Prodisc Technology the manufacturer of DVD+R/-R media and its rival Optodisc Technology both among the top 5 media produces in Taiwan have agreed to merge. The companies will now be held under a new holding company called UPO Industrial Holding Corporation. The two companies will convert their shares in to those of UPO and will then by subsidiaries of the UPO holding company. The UPO corporation will have a capital of NT$20.0 Billion (US$603million), the holding company is planned to for establishment in January 2006.
The merger of both companies will save both companies in R&D (Research and Development) and buying costs said Prodiscâ€™s president. He went on to say that the companies will be able to complement both product portfolios and clienteles.
While Prodisc concentrates on DVD+R/-R discs for OEM clients, Optodisc markets DVD+RW/-RW/RAM discs to distributors in clone markets. The combined capacity of both Optodisc Technology and Prodisc Technology will mean the new company will be able to output 100 million DVD+R/-R discs, six million DVD+RW/-RW discs and one million DVD-RAM discs a month.
I found this news to be quite shocking!
The new company just might be the new largest producer of DVD media.
Does anyone know what is going to happen to Optodisc’s USA branch office?