PHOTOWATT FRANCE ANNOUNCES RESTRUCTURING PROJECT
January 06 2011 - 9:20AM
PR Newswire (Canada)
CAMBRIDGE, ON, Jan. 6 /CNW/ -- TSX: ATA 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. About ATS
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: 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: 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. To view
this news release in HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/January2011/06/c8910.html
pMaria Perrella, Chief Financial Officerbr/ Carl Galloway,
Vice-President, Treasurerbr/ 519 653-6500/p
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