In the past several months, two Japanese companies have ended production on manufacturing tape cartridge media including LTO tapes. These two companies are Maxwell and TDK.
TDK begin withdrawing LTO tape manufacturing in the first quarter or 2014. Here is a brief recap of TDK’s restructuring process:
“For the restructuring reform progress, in order to optimize the business portfolio we have to withdraw from the LTO business, ending production by October and withdrawing entirely by March 2014, as well as withdrawing from the Blu-ray business by the second half of this year. Second, in order to enhance our manufacturing capabilities we will implement the consolidation of domestic production bases. For restructuring reform costs, in Q1 we spent 700 million yen, and in Q2 we spent 200 million yen. 2.8 billion yen will be spent by the withdrawing date. 3 billion yen were spent in Q2 so in total we spent 3.7 billion yen in restructuring reform costs in the first half, which is out of the 10 billion yen structural reform budget of this fiscal year. The expected amount of benefits from this structural reform is still about 8 billion yen that we announced in April 2013 and this is the final phase of restructuring.”
LTO tapes or Linear Tape-open is a magnetic tape data storage technology. LTO is widely used with small and large computer systems especially for back up.
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