Consolidating U.S. Grid Manufacturing and Product Development
Opening New Production Center in Romania for Global Wind Market; Manufacturing Operations in China to be Dedicated to Chinese OEMs
DEVENS, Mass., March 19, 2014 (GLOBE NEWSWIRE) -- AMSC (Nasdaq:AMSC) today announced a series of strategic operational initiatives designed to better capitalize on emerging opportunities in the wind and grid businesses. These measures include consolidation of the Company's U.S. grid manufacturing and product development program and diversification of its international wind power manufacturing operations. Separate from these steps, AMSC expects that, exclusive of proceeds, if any, from sales of stock under the Company's At-the-Market facility, it will be net cash flow positive for the fourth quarter of fiscal 2013 ending March 31, 2014, driven primarily by cash generated from working capital. AMSC believes that it must grow revenue beyond current levels to achieve sustainable positive cash flows.As part of its Gridtec Solutions consolidation, AMSC expects to close its facility in Middleton, Wisconsin by December 31, 2014 and transition that unit to its headquarters in Devens, Massachusetts. The Company's New Berlin facility remains unaffected. All of AMSC's employees in Middleton are expected to be offered the opportunity to relocate to Massachusetts. AMSC believes that it can most effectively leverage its Gridtec Solutions team, and realize important synergies in new product development, by having those employees in one location. Separately, AMSC also undertook a reduction in force in its Massachusetts facility. As part of the diversification of its wind power manufacturing operation, AMSC is establishing a wind turbine electrical control systems manufacturing center in Timisoara, Romania. Expected to be operational in fiscal 2014, the Timisoara plant will make electrical control systems for AMSC's wind customers located outside of China. AMSC's China facility will continue to support the Chinese wind market and headcount is being adjusted accordingly. Customers outside of China will continue to have their systems manufactured in China until the new facility is operational. These actions are not expected to increase overall wind manufacturing costs. The Company's Windtec Solutions product development and support efforts remain unaffected.