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Thursday, September 05, 2002
CD-R disc makers ramp up China production


Taiwan’s three largest CD-R disc makers, after receiving Chinese government approval for their China facilities, are aiming to beef up monthly output to multi-million units by year-end. Ritek is currently installing machinery for its 50 production lines planned for the Kunshan, Jiangsu Province plant, with shipments scheduled to start in the fourth quarter. Monthly output capacity will be boosted to 10 million units by then, it said.

CMC Magnetics’ factory in Nantong, Jiangsu will soon begin production at a monthly output of two million units. Though the company has received official approval to operate 50 production lines, it said it doesn’t see a pressing need to use that capacity and will go forward based on its business needs. It also expected to build monthly output in China to 10 million units by the end of the year.

Prodisc Technology, whose production is based in Ningbo, Zhejiang Province, said it is speeding up plant construction to start production in October. Like Ritek and CMC, it indicated plans to grow its CD-R disc output in China to as many as 10 million units a month this year.

The disc makers, however, kept mum about their future pricing plans, which reinforces the view that a widely expected disc price increase this month may fail to materialize.

In assessing industry prospects, the companies said the market is hitting bottom this quarter and due for a rebound, citing signs of strengthening disc prices in Europe and continued efforts by distributors to cut inventory. The European Union's upcoming ruling on India-based manufacturer Moser Baer India on dumping allegations will also help clear the cloudy industry outlook, they added.


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