Nidec Resumes Production of Motors for Hard Drives in Thailand

Nidec's Facilities in Thailand Resume Operations

by Anton Shilov
11/07/2011 | 10:53 PM

Nidec Corp. on Monday announced an update concerning its operations in Thailand. By present four out of ten manufacturing facilities, which produce critical components of hard disk drives, have resumed operations, which means that the supply of HDD components will get better and shortages will not be as severe.

 

Nidec, which is based on Kyoto, Japan, produces hard disk drive (HDD) motors (at three factories), HDD motor components (at two facilities) and HDD base plates (at two fabs) in Thailand. In addition, the firm makes home appliance motors, camera shutters and lens units, inspection fixtures. By now, one HDD motor factory, one HDD motor components manufacturing facility and one HDD base plates making fabs are operational in the flooded country.

"We will continue our efforts to further improve the utilization of the factories whose operations have resumed and to bring the company’s other flood-stricken factories back into operation to the earliest extent possible," a statement by the company reads.

Nidec controls supplies of 75% - 90% of all HDD motors on the globe and has facilities in China, Philippines and Thailand. Exact production capacities of different factories are unknown, but it is naturally believed that the total amount of HDD motors produced in the fourth quarter will be substantially lower than that in Q3 2011.

The exact amount of damage and the effect of the floods on Nidec's performance are being assessed currently. The company plans to continue to report on any actual or potential impact on the company’s business performance in a prompt manner.