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Tdk Exits Cd / Dvd Media Market


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Withdrawal from the manufacturing of recordable CD&DVD

Accelerating the restructuring Recording Media business





March 8, 2006

TDK Corporation announced today that the board of directors decided at the board meeting held on March 8, 2006, to further accelerate the restructuring of recording media business, to withdraw from the manufacturing of recordable CD&DVD products in TDK group. Consequently, TDK decided to shut down the production facilities at its European subsidiary, TDK Recording Media Europe in Grand Duchy of Luxembourg. The shut down is planned to take place at the end of May 2006. This decision completes TDK's withdrawal from the manufacturing of recordable CD & DVD products, coupled with the reorganization of plants in Chikumagawa area (Nagano, Japan) implemented at the end of last year.


TDK Corporation and its group companies (hereinafter called "TDK") have been fundamentally restructuring the recording media business during this fiscal year. While reviewing the progress of the restructuring and future strategies of the recording media business, TDK has looked for ways to re-strengthen the manufacturing of recordable CD&DVD foundations from various perspectives. However, a sharp drop in market prices of recordable CD&DVDs as well as the increased cost of natural resources has led the recording media business in TDK to serious problems. After studies of measure for re-strengthening manufacturing, the decision of withdrawal from the manufacturing of recordable CD & DVDs that TDK management has made should lead to an improvement and reform of recording media business to change fundamentally the business model.


With this decision, TDK will accelerate ODM business model for the current generation of recordable CD&DVD products, or the third party supply.

In the domain of blue laser disc, a product much expected to grow in the near future, TDK will continue its R&D and manufacturing activities, the latter exclusively focused on highly value-added products, by utilizing the pilot production lines established at Chikumagawa Tecno Plan in Japan. TDK will also concentrate its resources on strengthening data storage tape business, which is another core business.


Through implementation of a series of restructuring activities, TDK will improve the business structure of recording media business all at once, seek improvement of efficiency and profitability for the future, and accelerate changes in the business structure and development of core products.

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Very interesting...


When I had gotten my very first CD-R drive (Compro/Panasonic 7502 4x burn) back in 1997, all I did was buy TDK media. At that time, the media wasn't perfect, neither was the drive nor the burning software. (It was _early_ in the CD-R days...)


Over time, everything had gotten better and I continued to use TDK media, until I ran into a really bad batch of CD's. I found a tool that could read the ATIP code (manufacturing code) on the CD-R, and found that the batch that I had was made by (BLAH) Ritek.


I contacted a friend that works at TDK's US HQ (About 5 miles from me) and she said that some of their CD-R manufacturing has been outsourced and that my milage may vary. She told me that I could purchase genuine TDK media from her, if I wanted to.


From that day on, I have only used Verbatim disks and they are perfect!!!

(Even so on DVD+/-R discs!) If you haven't tried them, buy a small spindle! You won't be sorry...

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