Dallas, Texas 03/20/2014 (FINANCIALSTRENDS) – American Superconductor Corporation (NASDAQ:AMSC) has announced it plans to shut down its Middleton manufacturing unit by end of the year. The plant currently produces voltage regulation and control device for use on the electric transmission grid. After the shut down, the Middleton’s operations will be moved to company’s headquarters in Devens, Massachusetts. The company also reported that it plans to downsize the staff around 10% by December, 31. Currently, there are 362 employees. After shutting down the Middleton unit, the company also plans to re-locate Middleton employees to it headquarters in Devens.
According to the reports the plant shut down was part of company’s strategic operational initiatives and also it is expected to save the company’s annual cost of approximately around $3 million during the quarter. Their China plant will carry on supporting the local market. As part of diversification plan pertaining to wind power manufacturing operation, it will be setting up a new wind turbine electrical control systems production center in Timisoara, Romania. With this the company plans to reach out customers out side and also expand its market in Eastern Europe. The company reports also state that their New Berlin facility will not be impacted.
China’s court Supports American Superconductor Corporation On Software Copyright Breach cases
American Superconductor Corporation (NASDAQ:AMSC) has announced that its appeal regarding the transfer of case related to copyright violation to the Beijing Arbitration Commission has been upheld by China’s Supreme Court. The company had filed two software copyright breach cases against Sinovel Wind Group, Ltd and Guotong Electric during the year 2011. These are the 2 cases out of 4 which pertain to contractual breaches filed by the company against Sinovel. It is also reported the company has filed a trade secrets case and commercial arbitration case against Sinovel in China.