VIENNA, AUSTRIA – The largest European-owned PCB fabricator, and a top 20 worldwide producer, AT&S, announced it is shifting production from Europe to Asia. The company stated it would also be “improving efficiency levels in Austria.”
According to the company, the current economic climate has resulted in price driven purchasing. As a result, volume manufacturing of HDI products is no longer cost effective in Austria.
Volume production from the Leoben-Hinterberg site will be transferred to Asia, reducing production volume of PCBs from 130,000 square meters to 70,000 square meters.
Moving forward, the Leoben-Hinterberg site will focus on European market requirements. As a result of the transfer of volume production, the staff in Austria will be cut by about 300.
The actions are expected to incur a one-time restructuring expense of up to €40 million that will negatively impact the 2009/10 financial year. Further, the company will be reducing capital expenditures by 33.3% to approximately €20 million.