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ATS Confirms Notice of Solar FIT Application Approvals in Ontario
ATS Automation Posted 04/09/2010
ATS Automation Tooling Systems Inc. reported today that it has been notified by the Ontario Power Authority ("OPA") that a number of Ontario Feed-in Tariff ("FIT ") applications in the Company's solar development pipeline have been approved by the OPA.
Last year, ATS announced that it would lever its global solar expertise, and almost one million square feet of facilities and 900 employees in Ontario to advance the Ontario solar market by:
- Developing solar projects;
- Offering complete solutions to installers and developers, with the ability to meet domestic content requirements;
- Building modules in Ontario; and
- Designating a "green wing" and inviting others to collaborate.
ATS has been actively pursuing its plan. It has developed and is installing a state-of-the-art module manufacturing line in Cambridge. The first phase of the line is expected to be operational within the next few months.
Yesterday's OPA announcement includes FIT approvals totalling approximately 65 megawatts related to large scale renewable energy applications made by a project development joint venture in which ATS holds a 50% interest. The JV will utilize a range of solar solutions, including modules manufactured by ATS in Cambridge. The JV's next steps include efforts to arrange financing and ultimate project ownership, as well as obtaining necessary JV partner approvals and other requisite approvals.
"We are very pleased to receive the notice of FIT application approvals," said Anthony Caputo, ATS Chief Executive Officer. "This is an important first step toward advancing one element of our comprehensive plan for solar in Ontario. We also are pleased that a number of other market participants have received notices and I invite them to collaborate with ATS on advancing their plans."
Today's notices by the OPA are one step in the overall FIT program. Details of the Ontario FIT Program and process are available at the OPA web site: www.powerauthority.on.ca.
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 industries such as healthcare, computer/electronics, energy, automotive and consumer products. It also leverages its many years of experience and skills to fulfill the specialized automation product manufacturing requirements of customers. Through Photowatt, ATS participates in the growing solar energy industry. ATS employs approximately 2,400 people at 13 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.
Note to Readers: Forward-Looking Statements
This news 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 develop solar projects; the offering of complete solutions to installers and developers with the ability to meet domestic content requirements; the building of modules in Ontario; designation of a "green wing" and the invitation to others wishing to participate; anticipated timeline for operation of the module manufacturing line; solutions anticipated to be used by the solar joint venture; efforts to arrange project financing, ultimate project ownership and to obtain necessary JV partner approvals and other requisite approvals; and invitation to other market participants to collaborate. The risks and uncertainties that may affect forward-looking statements include, among others: general market performance including capital market conditions and availability and cost of credit; economic market conditions; delays in establishing production capacity; ability of ATS to acquire the needed expertise and financing necessary to effectively develop solar projects, and ability to do so within the required timelines; the financial attractiveness of, and demand for, those solar projects; the ability to identify and conclude a sale of the solar projects with ultimate purchasers and the timeliness thereof; ATS's ability to conclude relationships with third parties in order to implement its plans; extent of market demand for solar products; the availability of needed supplies; failure to, or delays in, obtaining necessary JV partner approvals and other requisite approvals; the availability and possible reduction or elimination of government subsidies and/or changes to domestic content requirements; ability to obtain necessary government certifications and approvals for solar projects in a timely fashion; ability to meet FIT contract requirements; political, labour or supplier disruptions; potential inability of ATS to achieve improvements in cell efficiency, including problems with the technology or commercialization thereof; the development of superior or alternative technologies to those developed by ATS; the success of competitors with greater capital and resources in exploiting their technology; market risk for developing technologies; and other risks detailed from time to time in ATS's filings with Canadian provincial securities regulators. 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.