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TDK to Dissolve Strategic Alliance With Fujitsu
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.
May 8, 2009
TDK Corporation ("the Company") today decided to dissolve a strategic alliance agreement with Fujitsu Limited ("Fujitsu") in the magnetic hard disk drive ("HDD") head business. Accordingly, TDK and Fujitsu today also agreed to unwind their joint shareholding in TDK FUJITSU Philippines Corporation ("TFPC").
Philippines-headquartered TFPC is currently 66%- and 34%-owned by TDK and Fujitsu, respectively. Details are as follows.
- Reasons for Dissolving Alliance
In October 2004, TDK and Fujitsu signed a strategic alliance agreement in magnetic HDD heads. Under this agreement, the companies established TFPC in December 2004 as a manufacturing joint venture specializing in drive-head processing and assembly in the Philippines, where both TDK and Fujitsu have manufacturing operations. The goal was to build a structure for technological collaboration in the field of HDD heads. However, due to Fujitsu's recent decision to end HDD head and HDD operations, TDK and Fujitsu have agreed to dissolve the strategic alliance agreement and unwind their joint shareholding in TFPC.
- Details of Alliance Dissolution
The joint shareholding in TFPC will be unwound and TFPC will become a wholly owned TDK subsidiary.
Profile of Joint Venture
(1) Name TDK FUJITSU Philippines Corporation (2) Main business Manufacture of HDD heads (processing and assembly) (3) Established December 1, 2004 (4) Location 119 East Science Avenue Special Export Processing Zone
Laguna Technopark, Binan, Laguna, Philippines
(5) Capital US$65 million (6) No. of employees 2,236 (As of March 24, 2009)
- Profile of Former Alliance Partner
(1) Name Fujitsu Limited (2) Location 4-1-1, Kamikodanaka, Nakahara-ku, Kawasaki-shi,
(3) Representative Kuniaki Nozoe, President (4) Established June 1935 (5) Capital ¥324,625 million (as of December 31, 2008) (6) Fiscal year-end March 31 (7) No. of employees 173,733 (consolidated; December 31, 2008) (8) Main businesses Software and services, development and manufacture of IT and communications products (9) Net sales ¥5,330,865 million
(consolidated; year ended March 31, 2008)
(10) Relationship with TDK No capital or personnel relationships other than this strategic alliance
- Alliance Dissolution Date
May 11, 2009
The dissolution of this alliance is expected to have a negligible effect on TDK's operating results for the fiscal year ending March 31, 2010.
For further information, contact the Corporate Communications Dept.