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Taiwan’s Wistron Corp to buy Western Digital PJ factory

Taiwan’s Wistron Corp to buy Western Digital PJ factory

16 Oct 2020

Taiwan Stock Exchange-listed Wistron Corp, a global leader in state-of-the-art design, manufacturing, services and systems for information and communications products, is expected to ink a deal soon with Western Digital (Malaysia) Sdn Bhd to purchase the latter’s factory located in Sungei Way Free Trade Industrial Zone, Petaling Jaya.

Sources say the deal, which comes one-and-a-half years after the asset was put up for sale in the market, may be done for between RM100 million and RM150 million. It is learnt that the site will not be redeveloped. Instead, Wistron, which currently operates a facility in Klang, may commence a new business on the site. Wistron, a US$29.2 billion company, was formed in May 2011 as a separate company from Acer to hold and operate certain businesses formerly engaged in by Acer’s design, manufacturing and services division.

Details of the deal remain sketchy. It was reported that Western Digital was interested in disposing of two facilities in Petaling Jaya — a 3.6-acre land comprising a double-storey building and a five-storey building with two basement levels as well as a total built-up area of 500,000 sq ft and an 11-acre land with a total built-up of 500,000 sq ft.

Western Digital had appointed Knight Frank Malaysia as its exclusive agent to handle the marketing and sale of the site. Knight Frank’s executive director Allan Sim declined to comment when contacted to confirm the deal and the details.

In March 2019, Western Digital said it was selling its hard disk drive (HDD) manufacturing facility following the company’s deliberations regarding its staff, production and the ongoing business in Malaysia. Western Digital ceased manufacturing operations in Petaling Jaya at end-2019 as part of its plans to rationalise its HDD manufacturing operations globally owing to declining long-term demand for HDD.

Western Digital still has manufacturing facilities in Penang, Johor and Sarawak.

In 2017, Western Digital Corp subsidiary HGST Technologies Malaysia Sdn Bhd placed its factory and land location in Bayan Lepas Industrial Zone, Penang, up for sale after ceasing operations in March of 2016.

Source: The Edge Markets Posted on : 16 October 2020