08.15.2001
CMC acquires Mitsubishi CD-R facilities

• Development: CMC has decided to acquire Mitsubishi’s CD-R manufacturing facilities in Ireland for almost US$10m.

• Analysis: The purchased capacity amounts to 5m units per month, 4% of CMC’s current monthly production volume. The acquisition is an effort to avoid the anti-dumping tariffs likely to be imposed by EU on imported CD-Rs.

• Primasia View: We believe flattening CD-R prices to be a more crucial issue at this juncture and reiterate our recommendation.