American Superconductor Corp., manufacturer of turbine components and superconductor products, said on Wednesday it is planning a series of restructuring moves, including moving part of its production from China to Romania.
The company plans to reduce the number of employees by between 5% and 10% by the end of the year, and it expects to record restructuring and other charges of between USD 4 million and USD 6 million, according to the Wall Street Journal.
AMSC is planning to diversify its international wind-power manufacturing operations, including opening a wind turbine electrical-control-systems manufacturing center in Timisoara, Romania, which it expects to be operational in fiscal year 2014 (which begins in april).
While the company’s China facility will continue to focus on the Chinese market, headcount will be adjusted to account for the new center in Romania making electrical-control systems for AMSC’s customers outside of China.
“By expanding its manufacturing footprint into Eastern Europe, AMSC is enhancing its distribution capabilities and its global reach in a region that is a target market for its wind and grid products. Romania is a European Union member state and cost-efficient manufacturing location with a highly skilled workforce“, according to the company’s press release.
Overall, AMSC expects to record annualized cost savings of roughly USD 3 million starting the Q4 of the next fiscal year.