Seagate closes one of its largest factories for the production of HDD and dismiss all employees
According to sources, in the process reducing costs, Seagate has closed one of the factories producing hard drives. Is, precisely, shut down the factory in Suzhou (China).
It is worth noting that this is one of the largest factories of the company, and its closure, which is logical, will lead to a significant decrease in production volumes HDD Seagate. Factory in Suzhou with an area of 102 000 m2, the company has got to in the process of acquisition of Maxtor in 2006. It is alleged that production at the plant was stopped some time ago, and the employees will be dismissed today. How many employees worked at the factory, is not specified.
After the closure of the Seagate plant will remain two vertically integrated factory for the production of HDD: in the cities of Wuxi (China) and Korat (Thailand). To close, chosen the factory in Suzhou, because it does not contain capacities for the production of components for the Assembly of HDD unlike the rest of the plants. Thus, Seagate will optimize logistics and will be spared from having to deliver to some of the factories of the components. Against this background, the question arises, what will happen with the Seagate factories which only produce individual parts for hard drives.