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Photowatt Output Impacted by Employee Concerns Over Restructuring Plan
ATS Automation Posted 02/21/2011CAMBRIDGE, ON - ATS Automation Tooling Systems Inc. ("ATS" or the "Company) announced that productivity at its French subsidiary Photowatt International (Photowatt France) has dropped in reaction to the Photowatt France proposed restructuring plan. Actual output in January 2011 reduced to 3 megawatts, roughly 55% of planned output. Management is working closely with the employee works council to address productivity. The restructuring plan, which was announced on January 5, 2011 to the Comité d'Entreprise (employee works council), may result in an overall headcount reduction of approximately 95 at its facility in Bourgoin-Jallieu, France. Photowatt France plans also contemplate that approximately 136 temporary positions may be discontinued.
ATS Automation 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 life sciences, 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 3,000 people at 21 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.
Notes to Readers:
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: management working closely with the employee works council to address productivity; a restructuring plan; and potential headcount reduction. 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; impact of factors such as increased pricing pressure and possible margin compression; foreign currency and exchange risk; the availability and possible reduction or elimination of government subsidies and incentives for solar products in various jurisdictions; the risk that adverse employee reaction continues with corresponding negative impact on production and the business; the risk that the restructuring plan or other future actions taken by Photowatt would not be sufficient to address the competitive pressures faced by Photowatt; that potential overall headcount reduction or discontinuance of temporary positions is other than as contemplated; 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 other than as required by applicable securities laws, ATS does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change.
For further information:
Maria Perrella, Chief Financial Officer
Carl Galloway, Vice-President, Treasurer