History (1998): MKQC Dissolved

Quantum and Matsushita-Kotobuki Electronics Industries in Japan have decided to dissolve MKQC, their recording heads joint venture based in Shrewsbury, MA.

The US-based wafer development and associated operations located in Shrewsbury and Louisville, CO, are now up for sale.

From now on, MKE will solely own and operate the slider fabrication and assembly operation in Batam, Indonesia.

Quantum acquired this MR heads activity with its 1994 purchase of Rocky Mountain Magnetics, a joint venture between Digital and StorageTek. A joint venture between MKE and Quantum was subsequently formed in May 1997, under the name MKE-Quantum Components LLC, with MKE retaining 51% and its partner holding 49%.

At the time, MKE brought $200 million in cash, $90 million for Quantum and $110 million for the venture, which eventually went south.

For the quarter ending in June, MKQC recorded sales of $16 million for a net loss of $49 million.

Both partners preferred to minimize the damage, particularly given that there is a glut of MR head offerings on the merchant market this year.

This article is an abstract of news published on issue 129 on October 1998 from the former paper version of Computer Data Storage Newsletter.