WD Will Close PJ Manufacturing Site By The End Of 2019

PJ Manufacturing Site Is Going to Be Closed

Western Digital, an American computer hard disk drive manufacturer, famous for producing disks and providing data storage solutions. This US-based company entered Malaysia in 1973, and it sells custom semiconductors before transforming to hard drive manufacturer.

Recently, Western Digital was reported to decide to sell its PJ manufacturing site. After over 20 years in operation, this hard disk drive (HDD) manufacturing facility site will finally be closed by the end of 2019.

Western Digital manufacturing locations: it is located at the Sungei Way Free Trade Industrial Zone (pictured), Petaling Jaya, Malaysia.

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Why Did Western Digital Make This Decision

You may be wondering why Western Digital decides to PJ factory, right? In fact, according to Gouw Kim San, the Western Digital (Malaysia) Sdn Bhd Managing Director, this is deliberated by the company after taking production, staff as well as the ongoing business in Malaysia into consideration.

We are going through the process… the first part of it is we will focus on our people and then the moving of our production. We were more concerned with the ongoing business and I think right now that is well on the way hence we are ready now for the disposal of the asset.– Gouw Kim San said

Finally, Knight Frank Malaysia becomes the exclusive agent to deal with the marketing and sale of the PJ site. It is possible that one of the buildings on the PJ site will be kept as a regional and technical center; but this will depend on the offers it receives.

What’s the root reason for causing this?

Of course, it’s because the long-term demand for HDDs is declining worldwide. Dropping the operations at the PJ hard disk drive manufacturing facility site by the end of 2019 is one step of Western Digital to rationalize its global HDD manufacturing business.

Hundreds of Employees Are Affected by Plant Close

In 2011, Western Digital add about US$1.2 billion (RM4.8 billion) research and development facility to the PJ manufacturing site, which covers an area of 92,903 square meters. If the PJ factory in Malaysia is really closed, there will be many employees that will be impacted by this move.

But the good news is:

• Western Digital company promises to offer assistance (including severance compensation and upskilling support) to those employees
• Besides, the shutdown of PJ hard disk drive manufacturing factory does no harm to the presence of Western Digital in Malaysia; that is because there are still manufacturing sites of Western Digital in other parts of Malaysia: Johor and Sarawak.
• In addition, it a center of excellence in the Selangor (including some key operational planning, core engineering teams, and regional support functions) will be retained.

Transformation of Production Direction

Gouw said in the report that the company evaluates and transforms its business constantly in order to achieve the following goals:

• Create value for customers.
• Keep its position as a competitive data technology leader.
• …

Tough but significant actions, such as optimizing the large-scale manufacturing facilities around Asia, are required to accomplish these things. Now, Western Digital will move its focus from the original hard disk drive to new types of storage: SSD (Solid State Drive) and NAND flash production in Malaysia.

Read This WD Black NVMe SSD Review Before Purchase.

Besides, the SSD manufacturing plant of the company in Penang will be expanded as planned.

What’s more, the adjusting of its second SSD facility in Penang is in progress and will be finished and put into operation in a few months.