LONDON Hitachi Global Storage Technologies, the disk drive manufacturing arm of Hitachi Ltd., plans to invest up to $500 million to create "mega-manufacturing center" in Shenzhen, China, the company said Monday (June 21).
The facility will perform final assembly of disk drives using existing component manufacturing in Shenzhen, which borders Hong Kong, Hitachi said. The company did not indicate a time period over which the money would be spent.
Hitachi already employs approximately 4,500 people at its two existing Shenzhen manufacturing companies, which produce magnetic recording heads and storage media.
Hitachi expects the manufacturing center to employ nearly 7,000 people in its first phase to meet the growing demand for hard-disk drives. The project, which initially includes construction of a 35,000-square-meter manufacturing facility, is expected to begin in the fourth quarter of 2004.
The new facility is expected to start production of 3.5-inch disk drives in the fourth quarter of 2005. Ultimately, it will be capable of producing disk drives of varying form factors.