KLAGENFURT, CARINTHIA, AUSTRIA -- AT&S will close its printed circuit board fabrication plant here later this year due to dwindling sales, the company said.
"The Klagenfurt facility is no longer in a position to cover costs and is set to close at the end of 2013," the firm said in a release today.
The fate of the 109 employees will be determined following negotiation with the Austrian government and the workers.
AT&S acquired the site in 2003 after its previous owner, AIK Electronics, declared insolvency.
The plant primarily built single-sided PCBs, which are no longer in sufficient demand, making it expendable, AT&S CEO Andreas Gerstenmayer said. Europe’s share of the global single-sided PCB is less than 5%, AT&S said.
“Despite pursuing all of the options open to us, we were unable to bring capacity utilization to an economically viable level in Klagenfurt. As a result it will not be possible to significantly improve the long-term earnings situation at the plant."
The fabricator indicated that the remainder of AT&S Group’s production facilities have a positive outlook.