Japan's Konica Minolta Holdings Inc has chosen Malaysia for its first overseas plant making platters, the key component which stores data in hard discs, a company spokesman said today.

The electronics maker said the new plant - its third producing glass platters after two in Japan - will begin operations in January next year in Malacca.

The decision comes as hard disc drive manufacturers are shifting their production bases to Southeast Asian countries such as the Philippines, Thailand, Malaysia and Singapore, said Katsuyuki Sakai, spokesman for the company formerly known for its camera business.

"As the market for hard disc drives is expected to grow at an annual rate of 20 percent with a logistical concentration in Southeast Asia, it's best for us to build a new plant in this region," Sakai told AFP .

Konica Minolta will invest about five billion yen (US$42 million) in the plant, he said.

The new factory will have initial monthly production of one million glass platters for laptop computers, portable music players and video cameras.

"We are eyeing monthly production of three million in the future," the spokesman said.

Konica Minolta announced in January 2006 that it would exit the traditional film camera business entirely, selling off its high-end camera business to Sony Corp., in a drive to return to profits.

The company, which at the time also slashed 3,700 jobs or 11 percent of its workforce, reported this month that its net profit nearly tripled in the three months to December as it focused on advanced electronic goods.