As part of these measures, the company will consolidate its US grid manufacturing and product development program and diversify its international wind power manufacturing operations.
AMSC also expects that it will be net cash flow positive for the fourth quarter of fiscal 2013 ending 31 March 2014, exclusive of proceeds, if any, from sales of stock under its at-the-market facility.
As part of consolidation of its Gridtec Solutions, the company expects to close its facility in Middleton, Wisconsin by 31 December 2014 and transition it to its headquarters in Devens, Massachusetts.
The company, which noted that its New Berlin facility remains unaffected, is also establishing a wind turbine electrical control systems manufacturing center in Timisoara, Romania, as part of its wind power manufacturing operation diversification.
The Timisoara plant is set to be operational in fiscal 2014 and will make electrical control systems for AMSC’s wind customers located outside of China.
As a result of these actions, the company expects to reduce its net headcount between 5% and 10% by 31 December 2014.
During this period the company hopes to record restructuring and other charges associated with these actions for severance, facility closure, relocation, operating inefficiencies, and other costs ranging between $4m and $6m.
