Tokyo — Further accelerating the restructuring of its recording media business, TDK has decided to stop manufacturing recordable CD and DVD products for the Japanese market. The restructuring in Europe does not impact the United States.
Consequently, this May, the company is halting production at its Luxembourg subsidiary, TDK Recording Media Europe, a decision that will complete recordable CD and DVD withdrawal in its home-based country.
Among the reasons for ending CD and DVD manufacturing are a sharp drop in market prices of recordable CD and DVDs, as well as the increased cost of natural resources, said the company.
With the blue-laser disc, a product much expected to grow in the near future, TDK said it will continue its R&D and manufacturing activities, the latter exclusively focused on highly value-added products.
Through implementation of a series of restructuring activities, TDK expects to improve the business structure of its recording media business, improve future efficiency and profitability and accelerate changes in the business structure and development of core products.
Cost of withdrawal from CD and DVD making is estimated at $68 million.