Ritek, the second-largest producer of optical discs in Taiwan, will invest up to US$137 million to establish a subsidiary manufacturer of CD-R discs, with a monthly production capacity of 20 million discs in Vietnam, the company’s board of directors have decided.
Tentatively named Ritek Vietnam Incorporated, the subsidiary is located in the vicinity of Ho Chi Minh City, with the investment to be made through Score High Group Limited.
The new business is to spread the overall business risks incurred by Ritek, the company pointed out. In order to minimize production costs, Ritek has reduced its production capacity in Ireland and Germany and has used the investment in Vietnam for capacity expansion rather than choosing to expand in China.
There is a polycarbonate (PC) factory nearby the Vietnamese subsidiary, enabling a convenient supply of the material, and this is cited as one of the reasons behind the investment. The Vietnam CD-R disc factory is expected to begin operation this year.
Story source:
digitimes.com.
