CAMBRIDGE, ON, Jan. 6 /CNW/ - ATS Automation Tooling Systems Inc. ("ATS"
or the "Company") announced that its French subsidiary Photowatt
International (Photowatt France) has advised its Comité d'Entreprise
(employee works council) of a restructuring project, which may result
in an overall headcount reduction of approximately 95 at its facility
in Bourgoin-Jallieu, France. Under employment law in France, employee
works council notification and consultation are required for a project
of this nature. The ultimate success of such restructuring project
depends on a number of factors including the support of the employees.
Photowatt France has been facing significant competitive pressures which
have negatively impacted average selling prices. Initiatives undertaken
by Photowatt France to improve operations and lower manufacturing costs
have not offset these global pressures. Photowatt France continues to
monitor market conditions and intends to take appropriate actions in
relation to such conditions. As always, there is ultimately no
guarantee that the restructuring project and potential future actions
will offset all competitive challenges.
ATS, in relation to the contemplated separation of Photowatt France, is
continuing to work with advisors in identifying and evaluating
strategic alternatives. Conditions in the solar and capital markets,
Photowatt France performance and other factors will influence the
timing and form of separation and its impact on ATS. In this regard,
whilst ATS is still considering alternatives for the separation, the
restructuring project announced by Photowatt France is an important
step in view of the separation process.
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: a
restructuring plan; potential headcount reduction; the intention of
Photowatt to take future actions in relation to market conditions; and
contemplated separation of Photowatt France. 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
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 is other than 95;
impact of conditions in the solar and capital markets and Photowatt
France performance on the timing and form of separation; 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.
SOURCE ATS Automation Tooling Systems Inc.
For further information:
Maria Perrella, Chief Financial Officer
Carl Galloway, Vice-President, Treasurer