ATS expands Asia-Pacific presence in support of customer
base, standard products initiative
TSE Symbol: ATA
CAMBRIDGE, ON, Oct. 16 /CNW/ - ATS Automation Tooling Systems Inc., the
world's leading industrial automation company, today announced it is adding to
its capabilities and presence in China and Malaysia.
The expansion will see the Company open a 10,000 sq ft satellite
manufacturing facility in Wuxi, China to capitalize on strong growth potential
in this rapidly expanding industrial region located 150 kilometers from
Shanghai. The addition of the Wuxi facility brings total ATS operating space
in Asia-Pacific to approximately 55,200 square feet. Total cost of this
expansion - including the addition of fabricating capabilities at the ATS
facility in Penang, Malaysia - is expected to be less than $1 million and will
be completed over the next few months.
"While these are small additions cost-wise for ATS, from an operating
perspective, we will gain solid advantages from committing to these projects,"
said Klaus Woerner, ATS President and Chief Executive Officer. "By fortifying
our Asian presence, we expect ATS to be in a better position to capture and
efficiently supply our automation solutions to companies in all sectors, most
particularly computer-electronics and increasingly automotive component
manufacturers. This investment will also enhance service for our existing
multinational customers who are expanding operations in the area and who are
placing greater emphasis on China as a source, not only of low cost labour,
but as a vast consumer marketplace for their products."
Although low-cost labour is abundant in the region, many global companies
are electing to establish 'lean automated manufacturing' processes at their
production facilities in China in an effort to reduce production costs, while
maintaining or enhancing product quality. Lean processes rely on a combination
of automation - for critical tasks requiring high precision and process
consistency - and manual labour where economics dictate. This trend in lean
automated manufacturing, coupled with greater interest in China as a consumer
market, is creating opportunities for ATS with its global customer base.
To put the importance of Asia-Pacific in perspective, Mr. Woerner said
ATS "generated $147 million in revenue in the region over the last five years.
We believe, given the increasing willingness of China to participate in world
trade, that we will see outstanding opportunities for growth here in the years
ahead."
With the addition of the Wuxi facility, ATS is now better positioned than
ever in the region. With its regional headquarters for Asia-Pacific in
Singapore (where it operates a 22,000 square foot facility), ATS operates
satellite manufacturing facilities in Tianjin and Shanghai, China and Penang,
Malaysia.
New Standard Products Initiative in China
Mr. Woerner said the Company also plans to make its Asia-Pacific
facilities "a manufacturing center for some of our standard ATS products. We
believe the workforce we've assembled in China and Malaysia can further reduce
the cost of building these standard products in quantity. As our worldwide
operations increasingly utilize ATS standard products as integral parts of our
automated solutions, this move will provide us with a further cost advantage.
In short, this will further reduce the total cost of ownership of ATS
automated solutions and enhance the investment payback for our global
customers."
ATS's automation systems business has had a direct presence in Asia-
Pacific since 1996. ATS is able to offer a wide range of automation solutions
- plus contract manufacturing on a build-to-print basis - through these
facilities. According to the National Bureau of Statistics, China's economy
grew 7.3% in 2001 and various forecasts suggest these high growth rates will
continue for at least the next five years. Shanghai, for example, is
forecasting growth of 10-11% in each of the next five years.
About ATS
ATS Automation Tooling Systems Inc. (www.atsautomation.com) is the
industry's leading designer and producer of turn-key automated manufacturing
and test systems, which are used primarily by multinational corporations
operating in a variety of industries including: automotive,
computer/electronics, healthcare, and consumer products. The Company also
makes precision components and sub-assemblies using its own custom-built
manufacturing systems, process knowledge and automation technology. Through
Photowatt International S.A., and Spheral Solar Power Inc., ATS is an emerging
leader in the rapidly growing market for solar energy cells and modules. ATS
employs approximately 3,200 people at 26 facilities in Canada, the United
States, Europe and Asia-Pacific. The Company's shares are traded on The
Toronto Stock Exchange under the symbol ATA.
Certain forward looking statements are made in this news release,
including statements regarding possible future business. Investors are
cautioned that such forward-looking statements involve risks and
uncertainties, including, without limitation, continued acceptance of ATS's
products, technologies, customer requirements and other risks detailed from
time to time in ATS's periodic reports filed with Canadian regulatory
authorities.
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For further information: Ron Jutras, Chief Financial Officer, (519) 653 6500 To request a free copy of this organization's annual report, please go to http://www.newswire.ca and click on reports@cnw.
© 2002 Canada Newswire Ltd.