As part of its manufacturing strategy to expand production capabilities worldwide, Iomega Corp. announced it has entered into an agreement to purchase a hard-drive manufacturing facility in Penang, Malaysia from Quantum Corp.
The plant will serve as an additional manufacturing site for Iomega's Jaz drives and disks initially, with the intent to eventually broaden production to other Iomega products.
The facility has the capital equipment and manufacturing infrastructure in place for the production of Iomega Jaz drives and disks. The addition of this high-volume facility is designed to increase Iomega's manufacturing efficiencies and contribute to the company's strategy to drive product costs down.
"The purchase of this manufacturing facility is a winning decision on all fronts. We can hit the ground running with an established production facility and a skilled labor force in place, which will allow us to move forward quickly. In addition, the facility is in proximity to some of our key component suppliers," said Reed Brown, vice president of worldwide manufacturing at Iomega. "With our Penang manufacturing facility, we're well-positioned to maintain the quality and unprecedented value of our products."
The Malaysian site is a 376,000 square-foot facility that includes a state-of-the-art 36,000 square-foot clean room. Iomega Jaz drive and disk production in Penang is expected to begin in the third quarter of 1996.
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