Electronics Production |
AMI plans to consolidate<br>European facilities
AMI Semiconductor, Inc. a wholly-owned subsidiary of AMIS Holdings, Inc. announced its intention to consolidate its European wafer fabrication operations to enhance operating efficiencies.
The Company intends to close its four-inch wafer fabrication facility in Oudenaarde, Belgium, and plans to consolidate operations into its existing six-inch wafer fabrication facility, also located in Oudenaarde, Belgium. The consolidation and closure of the four-inch facility is expected to be completed by the first quarter of 2007.
The Company anticipates these actions, when fully implemented, will result in net pre-tax cost savings of approximately $1.0 million to $1.5 million per quarter, starting in the first quarter of 2007. The total pre-tax restructuring charge for these actions is expected to be in the range of $20.0 million to $25.0 million, which will be predominately cash. Restructuring charges to be incurred in the third quarter of 2005 will be dependent upon the nature and timing of an agreement with the local workers' council. The remaining charges are expected to be taken on a quarterly basis through the first quarter of 2007, as incurred.
