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Monday, October 16, 2006
Maxell Moves Production of DVD Recordable Media Overseas

Hitachi Maxell, Ltd., has decided to shift its write-once DVD production base overseas and commence Super ODM (Original Design Manufacturing), a new type of strategic production partnership, with a target date of spring 2007.

Maxell is implementing this restructuring of its optical disk operations under the banner of "Reconstructing and Newly Developing Core Operations," one of the action plans outlined in the company?s new medium-term business plan.

This move builds on previous steps taken by Maxell to restructure its optical disk operations, such as outsourcing the manufacture of products for overseas markets. Faced with the need to make further progress in restructuring, the Company made the decision to begin manufacturing under the new Super ODM production outsourcing system. Maxell will transfer most of a production line from the Tsukuba Works (Joso City, Ibaraki Prefecture), to an overseas partner company. The transfer of the line, which is currently being used to make write-once DVD discs for the domestic market, is scheduled to be completed in spring 2007.

Under Super ODM, the original quality control and production control techniques developed at the Tsukuba Works will be introduced across the board, and write-once DVD discs will be manufactured with production lines and production processes that are based on Maxell technologies. In this way, the Company will be able to ensure that these products continue to offer the same high levels of reliability and longevity.

Maxell will position the Tsukuba Works as an AD (Advanced Disk) Technology Center specializing in the development and production of such products as blue-laser optical discs, recordable DVD discs, and leading-edge DVD discs. At the same time, the Company will enhance the ability of the Tsukuba Works to serve as a "mother factory" supporting Maxell-brand optical media in global markets.

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