AMSC, a Massachusetts-based provider of wind energy and power grid solutions, has announced plans to close a Wisconsin facility and reduce its global workforce. The company says these measures are part of strategic operational initiatives designed to better capitalize on emerging opportunities in its wind and grid businesses.
The company will consolidate its U.S. grid manufacturing and product development program and diversify its international wind power manufacturing operations.
As part of its Gridtec Solutions consolidation, AMSC expects to shutter its facility in Middleton, Wisc., by year-end and transition that unit to its headquarters in Devens, Mass. The company says it plans to offer all employees in Middleton the opportunity to relocate to Massachusetts but did not specify how many workers will be affected.
AMSC says it believes that it can most effectively leverage its Gridtec Solutions team, as well as realize important synergies in new product development, by having those employees in one location. The company's New Berlin, Wisc., facility remains unaffected.
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.
As part of its restructuring plan, AMSC also expects to reduce its net headcount between 5% and 10% by year-end. The job cuts will impact as many as 120 total employees located at its Middleton, Devens, and Suzhou, China, locations. However, the company says its Windtec Solutions product development and support efforts remain unaffected.
Once all of these actions and associated costs are completed, AMSC expects to fully realize approximately $3 million of annualized cost savings starting in the fourth quarter of fiscal 2014.
