Low demand forces Western Digital to close a plant in Malaysia to manufacture hard drives

Western Digital has decided to close the hard drive production plant in Petaling Jaya, located near the capital of Malaysia, Kuala Lumpur. The reason for this was the reduced demand for HDD.

Western Digital has been working in Malaysia since 1973. The company initially engaged in the creation of semiconductor products. In 1994, the assembly lines at the factories of the American manufacturer were converted for the production of hard disks, after which the staff of the field was replenished by 13 thousand people.

Actually, Western Digital started active production of hard disks in 2008. Then the factories in Thailand and Malaysia were closed. In 2016, WD closed the Malaysian plant HGST (formerly Hitachi), its subsidiary. As a result, Western Digital will have only two main enterprises producing HDD, and both are in Thailand. In Malaysia, the company has two assembly lines. In addition, there are still objects for testing and production of solid-state drives.

"Against the backdrop of the decline in long-term demand for hard drives, Western Digital has taken steps to rationalize its operations in the production of HDD on a global scale. The company will complete the production of hard drives in Petaling Jaya (Selangor state) by the end of 2019. This process will be carried out in close cooperation with our employees, customers and our partners, "the Western Digital press service reported.

Employees of the company will receive compensation, termination benefits and support from WD. The manufacturer plans to maintain the Center of Advanced Technologies in Selangor and continue to increase the production of solid-state drives, flash drives and memory cards.

Source: theregister

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