Sony DADC has confirmed to MBW that it is to shut its main plant in Mexico, as well as its head office in Costa Rica.
The closures are a result of ongoing global cost-cutting measures from parent company Sony Corp.
The Mexico production facility, which manufactures CDs, DVDs and Blu-Ray discs, is located in Tlalnepantla, Mexico and employs around 200 people.
Sony DADC clients include Sony Music and Universal Music. In addition to physical disc fulfillment, it offers digital supply chain management.
Mexico is the 14th biggest recorded music market on the planet, according to IFPI statistics.
In 2013, the market’s physical sales contributed US $68.2m to the industry, claiming 51% of all revenues.
“In light of the current economic environment and challenges facing the physical media industry, Sony DADC is taking additional steps to reduce cost from our supply chain network in order to remain competitive,” a Sony Corp spokesperson told MBW.
“As part of this process, the Tlalnepantla (Mex) Manufacturing & Distribution facility and the Costa Rica office will be closed and all operations at these locations will cease over the next three to four months. As a result of this closure, all operations staff positions will be eliminated.”Music Business Worldwide
