Nidec buys Thailand's SC Wado

 The transaction is done through its subsidiary Nidec Electronics (Thailand) or NET. Currently, SC Wado supplies 600,000 base plates for 3.5inch HDDs and 300,000 base plates for 2.5inch HDDs on a monthly basis to NET.

 "Through this transaction, Nidec intends to secure a steady supply of base plates, which are a major component of spindle motors, to meet the increasing demand for spindle motors for hard disc drives ("HDDs") and to enhance the production capacity of its group companies in an effort to improve Nidec's overall profit structure," Nidec said in a statement.

 After the acquisition of shares of SC Wado from Salee and other shareholders, it is expected that the current management will continue to hold the remaining 10 per cent of the shares. NET intends to commence discussions with the current management regarding its purchase of the remaining SC Wado shares in the future.

 The transaction is expected to be completed on or prior to the end of February.