DOWNERS GROVE, Ill., June 18, 2008 (PRIME NEWSWIRE) -- ATC Technology Corporation (ATC) (Nasdaq:ATAC) today announced that it is establishing a new facility in the Czech Republic to better serve its European-based and global Drivetrain customers. The Company's facility will be located on a site owned by Holding Het Zuinden bv, operating as Cross-Line International (CLI). CLI is a leading specialist supplier of medium-volume machined components headquartered in the Netherlands with facilities in the Netherlands, Belgium, Germany and the Czech Republic serving a variety of European OEMs.
In addition to leasing space, CLI will also provide local management support and expertise to ATC in establishing the new facility and will then continue to support on-going operations. Additionally, both companies have agreed to conduct joint marketing initiatives to their complimentary customer bases to support increased growth.
At the formal signing and site commencement ceremony held today at Dubnany in the Czech Republic, attended by local and national government officers and agencies, embassy officers and local press representatives, Don Johnson, Chairman and CEO of ATC said, "Some time ago we identified a need to establish a facility in mainland Europe to better meet current and future customer needs and to improve our competitive position in this important market. We specifically recognized the need to expand our capabilities to satisfy the needs of customers not efficiently reachable from our UK-based facility. By working with CLI and utilizing CLI's experience in the Czech Republic, we will be able to establish our new facility more rapidly and with more confidence than if we were to do so independently. We are planning to remanufacture engines in the new facility early in the first quarter of 2009."
"We are also excited about partnering with CLI on joint marketing programs to attract new business and customers to both companies. Our facility in the UK will continue to support existing customers as we ramp up the new facility, enhance our capabilities to meet key requirements of European and global customers, and reach out to new markets and customers through the CLI relationship, ultimately improving our competitive position in Europe. Over the next two-three years, we expect to invest approximately $6.6 million in this new facility and equipment and expect to hire 59 new employees."
Casper van Leusden, Co-owner and Executive Manager of CLI commented, "We are very excited by this new partnership that will help CLI extend our machining and raw materials sourcing capabilities to new customers across Europe. Our company is serving a variety of OEMs who are active in several industries ranging from transport (heavy duty trucks, lift trucks, trains, earthmoving), to wind energy and infrastructure.
