Newspaper article THE JOURNAL RECORD

Seagate May Sell Unused Plant in the Philippines

Newspaper article THE JOURNAL RECORD

Seagate May Sell Unused Plant in the Philippines

Article excerpt

SCOTTS VALLEY, Calif. (Bloomberg) -- Seagate Technology, the No. 1 maker of computer disk drives, may sell an unused $70 million plant in the Philippines amid falling demand for the storage devices.

Seagate, which employs 2,300 in the Oklahoma City area, said last week it was putting on hold its plans for the Cebu province, Philippines plant, which was built last year and would have employed 1,100 workers. The Scotts Valley-based company fired 1,800 employees, or 10 percent of its workforce, in January.

Seagate's moves come amid a global slump in disk-drive demand, which has been bruised by price cutting and weak sales of personal computers. Some analysts said the industry's woes may result in more plant closings and acquisitions to reduce the number of drive makers.

"If the situation persists, you have consolidation among companies in order to survive," said Peter Lieu, an analyst at Needham & Co.

Price-cutting among the top drive makers resulted in Seagate reporting a loss of $530 million, or $2. …

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