ATS announces strategic consolidation of PCG plastics capabilities
CAMBRIDGE, ON, Oct. 19 /CNW/ - ATS Automation Tooling Systems Inc. today
announced it will consolidate its Bowmanville, Ontario precision plastic
injection moulding capabilities into existing Precision Components Group (PCG)
facilities in Shanghai, China and Cambridge, Ontario.
ATS's Micro Precision Plastics (MPP) division specializes in micro
precision plastic injection moulding and currently employs 88 people at its
34,000 sq. ft. leased facilities in Bowmanville, Ontario. MPP's revenues were
approximately $12 million in fiscal 2006.
This phased-in consolidation of the MPP operation is expected to be
complete by the first quarter of fiscal 2008. Management expects one-time
costs associated with consolidating this business, including employee,
relocation and other expenses, will reduce the Company's operating income by
approximately $1.8 million.
"The transfer of this business is another important step in streamlining
and strengthening PCG operations and focusing our capabilities where they can
add the most value for our customers and shareholders," said Bruce Seeley,
Vice President, Precision Components Group. "In North America, this
consolidation reduces our cost base while intensifying our injection moulding
capabilities for customers who require a one stop, fully-integrated solution.
For our China operations, it adds additional critical mass and a more
extensive range of capabilities to attract new multinational customers in this
rapidly expanding market for manufacturing."
About ATS
ATS Automation Tooling Systems Inc. provides innovative, custom designed,
built and installed manufacturing solutions to many of the world's most
successful companies. Founded in 1978, ATS uses its industry-leading knowledge
and global capabilities to serve the sophisticated automation systems' needs
of multinational customers in healthcare, computer/electronics, automotive and
consumer products. Through its solar business, ATS participates in the
rapidly-growing solar energy industry. It also leverages its many years of
repetitive manufacturing experience and skills to produce, in high volume,
precision components and subassemblies and to answer the specialized
repetitive equipment manufacturing requirements of customers. ATS employs
approximately 3,800 people at 26 manufacturing facilities in Canada, the
United States, Europe, southeast Asia and China. The Company's shares are
traded on the Toronto Stock Exchange under the symbol ATA. Visit the Company's
website at www.atsautomation.com.
Note to Readers
This press release contains certain statements that constitute
forward-looking information within the meaning of applicable securities laws
("forward-looking statements"). Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause the actual
results, performance or achievements of ATS, or developments in ATS's business
or in its industry, to differ materially from the anticipated results,
performance, achievements or developments expressed or implied by such
forward-looking statements. Forward-looking statements include all disclosure
regarding possible events, conditions or results of operations that is based
on assumptions about future economic conditions and courses of action.
Forward-looking statements may also include, without limitation, any statement
relating to future events, conditions or circumstances. ATS cautions you not
to place undue reliance upon any such forward-looking statements, which speak
only as of the date they are made. Forward-looking statements relate to, among
other things, ATS's intention to consolidate its Bowmanville operations into
existing facilities; timing of completion of the consolidation; expected
reduction in operating income due to one-time costs associated with the
consolidation; and benefits to be derived from the consolidation. The risks
and uncertainties that may affect forward-looking statements include, among
others, general market performance; demand for the products manufactured by
this business; delays due to customer requests for additional product prior to
the consolidation, potential delays and costs related to equipment relocation
and installation, or delays due to other circumstances; lack of increased
demand in response to the consolidation; potential loss of customers,
unanticipated increases in the one-time costs, including those related to
employee severances and relocations; labour disruptions; and other risks
detailed from time to time in ATS's filings with Canadian provincial
securities regulators, including ATS's Annual Report and Annual Information
Form for the fiscal year ended March 31, 2006. Forward-looking statements are
based on management's current plans, estimates, projections, beliefs and
opinions, and ATS does not undertake any obligation to update forward-looking
statements should assumptions related to these plans, estimates, projections,
beliefs and opinions change.
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For further information: Carl Galloway, Vice President and Treasurer, Gerry Beard, Vice President and Chief Financial Officer, (519) 653-6500