Restructuring of Optical Disk Operations
Start of Strategic Outsourcing of Production of Write-Once DVD Discs
Hitachi Maxell, Ltd., (Yoshito Tsunoda, President and Chief Executive Officer) has decided to shift its
write-once DVD production base overseas and commence Super ODM (Original Design Manufacturing), a
new type of strategic production partnership, with a target date of spring 2007. Maxell is implementing this
restructuring of its optical disk operations under the banner of “Reconstructing and Newly Developing Core
Operations,” one of the action plans outlined in the company’s new medium-term business plan.
This move builds on previous steps taken by Maxell to restructure its optical disk operations, such as
outsourcing the manufacture of products for overseas markets. Faced with the need to make further progress
in restructuring, the Company made the decision to begin manufacturing under the new Super ODM
production outsourcing system. Maxell will transfer most of a production line from the Tsukuba Works (Joso
City, Ibaraki Prefecture), to an overseas partner company. The transfer of the line, which is currently being
used to make write-once DVD discs for the domestic market, is scheduled to be completed in spring 2007.
Under Super ODM, the original quality control and production control techniques developed at the Tsukuba
Works will be introduced across the board, and write-once DVD discs will be manufactured with production
lines and production processes that are based on Maxell technologies. In this way, the Company will be able
to ensure that these products continue to offer the same high levels of reliability and longevity.
Maxell will position the Tsukuba Works as an AD (Advanced Disk) Technology Center specializing in the
development and production of such products as blue-laser optical discs, recordable DVD discs, and
leading-edge DVD discs. At the same time, the Company will enhance the ability of the Tsukuba Works to
serve as a “mother factory” supporting Maxell-brand optical media in global markets. As a result of this
restructuring move, Maxell will establish a system with the optimal balance among in-house production,
Super ODM products, and outsourced production. The Company remains committed to boosting
management efficiency in its optical disk operations.
Dolph? Any news on this? Sounds like they will ask partner companies to produce DVDRs with Maxell's own stamper tech, and retain their in-house facility for BluRay etc.