ATS to expand presence in France with new automation
facility
TSE Symbol: ATA
CAMBRIDGE, ON, Oct. 21 /CNW/ - ATS Automation Tooling Systems Inc., the
world's leading industrial automation company, today announced it is starting
construction on a new automation systems facility in Bourgoin-Jallieu, France.
The new 91,000 square feet manufacturing plant will be located on a 8.6
acre site and will replace ATS France's two outmoded leased facilities
(together 65,000 square feet) also located in Bourgoin-Jallieu, just outside
of Lyon, France. The new plant will be ready for occupancy in the fall of
2003. ATS has received a $590,000 grant and a low interest rate loan for
approximately $300,000 from the city of Bourgoin-Jallieu, the department of
l'Isère and the region Rhône-Alpes to defray the total estimated $6.5 million
cost to acquire the land and build the facility.
"This expansion sends a strong message to our European customers that ATS
is absolutely committed to serving their long-term needs from a state-of-the-
art, purpose-built manufacturing plant, strategically located in a key region
of France," said Klaus Woerner, ATS President and Chief Executive Officer. "By
deploying this capital now to expand our presence, ATS is once again
demonstrating leadership and ensuring it has the scope necessary to
accommodate future growth, without the constraints found in these
dysfunctional, leased facilities. The consolidation will allow us to improve
the efficiency of our automation systems workforce in France. The new building
will have the right specifications to handle even larger customer projects,
and the site provides us with the option to expand the plant in future when
needs dictate."
ATS France was formed as a result of the acquisition of the assets of the
French automation systems division of ALSTOM in December, 1999. Since then,
revenues have grown strongly and in its last fiscal year (12 months ended
March 31, 2002), ATS France generated automation systems revenue of $27
million, compared to annual revenues of approximately $15 million at the time
of the acquisition.
ATS is a major employer in Bourgoin-Jallieu, with a total workforce of
approximately 435 people, 80 of whom work at ATS France. ATS's solar
subsidiary, Photowatt International, employs the majority of the Company's
workforce in the area, and its facility will be unaffected by today's
announcement.
"We commend the local and regional governments for partnering with ATS on
our investments," said Mr. Woerner. "As their economic assessment showed, this
is a win-win situation for both parties. Looking to the future, we expect ATS
will capitalize on its upgraded presence in France to better serve customers,
while adding employment for skilled people and increased sales and earnings
for our shareholders."
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.
%SEDAR: 00002017E
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.