Hard disk leader Seagate will raise its current manufacturing capacity in Singapore to new heights with a soon-to-be-built third recording media production plant.

Last August, Seagate, the world's leading manufacturer of hard disk drives (HDDs), announced that it would invest another S$2 billion (US$1.3 billion) in the Asia-Pacific region the following year to accelerate its growth in the global media and digital storage arena.

And the company has kept true to its word. In late September, Seagate coincided the official opening of its second media manufacturing facility in Singapore with a major announcement - that plans for further expansion were in the works, with a third media production plant to be built over the next four years. "Singapore has been a key strategic site for Seagate and today's announcement essentially establishes the country as Seagate's central media manufacturing hub," says Bill Watkins, CEO, Seagate.

Singapore has been a valued partner and preferred investment choice for Seagate since it began rolling out recording media disks in the city-state in 1996. Today, the Republic is home to three of Seagate's major manufacturing facilities; the arrival of the third hard disk drive media production plant will raise the number to four. Ang Mo Kio is the site of the hard disk assembly plant, while two media manufacturing plants are located at Woodlands. Besides manufacturing, Seagate also has a regional HQ and R&D presence in Singapore.

The 54,000 sq m third hard disk drive media production plant will be constructed close to the existing one at Woodlands, to facilitate harmonious expansion of Seagate's recording media manufacturing capabilities.

Growth, uninterrupted

The 54,000 sq m third hard disk drive media production plant will be constructed close to the existing one at Woodlands, to facilitate harmonious expansion of Seagate's recording media manufacturing capabilities. "Media manufacturing is a tremendously complex technology," points out Jerry Glembocki, senior vice president, recording heads and media operations, Seagate. "It takes many, many years to train an engineer or technician to be fully functional. We have that talent here, so the reason we’re announcing this expansion is that we'd like to leverage that and take advantage of it."

Manufacturing activities are expected to kick off mid-2008. When fully operational, the plant will boast a projected maximum production capacity - or about 45 million recording disks per quarter - that will be at least 50 per cent more than the current capacities of its two existing media plants. Initial employee headcount will feature around 1,000 staff, which could be potentially increased to some 3,000 across various engineering, technical and professional positions.

Seagate intends to outfit the plant with state-of-the-art equipment and new technologies, including perpendicular recording capabilities. "The new facilities will make Seagate in Singapore the world's single largest producer of recording media," highlights Glembocki.

Equally excitingly, the combined production figures at the expanded Woodlands site mean that about 80 per cent of Seagate's total requirement of recording media will come from Singapore. "Singapore is a highly efficient and cost-effective manufacturing site for Seagate recording media operations, thanks to a number of factors," says Glembocki. Among these, he cites the country's "availability of utilities, favourable logistics infrastructure and a collaborative partnership in terms of local governance and regulations."

"The Singapore Government, through the Singapore Economic Development Board, has played a very proactive role in creating these advantages and continues to ensure that Singapore remains a location of choice for manufacturers like Seagate," highlights Glembocki.

Strengthening its forte

In the same vein, Singapore is working to capture a larger share of the hard disk media market, and the country is faring well thus far. In 2005 alone, Singapore accounted for 25 per cent of the world's market share for the production and supply of hard disk drive media. Locally, the industry pumped in S$14 billion (US$8.8 billion), or some 20 per cent, to electronics output. More international companies are embarking on manufacturing and R&D intensive operations here to roll out next-generation data storage or media technology products and solutions for global consumption in the constant-evolving desktop, enterprise, notebook and consumer electronics markets. Showa Denko, a major supplier of the world's supply of HD media, and glass media manufacturer Hoya Magnetics are just some of the companies that have taken the lead in Singapore’s vibrant HDD ecosystem.

With plans for its third media manufacturing plant already laid in concrete, Seagate has further pledged to maintain the transfer of its cutting-edge technologies and products to Singapore. "We will continue to make strategic investments in Singapore by leveraging established infrastructure and tapping the exceptional pool of technological and human resources this island-nation has to offer," says CEO Watkins, affirming Seagate-Singapore's mutually rewarding partnership as it grows from strength to strength.