Identifier
Created
Classification
Origin
09SINGAPORE734
2009-08-05 09:52:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Singapore
Cable title:
SEAGATE CLOSES SINGAPORE HDD PLANT, CONTINUING ELECTRONICS
how-toVZCZCXRO5038 RR RUEHCHI RUEHDT RUEHHM RUEHNH DE RUEHGP #0734 2170952 ZNR UUUUU ZZH R 050952Z AUG 09 FM AMEMBASSY SINGAPORE TO RUEHC/SECSTATE WASHDC 7027 INFO RUEHBJ/AMEMBASSY BEIJING 3027 RUEHGH/AMCONSUL SHANGHAI 0135 RUCNASE/ASEAN MEMBER COLLECTIVE RUCPDOC/USDOC WASHDC
UNCLAS SINGAPORE 000734
STATE PASS USTR
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON EINV CN SN
SUBJECT: SEAGATE CLOSES SINGAPORE HDD PLANT, CONTINUING ELECTRONICS
DECLINE
REF: SINGAPORE 715
UNCLAS SINGAPORE 000734
STATE PASS USTR
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON EINV CN SN
SUBJECT: SEAGATE CLOSES SINGAPORE HDD PLANT, CONTINUING ELECTRONICS
DECLINE
REF: SINGAPORE 715
1. (SBU) U.S.-based Seagate Technology announced August 4 that it
would relocate its hard disk drive (HDD) manufacturing from
Singapore to other Seagate facilities elsewhere in Asia by the end
of 2010 and would lay off 2000 of its current 8000 person labor
force. Seagate has had operations in Singapore since 1982 and was
once the largest private employer in Singapore, but in recent years
has moved manufacturing to other plants in Thailand, Malaysia and
China. In February Seagate retrenched an undisclosed number of
workers. Seagate's plant closure continues an already steady decline
of Singapore's electronics manufacturing industry (reftel).
2. (SBU) Doug Dehaan, Seagate's Senior Vice President for Global
Manufacturing Operations, told Econoff that although the recession
had hurt sales and reduced production in Singapore, Seagate would
likely have switched production of HDDs out of Singapore in any
event. Dehaan said that Seagate's Singapore plant is its largest
for HDD production, but is heavily underutilized and accounts for
less than ten percent of its global HDD output.
3. (SBU) Seagate's HDD production will move to Suzhou, China, just
outside of Shanghai. Dehaan said that lower labor cost was a
significant factor in the decision to shift manufacturing to China,
but noted that infrastructure advantages were at least as important.
Seagate estimated it would save as much through lower electricity
costs in China as it would save in labor costs.
4. (SBU) Seagate's announcement said the company remained committed
to Singapore and would continue to base its international
headquarters here as well as its product development facilities in
Singapore's Science Park, and a media manufacturing plant, the
largest in the world. Dehaan said that although it was difficult
for Singapore to compete on labor cost, Seagate considered the high
level of education in Singapore a strong advantage for product
development and expected to continue to keep its high value-added
production in Singapore for the long term.
SHIELDS
STATE PASS USTR
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON EINV CN SN
SUBJECT: SEAGATE CLOSES SINGAPORE HDD PLANT, CONTINUING ELECTRONICS
DECLINE
REF: SINGAPORE 715
1. (SBU) U.S.-based Seagate Technology announced August 4 that it
would relocate its hard disk drive (HDD) manufacturing from
Singapore to other Seagate facilities elsewhere in Asia by the end
of 2010 and would lay off 2000 of its current 8000 person labor
force. Seagate has had operations in Singapore since 1982 and was
once the largest private employer in Singapore, but in recent years
has moved manufacturing to other plants in Thailand, Malaysia and
China. In February Seagate retrenched an undisclosed number of
workers. Seagate's plant closure continues an already steady decline
of Singapore's electronics manufacturing industry (reftel).
2. (SBU) Doug Dehaan, Seagate's Senior Vice President for Global
Manufacturing Operations, told Econoff that although the recession
had hurt sales and reduced production in Singapore, Seagate would
likely have switched production of HDDs out of Singapore in any
event. Dehaan said that Seagate's Singapore plant is its largest
for HDD production, but is heavily underutilized and accounts for
less than ten percent of its global HDD output.
3. (SBU) Seagate's HDD production will move to Suzhou, China, just
outside of Shanghai. Dehaan said that lower labor cost was a
significant factor in the decision to shift manufacturing to China,
but noted that infrastructure advantages were at least as important.
Seagate estimated it would save as much through lower electricity
costs in China as it would save in labor costs.
4. (SBU) Seagate's announcement said the company remained committed
to Singapore and would continue to base its international
headquarters here as well as its product development facilities in
Singapore's Science Park, and a media manufacturing plant, the
largest in the world. Dehaan said that although it was difficult
for Singapore to compete on labor cost, Seagate considered the high
level of education in Singapore a strong advantage for product
development and expected to continue to keep its high value-added
production in Singapore for the long term.
SHIELDS