AT&S’s New Strategy for Leoben-Hinterberg Facility Bearing Fruit – Strong Demand from Europe Means Lower-Than-Planned Capacity Reduction

The transition of Austrian AT&S’s Leoben-Hinterberg facility’s new strategic focus on European
business and away from volume production for global markets has been largely completed. Extremely
successful sales and marketing activities and gains in market shares allow more capacity to be retained
at the site than recently planned. Annual production capacity – in terms of circuit board surface area –
will be 85,000m² instead of 70,000m², and 700 people will be employed, rather than 600. This is convincing proof of the success of the new strategic direction.

Increased pressure on prices compelled AT&S to announce a radical downsizing of the Austrian plant in June
this year and to transfer its entire volume production from Leoben-Hinterberg to the Shanghai facility. The
intensive efforts of the sales and marketing organisation to compensate the loss of volume business in Leoben-Hinterberg by orders of European customers have been bearing fruit in the meantime. Not least because of the continuing market rationalisation, AT&S has been able to win additional orders so that the reduced capacities are now well-utilised. Based on current market information, AT&S’s management expects continuing lively demand for Leoben-Hinterberg’s high-tech products for the European market.

Production capacities – measured in terms of circuit board surface area produced – will now only be reduced
to 85,000m² annually, rather than the 70.000m² originally planned. For this capacity, AT&S can continue to employ an additional 100 people, so that Leoben-Hinterberg will be able to retain around 700 employees.
AT&S continues to be the second largest privately owned employer in the Leoben region.

“The massive adjustments required at the Leoben-Hinterberg plant initially posed considerable challenges in
production, especially with regard to quality and delivery performance. The new teams have now settled in
well, so that we have a respectable level of performance to report. This is an important achievement for the
future success of AT&S, because what our customers value – over and above the breadth of our product
portfolio, our global positioning and our stable financial position – are AT&S’s outstanding technological and
logistic capabilities,” is how Harald Sommerer, chairman of the AT&S management board, sees the current
situation.

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