Marubeni Establishes Joint Venture in Shenzhen, China for Glass Substrate Used for HDD

Jul. 29. 2004
Marubeni Corporation

Marubeni Corporation, together with Toyo Kohan Co., Ltd. and Shenzhen Kaifa Magnetic Recording Co., Ltd, will establish a joint venture company in the Shenzhen Grand Industrial Zone in Shenzhen, China to manufacture and sell glass substrate used for hard disk drives.

Currently there are, roughly speaking, two main types of storage media used in hard disc drives-glass substrate and aluminum substrate-and these are used in distinctly different applications. Demand for glass substrate, which is harder and more durable than aluminum substrate, is expanding rapidly, as it is required for notebook PCs, portable audio, car navigation systems, mobile devices, etc., and other applications that require a high degree of shock resistance.

To date, Marubeni has sold aluminum substrates produced by Toyo Kohan's Kudamatsu plant (located in Kudamatsu, Yamaguchi Prefecture) and TOYO-MEMORY TECHNOLOGY SDN.BHD (located in Kedah, Malaysia; Ownership: Toyo Kohan 60%, Marubeni 40%). Now, however, through the sale of glass substrates, which is predicted to see further growth, Marubeni will strengthen its market presence.

[Profile of the new company]

  1. Location:
           Shenzhen Grand Industrial Zone, People's Republic of China
  2. Capitalization:       
            Approx. 2 billion yen
  3. Shareholder composition:
            Special purpose company(*) 51%
            Shenzhen Kaifa Magnetic Recording Co., Ltd. 49%
             * Special purpose company profile
       (1) Capitalization: Approx: 
              1 billion yen
       (2) Shareholder composition:
              Toyo Kohan Co., Ltd.) 60%;Marubeni 40%,
  4. Business details:  
            Manufacturing and sale of glass substrate for HDD
  5. Production capacity:  
            400,000 pieces/month (Initially)
  6. No. of employees:  
             Approx. 140
  7. Future plans:   
             August 2004 Company established
             December 2004 Facilities to be completed
             January 2005 Commence sample shipments
             March 2005 Commence production
  8. Other: 
              Shenzhen Kaifa Magnetic Recording Co., Ltd. profile
              Subsidiary of China Great Wall Computer Group 
              Company. Established in 1996. Manufactures aluminum 
              substrate for HDD.
              Capitalization: US$27 million

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