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Hard disk-maker invests another $100m in Wuxi

By Xie Min (chinadaily.com.cn)
Updated: 2015-01-30

Seagate Technology, a world-leading US manufacturer of hard disk drives, signed a strategic cooperation agreement with Wuxi New District of Jiangsu on Jan 28 to add another $100 million to the registered capital of its subsidiary in the district, the Wuxi Daily reported.

As one of the earliest foreign companies settling in the Wuxi-Singapore Industrial Park, the subsidiary has undergone several expansions with an accumulated investment exceeding $500 million.

According to the agreement,the subsidiary will transform its business model from processing supplied materials to processing imported materials. The difference between the two models is that the company adopting the former model does not have the ownership of the materials and products while the latter does.

The transformation will greatly increase the added value in the production process. "The sales volume of Seagate Wuxi is expected to reach 10 million yuan ($1.6 million) in 2016," said a manager of the company.

The year of 2015 marks the 20th anniversary of Seagate settling in the city. Seagate has made substantial achievements with the support of the local government, said Dave Mosley, Seagate’s president. He also expressed his hope that both parties could continue to deepen cooperation in other fields.

"Wuxi New District is attractive to foreign investors thanks to its sound industrial environment," said an official from the industrial park. Shortly before Seagate, Global Logistic Properties, a leading provider of logistics facilities and service from Singapore, signed an agreement with the district to build an industrial park with a total investment of $140 million.

The former Wuxi New District, now known as Wuxi Xinwu district or Wuxi National Hi-tech district, was founded in 1992 and underwent administrative changes in 1995, 2002 and 2005.

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