Fujitsu to stop drive-head production

Japan's Fujitsu said on Tuesday (January 27) it will shut down its hard disk drive head operation at the end of March at a cost of 5 billion yen ($56 million).

Fujitsu has been in talks with Toshiba Corp to sell its loss-making hard disk drive business, but a newspaper has reported that its Nagano plant in central Japan that makes disk-drive heads was not included.

Fujitsu spokesman Takashi Koto said the company was still discussing the future of its hard-drive operations with multiple parties. The company said the Nagano plant, which employs about 360 people, will keep operating to make printed circuit boards for servers and telecom equipment.

Fujitsu's hard drive business had an operating loss of several billion yen in the last business year, Koto said.

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