Business Media

Notice Concerning Dissolution of Consolidated Subsidiary Due to Business Withdrawal

Aug. 29, 2013 – TDK Corporation (the “Company”) has announced that at a meeting of the Board of Directors held on August 28, 2013 it was decided that consolidated subsidiary Media Technology Corporation will withdraw from the data tape business and be dissolved.

  1. Reason for Business Withdrawal
    Media Technology manufactures and sells LTO-standard (Linear Tape-Open) tape-based data storage media for archiving and backing up large volumes of data. In recent years, however, the data storage market has been contracting, creating a difficult business environment. This has also made it difficult to foresee business growth going forward.

    TDK is working hard at present to improve earnings in its core passive components business, and as part of these efforts it is reviewing the entire group portfolio and selectively concentrating resources on certain businesses. In this context, TDK has decided to withdraw from the data tape business as of the end of March 2014.

    Accordingly, plans also call for Media Technology to be dissolved at the end of March 2014.

  2. Overview of Media Technology Corporation
    (1) Company  : Media Technology Corporation
    (2) Headquarters  : 801 Nakadate, Chuo City, Yamanashi Prefecture
    (3) Representative  : Kenji Kotegawa
    (4) Main business  : Manufacture and sale of LTO tape-based data storage media and other data tapes
    (5) Paid-in capital  : 5.0 billion yen
    (6) Establishment  : October 11, 1991
    (7) No. of employees  : 144 (As of August 29, 2013; including employees loaned out from TDK Corporation)
  3. Schedule
    End of October 2013 Conclusion of production
    End of March 2014 Conclusion of sales, withdrawal from business and dissolution
  4. Impact on Business Results
    This move will have a negligible impact on TDK’s consolidated business results.
About TDK Corporation

TDK Corporation is a leading electronics company based in Tokyo, Japan. It was established in 1935 to commercialize ferrite, a key material in electronic and magnetic products. TDK‘s portfolio includes electronic components, modules and systems marketed under the product brands TDK and EPCOS, power supplies, magnetic application products as well as energy devices, flash memory application devices, and others. TDK focuses on demanding markets in the areas of information and communication technology and consumer, automotive and industrial electronics. The company has a network of design and manufacturing locations and sales offices in Asia, Europe, and in North and South America. In fiscal 2013, TDK posted total sales of USD 9.1 billion and employed about 80,000 people worldwide.

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TDK Corporation
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+81 3 6852-7102

Original Source: Notice Concerning Dissolution of Consolidated Subsidiary Due to Business…