Seagate says Malaysian ops not affected by Singapore closure

THE closing of Seagate Technology's hard disk drive plant in Singapore will not affect its operations here, a company official said yesterday.

"The operations in Penang and Senai are not affected," Seagate Malaysia director of corporate communications Audrey Cheah told Business Times.

Its facilities in Penang and Johor currently employ more than 5,000 Malaysians.

Seagate's presence in the country dates back to 1988 and its facility in Penang is home to its flagship recording head operation.

The Senai plant is engaged in media substrate manufacturing.

Seagate's other manufacturing facilities in the region are in Singapore, Thailand and China.

On Monday, the Scotts Valley, California-based company said it would lay off some 2,000 workers in Singapore as part of cost-cutting efforts.

"Seagate will relocate its hard disk drive manufacturing operation from the Ang Mo Kio facility in Singapore to other existing Seagate sites by the end of 2010," Cheah said.

Seagate is cautious about its third quarter outlook although analysts have made robust projections for the industry.

"We continue to manage our factories with an intense focus on maximising our returns on invested capital, through optimised inventory management while satisfying our customers' requirements and still being able to respond to demand upside if we have been too conservative in our growth expectations.

"Such upside would result in improved financial performance relative to our outlook," Cheah said.