Megan Responds to Optical Storage
DemandData storage manufacturer Megan Media Holdings Berhad
has pumped US$7.9 million into expanding its current operations to meet
escalating global demand for optical storage products. According to
industry analysts, worldwide demand for CD-R and DVD-R is expected to grow
on a compounded rate of 16.5% and three-fold respectively in the next
Megan Media's executive chairman Datuk Dr Mohd Adam
Che Harun said that the global demand for DVDs will go up exponentially in
the coming years as prices of DVD players gradually drop. Coupled with a
growing computer-savvy public equipping themselves with sophisticated
storage media, Adam is confident of gaining a larger slice of the data
"The export market for CD-Rs and DVD-Rs has grown
steadily over the last two years, but we were unable to capitalize on
opportunities due to our limited manufacturing facility and small
production capacity," he said.
The company grew its production
capacity from 1.5 million in 2000 to 5.5 million CD-R and DVD-R a month
last October and plans to increase it to 7.5 million a month with the
set-up of two more new production lines by April.
investment, US$3.1 million will be used to build a new factory to expand
monthly production capacity to 20.5 million pieces on a gradual basis. The
remaining US$4.8 million is for the purchase of two new machines.
Megan began the manufacture of optical
storage products in 1999. It produces a line of data storage products for
the domestic market under its own brand, Memory. The company's main
revenue comes from contract or original equipment manufacturing for brands
from companies such as BASF, Samsung, LG, Grundig, Mitsubishi, JVC and
About 90% of Megan's products are exported, of which 35% goes
to the European Union, 35% to the US, and the remainder to Japan, Korea
and Singapore. Principal overseas customers include Europe Multimedia Ltd,
Cantech Magnetics Inc, Akane Bussan Co Ltd, MJC (S) Pte Ltd and Mediatech
Adam added that he was also confident of securing
contracts from two leading Japanese firms for the production of CD-Rs and
DVD-Rs, as Megan utilizes Japanese technology for its production
activities. The company is also making a move into the China market with a
recent memorandum of understanding signed with Beidaihe Qinhuandao
Xingyuan Science Development Co Ltd to jointly undertake the manufacturing
and distribution of data storage products.
(March 2003 Issue, Nikkei Electronics Asia)
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