TDK Plans to Cease CD, DVD Production

TDK has announced it plans to stop making recordable CDs and DVDs due to low market prices and increasing costs for raw materials.

TDK has announced it plans to cease making recordable CD and DVD media this May, closing the doors on is Luxembourg manufacturing facility. According to a company statement, declining market prices for recordable media and increased costs of raw materials led to the decision.

The company’s European facility was established in 1990, and has the capacity to produce seven million CD-Rs and eight million DVD-Rs per month. By closing the facility and withdrawing from the CD/DVD media market, TDK has revised its profit forecasts for the year downwards by about $366 million.

TDK says the company will continue to market blank media under its own name, but the media will actually be ordered from other manufacturers. TDK plans to manufacture Blu-ray media at its facility in Japan, focussing on high-margin, value-added products.