Eastman Kodak Company and Panasonic Disc Services Corporation today announced the formation of a new venture, Matsushita Media Manufacturing LLC of America, which will manufacture and supply optical media products to both parent companies.

The venture will be a specialized contract manufacturing organization. Panasonic will hold a 51% stake in the company, and Kodak will hold a 49% stake. Both parents will contribute financial as well as other assets, including intellectual property and technical expertise. In addition, Kodak also will contribute its optical disc manufacturing operations located in Youghal, Ireland, and Guadalajara, Mexico.

“The formation of Matsushita Media Manufacturing is an exciting opportunity that will establish a leading optical media manufacturing company,” said Bob Pfannkuch, President, Panasonic Disc Services Corporation. “By combining the strengths of Kodak and Panasonic, we will be able to reach a larger portion of the world market. Plus by drawing upon the in-depth technical knowledge of the two companies, we will undoubtedly develop new uses for DVD and CD-R media. We look forward to working with Kodak to expand the DVD World concept.” Mr. Pfannkuch will be the president of the new company.

According to Willy Shih, president of Kodak’s Digital & Applied Imaging business unit, “The establishment of Matsushita Media Manufacturing LLC of America, will create a formidable manufacturing capability in optical media for sound, video, and data recording. The new company will result in the expansion of Kodak’s world-class manufacturing facilities in Guadalajara and Youghal to produce a range of new optical media products based on DVD technology.”