ATS consolidates PCG plastic capabilities (November 01, 2006)

Cambridge, Ont.-based automation supplier ATS Automation Tooling Systems Inc. is consolidating its Micro Precision Plastics (MPP) division injection molding capabilities into its existing Precision Components Group (PCG) facilities in Cambridge and in Shanghai, China.

The phased-in consolidation is expected to be complete by the first quarter of fiscal 2008, ATS said. The company estimated that one-time costs associated with the consolidation – including employee, relocation and other expenses – would amount to approximately $1.8 million.

Located in Bowmanville, Ont., the MPP division employed 88 people in a 34,000 sq. ft. leased facility, and reported revenues in fiscal 2006 of approximately $12 million.

“The transfer of this business is another important step in streamlining and strengthening PCG operations and focusing our capabilities where they can add the most value for our customers and shareholders,” Bruce Seeley, PCG’s vice president, said. “In North America, this consolidation reduces our cost base while intensifying our injection molding capabilities for customers who require a one-stop, fully-integrated solution.”

ATS employs approximately 3,800 workers at 26 manufacturing facilities in Canada, the U.S., Europe, Southeast Asia and China.