CMC Factory Fire To Hurt CD-R Prices This Year

Vikingod · Mar 3, 2006, 08:08 PM

"As if the CD-R industry needed one more reason to hike up prices again: one of CMC's principle factories burns to the ground

One of the largest CD-R manufacturers, CMC Magnetics, just lost the capacity to fill 9 million units of CD-R media over the next few months. A fire broke out at one of the smaller production facilities in Taiwan, rendering it completely useless until the equipment is replaced.

CD-R prices have already been on the rise as companies such as Ritek and Mitsubishi Chemical exit industry in favor of the more lucrative DVDR industry instead. Royal Philips Electronics recently changed the licensing scheme of CD-R media to reduce the cost per disc, but with less media on the market spindle cost will inevitably increase.

CMC Magnetics is responsible for nearly 20% of the world's CD-R demand, and the razed factory accounted for 10% of the total company output. The major CMC label in the US is Memorex."
___________
Source: DailyTech

Mar 3, 2006, 08:08 PM	#1
Vikingod Int'l Fish Liaison Join Date: Jul 2004 Location: By the light of lamp I sit and type... Posts: 16,197 Rep Power: 112 System Specs	CMC Factory Fire To Hurt CD-R Prices This Year "As if the CD-R industry needed one more reason to hike up prices again: one of CMC's principle factories burns to the ground One of the largest CD-R manufacturers, CMC Magnetics, just lost the capacity to fill 9 million units of CD-R media over the next few months. A fire broke out at one of the smaller production facilities in Taiwan, rendering it completely useless until the equipment is replaced. CD-R prices have already been on the rise as companies such as Ritek and Mitsubishi Chemical exit industry in favor of the more lucrative DVDR industry instead. Royal Philips Electronics recently changed the licensing scheme of CD-R media to reduce the cost per disc, but with less media on the market spindle cost will inevitably increase. CMC Magnetics is responsible for nearly 20% of the world's CD-R demand, and the razed factory accounted for 10% of the total company output. The major CMC label in the US is Memorex." ___________ Source: DailyTech