Hitachi takes over Western Digital plant

Western Digital has sold one of its Malaysian factories to competitor Hitachi this week. The takeover of the factory -which predominantly produces the materials for aluminum harddisk platters- does not come as a big surprise; both companies had already announced it in May, earlier this year. In December of last year, Western Digital reported that the factories activities would be shifted to another Malaysian factory to keep the costs low and to anticipate on the decreasing demand for the platters used in traditional harddisks.

Both Hitachi and Western Digital report that takeover as favorable. Rather than closing down the factory, Western Digital now received a financial boost, while Hitachi can expand its activities close to its other facilities, that were already in the vicinity. With the factory takeover, Hitachi also hired the employees that were already stationed at the plant. Neither of the companies wishes to make a statement regarding the takeover price.

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