In a move designed to accelerate its participation in the global hard disk drive (HDD) market, Hitachi Global Storage Technologies (Hitachi GST) has unveiled a new "mega-manufacturing" center in Shenzhen, China. The opening of Hitachi Global Storage Products (Shenzhen) Company Limited, or Hitachi GSP, represents the first phase of an estimated US$500 million investment in the new facility. Ultimately, Hitachi GST's Shenzhen-based mega-manufacturing complex will be capable of producing 50% of Hitachi's annual HDD output.
Hitachi's "mega-manufacturing" concept places the entire supply chain of HDD production in a central location, whereby component manufacturing, supplier network, product assembly and final delivery are coalesced around a 60 kilometer radius of Shenzhen. The result is greater efficiencies, faster time to market, and tighter controls over product quality and delivery.
"The Hitachi GSP mega-manufacturing center is a significant milestone for us, and it's one that allows Hitachi to focus on meeting market and customer needs expeditiously," said Hiroaki Nakanishi, CEO, Hitachi Global Storage Technologies, as he officiated the opening ceremony at the facility today. "I wish to thank our dedicated team and the local government for helping Hitachi GST realize our vision for Hitachi GSP, and in the process, enabling us to create thousands of jobs for local and international communities alike."
The strong growth prospects and widely forecasted double-digit industry growth are among the reasons Hitachi GST chose to invest in additional disk drive and component-related manufacturing capacity. The new Shenzhen site will give Hitachi GST a supply-chain capability that is unmatched in the industry.
Hitachi GSP is expected to employ nearly 7,000 people in its first phase to meet the growing global demand for hard disk drives. Over 1,000 people already work at the facility today, and more than 10,000 man hours of technical training has been completed overseas, bringing new technical capabilities to Shenzhen.
The new facility will initially produce 3.5-inch hard disk drives and, ultimately, be capable of producing HDDs of varying form factors, giving Hitachi GST the flexibility required to meet the varying demands of both traditional IT and consumer segments. State-of-the-art manufacturing processes and equipment support the highly technical production process.
The first batch of HDDs came off the Hitachi GSP production line in January and was transported to Hong Kong and Holland. Shipments will continue to be made to Hitachi GST hubs globally.
General Manager
Dirk Thomas is the general manager of Hitachi GSP. He is also president of Hitachi GST in Greater China. In these positions, he leads Hitachi GST's operations throughout the Greater China region, including three Hitachi GST manufacturing companies and customer service & support centers in Beijing, Shanghai, Shenzhen, Hong Kong and Taipei.
"Creating end-to-end production capability in a single region is an innovative approach to drive localized sourcing with co-location, to shorten lead times, reduce transportation expenses and more quickly respond to market needs," said Dirk Thomas, general manager, Hitachi GSP and president, Greater China, Hitachi GST.
"The support we have received from the Shenzhen government has been excellent. The government has made great efforts to improve the city's overall infrastructure, and has also been a great partner in working to help our suppliers relocate to Shenzhen."
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