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TDK to Withdraw from Unprofitable Product Category to Raise Production Efficiency

Information contained in the news releases are current as of the date of the press announcement, but may be subject to change without prior notice.

November 28, 2011

TDK Corporation (President: Takehiro Kamigama) today announced that it will raise production efficiency by ending the production of chip resonators*, an unprofitable product category, with details as follows. This move is part of TDK’s current measures to strengthen its manufacturing capabilities and enhance its earnings power.

  1. Purpose
    In response to structural economic changes, an increasingly fierce global business environment and other developments, TDK is currently implementing structural reforms to remain competitive in the global market. As part of these reforms, TDK has decided to end the production of chip resonators at the TDK Shonai Corporation Yuza Plant, after examining their profitability, future prospects and certain other factors. In line with this decision, the Yuza Plant will be closed on September 30, 2012.
  2. Schedule for ending production and closing business site
    (1) Ending production: Production will end in September 2012 (to be scheduled)
    (2) Closing business site: September 30, 2012 (to be scheduled)

    After the closure, TDK Shonai Corporation will manage three plants: the Tsuruoka Plant (Tsuruoka City, Yamagata Prefecture), the Sakata Plant (Sakata City, Yamagata Prefecture) and the Iida Plant (Iida City, Nagano Prefecture).
  3. Personnel
    TDK plans to transfer employees (46 people) currently working at the Yuza Plant to other TDK Shonai Corporation plants as a result of the discontinuation of chip resonator products and closure of business site.
  4. Outline of TDK Shonai Corporation (as of November 2011)
    (1) Company name: TDK Shonai Corporation
    (2) Location: 97 Aza Aburada, Yamada, Tsuruoka City, Yamagata Prefecture (within the Tsuruoka Plant)
    (3) Representative: Yoshinobu Sasaki
    (4) Business: Manufacture of coil products
    (5) Established: April 1, 2005
    (6) Capital: ¥110 million
    (7) Main business sites: Tsuruoka Plant, Sakata Plant, Yuza Plant, Iida Plant

* Chip resonators: these components are applied piezoelectric ceramics products that are used as resonators to provide a source of clock signals for digital devices.


For further information, contact the Corporate Communications Dept.
Tel.: 81-3-6778-1055
E-mail: pr@jp.tdk.com

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