Read-Rite Closes Penang Plant, Lays Off 4,000 Workers

By Julian Matthews

July 21, 1998 (KUALA LUMPUR) — Read-Rite Corp., a maker of disk drive components, is closing its Malaysian operations and dismissing more than 4,000 staff.

“It is a difficult and painful decision, but we have to do it,” said Randall Hollis, vice president and managing director of Read-Rite Malaysia Sdn Bhd.

Hollis said “tremendous restructuring within the data storage industry” had forced the company to consolidate its Asian manufacturing facilities. He cited low product demand, low production volume and escalating costs as other factors for the move.

Read-Rite’s operations in Thailand and Philippines will take over the work of the Malaysian plant.

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