Ritek, the second largest Taiwan-based maker of optical discs, will, in line with its overall adjustment in production, shift some of its blank CD-R and DVD+R/-R disc manufacturing equipment from Taiwan-based factories to those of Ritek Vietnam, its subsidiary in Vietnam, according to a company filing with the Taiwan Stock Exchange (TSE) on August 3.
The shift will be through Ritek’s sale of manufacturing equipment to its wholly owned overseas subsidiary Score High Group for US$34.560 million, the current book value of the equipment. Score High will then resell the equipment to Ritek Vietnam, Ritek spokesman Eric Ai indicated.
Having begun production in the third quarter of 2006, Ritek Vietnam currently has a monthly capacity of 20 million CD-R discs plus three million DVD+R/-R discs, Ai pointed out. The additional manufacturing equipment will approximately double existing monthly capacity enabling Ritek Vietnam to supply fast growing markets in Southeast Asia, such as Thailand and Malaysia, as well as India and current main markets in Europe, Ai noted.
In addition to Ritek, CMC Magnetics, the largest Taiwan-based maker of optical discs, had its subsidiary maker in Thailand start production of blank CD-R discs in the third quarter of 2006, and production of DVD+R/-R discs is to begin in the second half of 2007, according to industry sources. Gigastorage, a second-tier optical disc maker in Taiwan, has also set up a subsidiary in Thailand, with production of blank CD-R discs having kicked off in May 2007, and that of DVD+R/-R discs to begin in the fourth quarter, the sources indicated.