CAMBRIDGE, ON, Sept. 28, 2011 /CNW/ - ATS Automation Tooling Systems
Inc. (TSX: ATA) ("ATS" or the "Company") today announced that its Photowatt France
("PWF") subsidiary has reached agreements to terminate certain of its
silicon and wafer supply contracts.
As a result of the termination agreements, the Company expects that PWF
will incur charges of 17.5 million Euro in the second quarter ending October 2, 2011, including
asset impairment charges of 14.5 million Euro, representing previously paid deposits. The supply of
silicon and wafers represented by these agreements is not required to
meet current and planned manufacturing capacities. The termination agreements will eliminate commitments over the next 6
years to purchase approximately 180 million Euro of silicon and wafers
at contractual prices in excess of current spot market levels.
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, transportation 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 2,900 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.
SOURCE ATS Automation Tooling Systems Inc.
For further information:
Maria Perrella, Chief Financial Officer
Carl Galloway, Vice-President, Treasurer