in Hutchinson Hutchinson Technology Inc. is planning to open a plant in Thailand to manufacture suspension assemblies for disk drives.
The company has not yet set a date for opening the plant, but the location would probably be in the Bangkok area, where Hutchinson Technology already operates a distribution hub and inspection service for its customers.
“The plan is to start with a small core operation, probably less than 150 employees,” said Connie Pautz, the company’s corporate communications director.
The company aims to maintain its competitive edge with the new plant, which will be used for final assembly of suspension assemblies. Pautz said 90 percent of the company’s customers are in Asia, so shipping costs will be reduced with the Thailand plant. That nation’s labor costs and taxes also are favorable, she said.
Pautz said jobs in Hutchinson would not be affected. “It doesn’t change Hutchinson,” she said. “We have all the new product and process development here in Hutchinson.”
The Hutchinson plant also fabricates raw materials for suspension assemblies and does no final assembly.
Hutchinson Technology’s plants in three other Midwest cities also will not be affected, she said. “This is a long-term operation, and we believe our industry will continue to grow and so will our capacity,” she said.
The location of the Thailand site was disclosed Thursday during the company’s quarterly earnings conference call with investment analysts. Kathleen Skarvan, president of the company's Disk Drive Components Division, said the company needs to maintain its cost leadership as it increases production of its TSA+ line of suspension assemblies, which meets customers’ demands for miniaturization.
For the full story, see the print edition of the Tuesday, Nov. 11 Leader.
(Doug Hanneman is editor of the Hutchinson Leader. He may be reached at [email protected])
Perennially judged as one of Minnesota’s and the nation’s best community newspapers, the Hutchinson Leader serves 20 communities in McLeod, Meeker, Renville, Sibley and Wright counties. 
When one business leaves another replaces it... like Runnings replacing Hennens. No more recliners... bring on the rabbitt cages!
Geeze, I feel like I am in the middle of Hobbitland and you are a hobbit.
The discussion of economy as a reason to leave stikes deep all across America.
The long standing company that built the greats like the Golden Gate Bridge just folded up. Their lender was China, who has no care who they were and what they did, do, or can do. They called in the loan and bye bye.
The 7,000 lawyers just layed off in the same city, where political change brings about social change, and hampers employment opportunity, is as key to this story and community as every other Community seeing empty business buildings everywhere.
When people stop a business practice in a community, no fresh business is headed in to save the day.
The attrition is here, as well as everywhere, and yes, vast numbers of American Countries are outta here with employment opportunity.
What spurred their leaving, was certainly not a bright future here.
I am glad that your subscription to the National Enquirer is serving you well.
Our country is still a great place. We have survived WWI, WWII, and George W!
You seem to be a sleepy dreamer.
APC moved to Denmark long ago, and I had hoped they would accept my resume there. I filed for a Danish work permit during the summer. Not yet.
I am like the Great grandfather of yours. I see no land of opportunity here, and must take my family to one. If I can get an Irish work permit, I am there the day it comes.My company has promised a job , if I take the initiative to arrive.
In Germany, only the people that lived, saw what was coming in racial divide and got out. Years later in Germany, people saw what socialism was denying them and left.
Did you hear Arnold Schwarzenegger's speech a week ago?
You can type in his name and utube to hear it.
He left Austria 2 decades ago because of socialism. There were no jobs, no opportunity to open or run business, and no success stories, so he left.
The Great America was a wonderful place once. The Capitalism which drew all here, is now going to socialism. Look around you, wealth and workers are leaving.
You can tell your grandchildren what you remember of it, as will I.
The Hispanic work force that makes up many of our labor or service jobs like roofers, painters, and landscapers work very hard for wages that are meager. I do agree with you, I have wondered what we did before we had such workers. My grandfather tells me stories when white folks did these jobs, I think grandpa must be teasing... I keep wondering where these folks have gone too. Every once in-a-while I think i have seen some of them standing around in groups of 6 or 8 in little circles holding shovels.
