Hutchinson Technology Breaks Ground for Its Thailand Suspension Assembly Operation
Posted Mar 2, 2010 14:57 (GMT +7)
HUTCHINSON, Minn.--(GLOBE NEWSWIRE)--Feb. 9, 2010
Hutchinson Technology Incorporated (Nasdaq:HTCH) is holding a groundbreaking ceremony today to formally mark commencement of the construction of its suspension assembly operation located in the Rojana Industrial Park in Ayuthaya, Thailand. The 13,656 square meter facility is scheduled for completion in August of 2010 and will be equipped for high-volume manufacturing of suspension assemblies for disk drives.
According to Kathleen Skarvan, president of Hutchinson Technology's Disk Drive Components Division, the company selected Thailand as the location for its manufacturing operation because of its position as a major manufacturing base for the disk drive industry. ""Being located in closer proximity to our customers will improve our ability to support their operations and enhance our competitive position,"" she said. ""In addition, Thailand offers a favorable business climate and a quality workforce that is familiar with high technology products and processes.""
Skarvan said the company expects the total investment value of the project to be approximately 4 billion baht. ""This investment reflects the transfer, installation and qualification of automated manufacturing equipment and precision tooling, along with approximately 500 million baht in capital expenditures for construction of the building,"" she said. Skarvan also expressed appreciation for the cooperation and support from the Thailand Board of Investment (BOI) and Thailand's National Electronics and Computer Technology Center (NECTEC) in bringing this operation to Thailand.
""Hutchinson Technology's investment in its Thailand suspension assembly operation will help the hard disk drive cluster in Thailand gain more strength,"" said Ms. Atcharin Pattanapanchai, deputy secretary-general of the Thailand BOI. ""In 2010, the BOI is considering implementing new investment incentives and measures to support the government's sustainable investment policy.""
Dr. Pansak Siriruchatapong, executive director of NECTEC added, ""Hutchinson Technology's suspension production process requires advanced technology and skilled employees. Thailand's National Science and Technology Development Agency (NSTDA), which is the driving force, not only in research and development, but also in technology transfer, established the Hard Disk Drive Institute (HDDI) to support the development of Thai entrepreneurs, research activity and workforce development to meet the industry's needs. HDDI is ready to support Hutchinson Technology in related activities, including the establishment of the Industry University Collaborative Research Center.""
The company selected Thai Takenaka International Ltd. as the general contractor for the building project. ""Takenaka brings an experienced team and a proven track record in meeting goals and timelines,"" said Skarvan. ""We are pleased to have them as a partner on this important project.""
About Hutchinson Technology
Hutchinson Technology is a global technology leader committed to creating value by developing solutions to critical customer problems. The company's Disk Drive Components Division is a leading worldwide supplier of suspension assemblies for disk drives. The company's BioMeasurement Division is focused on bringing to the market new technologies and products that provide information clinicians can use to improve the quality of health care and reduce costs.
Cautionary Note Regarding Forward-Looking Statements
This announcement contains forward-looking statements regarding assembly operations in Thailand, the company's competitive position, total investment value and capital expenditures. The company does not undertake to update its forward-looking statements. These statements involve risks and uncertainties. The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of factors described from time to time in the company's reports filed with the United States Securities and Exchange Commission.
CONTACT: Hutchinson Technology Inc.
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