WD Update:
Dear valued customer:
The torrential flooding in Thailand has claimed hundreds of lives, displaced hundreds of thousands of residents and directly and profoundly impacted thousands of businesses. Western Digital's business is one of those. We understand that this tragedy also is indirectly affecting your business and we ask for your patience while we recover our facilities and work to rebuild our production.
The human toll from the flooding is the greatest tragedy. Our highest priority is the well being of our employees. We are relieved to tell you that all WD employees are safe, although many of their lives have been severely impacted. Extensive efforts are under way to provide them with the assistance they need during this difficult time.
In mid-October we temporarily suspended production at our two factories in Thailand, which have been inundated by floodwater, to protect our employees and our equipment and facilities. We manufacture approximately 60 percent of our hard drives in Thailand. With the greatest direct manufacturing exposure to the flooded areas, the impact on our business in the short term will be greater than to other HDD manufacturers.
In addition, many of our component suppliers have been impacted, leaving material for hard drive production considerably constrained. We are working with suppliers to assess the extent of their impact and help devise short- and long-term solutions. This is a complex and dynamic problem that will require extensive rebuilding for the Thai people and government, and bring unprecedented challenges to the HDD industry for multiple quarters.
We understand that you must do everything in your power to sustain your business. Your satisfaction is very important to us. Our teams are addressing every conceivable opportunity, between our available facilities and those of our suppliers, to build the maximum volume of quality hard drives and support your business and your customers' businesses. However, limited component availability throughout the supply chain and extraordinary acts by manufacturers to bring systems back online as quickly as possible will ultimately raise the costs of some of our products.
We also have deep concern for the broader Thailand community affected by the flooding. WD, through the WD Foundation, is making significant contributions and matching donations by its employees on a one-to-one basis. We've identified the Thai Red Cross Society as the most effective means of distributing aid where it's most needed. Please consider contributing what you can to help the Thai people rebuild their lives and restore their communities:
Click on the
Donate Online button at the
Thai Red Cross Society web site (
http://english.redcross.or.th/home).
At WD we are passionate, dedicated people, and we will continue investing in the near and long term to provide you with a reliable supply of high-quality hard drives. We appreciate your understanding and patience during this crisis. As the situation evolves, we will provide you with updates.
Sincerely,
John Coyne
President and Chief Executive Officer
