ATS secures CDN $20.3 million in automation systems
orders for use in flat panel display manufacturing
TSX: ATA
CAMBRIDGE, ON, Aug. 26 /CNW/ - ATS Automation Tooling Systems Inc. today
announced it has received US $15.5 million (CDN $20.3 million) in orders to
design and build a number of fully-integrated, automated manufacturing lines
for a major supplier of flat panel display materials.
The systems are scheduled to be built and delivered to the customer's
production plants in Asia in stages over the next 11 months. The orders are
for a number of automated manufacturing systems that will be similar to
previous systems ATS has built for the same customer in the recent past. Some
of the systems will incorporate new concepts and enhanced vision inspection
technology, developed by ATS, to achieve higher inspection rates and enhanced
yields.
"Over the past five years, ATS has devoted significant resources to
expand our process knowledge, build our technology base, and generate greater
awareness for our unique customer-focused solutions in the flat panel display
market," said Klaus Woerner, ATS President and Chief Executive Officer. "As
this major order demonstrates, our deliberate, strategic market development
investment is paying off handsomely. This large new assignment adds
substantially to our order backlog and will make use of a number of our
capabilities, including high accuracy and high speed vision inspection,
precision material handling of highly fragile materials, and state of the art
software analysis and process control tools for complex automation."
The assignment was secured by the Company's US West Coast operations,
which have proven expertise in flat panel display applications, but ATS's
overall depth of capabilities and its global presence - which includes an
expanding footprint in Asia - were all instrumental in helping the Company to
win this significant project. ATS will primarily use the resources of its US
West Coast and Asian operations to build these systems under the contract.
Based on discussions with the customer, ATS believes there is potential for
additional significant follow-on orders in the future. The name of the
customer cannot be disclosed because of confidentiality arrangements.
Added Mr. Woerner: "This order validates the strategic market development
approach we've taken to target and align ourselves with the best customers and
it reinforces our position as a leading automation solutions provider in the
global flat panel display industry. It also helps to improve the utilization
of strategic ATS facilities in regions that have faced economic and market
challenges over the last couple of years."
About the flat panel materials market
Flat panel display shipments are estimated to be worth US $32.5 billion
annually, currently representing about half of the total electronic display
market. Through 2007, forecasts indicate the flat panel display market will
grow at an average annual rate of almost 18% compared to 12% for the total
electronic display market. Display materials experienced shipments of
US $12 billion in 2002 and are projected to grow to approximately
US $23 billion by 2008.
ATS has been active in the computer-electronics market since 1978 and in
the flat panel display segment since 1995. Over the past five years, ATS has
generated over $870 million in revenues from computer-electronics customers.
Corporate Description
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. ATS is
also an emerging leader in the rapidly growing market for solar energy cells
and modules. ATS employs approximately 4,100 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 growth prospects for the business and the
impact of changes in management. 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, Executive Vice President, Chief Operating Officer and Chief Financial Officer, (519) 653-6500