September 30, 2008

Showa Denko, Hoya to Merge Hard Drive Media Biz

Tokyo, Sept. 30 (Jiji Press)--Japanese chemical maker Show Denko K.K. and optical glass maker Hoya Corp. will establish a joint venture to integrate their operations in recording media for hard disk drives, the two companies said Tuesday.

The new company will be owned 75 pct by Showa Denko and the rest by Hoya.

The companies expect the joint venture to post annual sales of 180 billion yen, with a global market share equivalent to that of industry leader Seagate Technology Inc. of the United States.

The move is designed to boost the two firms' research and development capabilities at a time when hard drive storage capacity is rapidly expanding due to growing use in personal computers and other information technology-related electronics products.

Showa Denko and Hoya plan to consider reorganizing five production sites in Japan and overseas.END

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