As far as getting a disease, keep your "junk" to yourself and you won't have to worry.
I thought you may have missed my entry that stated my company is going to Ireland.
Mexico is not a great place for company security.
A Shutter Company discovered this the hard way. The employer sought to use NAFTA and hire a good Mexican manager for the standard salary of a good manager in America when NAFTA first surfaced.
He was told that he could not pay the Mexican that wage, they would not allow it.He must pay only the pennies they allow there. The American business owner pointed out to the official that his company would have better employees and more security if he paid the American rate for a manager. The response was that they could not insure that his business would not burn to the ground if he did not comply.
End of NAFTA idealism for the ugly Americans.
Even the timeshare industry finds the American salesmen cannot wait to get out and come home from Mexico, or relocate off Continent.
To run a company, picking a safe Foreign location means not paying excessive fees to corrupt officials.
I mean if the employer doesn't want to pay it to the new America, why would they pick a similar circumstance in Mexico?
The odd voter who showed only a Mexican ID to receive a provisional ballot won.
Obama has promised to grant citizenship to anyone in the Country by a Presidential decree.
Your problem is the following:
Try to get a work permit in Mexico as an American. You cannot easily accomplish that task. If you are caught working illegally there, you are jailed.
You can stay and enjoy your new diseases leaching into community health through undocumented border crossers. I will find peace and security in Europe, unless a better offer comes in from Asia.
There is no failed company, (except in your head). Your crystal ball knowledge about the company has fog in it.
The company is quite successful and actually is a guy who came from Europe about 35 years ago, with his plan and ideas.
His average product is in high demand and markets for apprx. 30k per unit. He ships to International companies.
I am sure he will still sell to every American customer requiring the company's products. (Customers include grocery stores, broadcast communications, hospitals, banks, anywhere that must retain power when electricity grids go offline) The difference to the American consumer will be large increases in freight and shipping costs, along with delay times.
The owner was not affected by any Bush administration policy, but states he will not stay in an "Obama redistribution of his wealth" program.
He did not initially try his project in European socialism, because it would not have been sucessful. He came to the USA and brought employment and commerce to a void in a welcoming community.
Business practice is not moral or patriotic, it is money. How to make and keep money is a Capitalist's objective. Why struggle to make money and never get to keep any for it? He cannot grow or conduct R&D; under an Obama plan.
Failing business here, is the misconception you have.
These businesses were successful, and will remain so, but not here.
It is the American employee who will learn what an overhang and a bread line is. I guess you could call it voting better.
Americans should intend to apply immediately, for any workers card they must, to stay current and hireable where employers are going.
I have no intention of staying to suffer through the next 4 years, when there is no tax base to get my unemployment benefit and welfare from.
I will do what my employer did 35 years ago, and take my talent and dream of success to a County that is open to rewarding it.
Europe has learned it's lesson and is changing to what we were. We are becoming what they were. The World Changes, and so must employed people.
Socialism is what a successful person flees from. WHY? It doesn't work.
Do i feel bad about your job and your company, i most certainly do, but to point your finger at Obama seems childish. Talk to your bosses, certainly they have cut a better deal for themselves without thinking about you and all of their workers.
Many companies have been outsourcing jobs for a long, long time. Volkswagens for example are made in Mexico, this has been going on for many years. When Obama was in second grade companies were outsourcing, perhaps he should have been serving recess detention to teach that kid a lesson!
The dreamers hope Obama will not bury business further in tax debt in the United States of America.
The doers are leaving. My own company just announced after the election, that it is closing. In February they will relocate and reopen in Ireland where taxation is 11%.
Hedge funds are also leaving the American scene.
They will leave and bring capital to other stock markets in the World.
What is the loss to this Country's tax base if just hedge funds leave, A trillion dollars?
Obama won the election, but American business has lost all confidence.
I hope any company who outsources jobs lose all tax breaks and government specials!