AMSC to make wind turbines components at new Romanian plant

Wind turbine parts maker AMSC is opening a new production center in Romania to make wind turbine electrical control systems for customers outside of China.

The plant, in the city of Timisoara is expected to be operational during 2014/15 fiscal year.

“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,” the company said in a statement.

The announcement is part of wider changes at the company, including cutting 5-10 percent of its workforce by the end of the year and shutting its Middleton plant in Wisconsin , moving the operations to its headquarters in Massachusetts.

In a statement, the company said it estimated the restructure would save USD 3 million, starting in the fourth quarter of fiscal 2014.

Shares of AMSC, which also estimated a smaller adjusted loss for the fourth quarter ending March 31, rose as much as 10 percent in noon trading on the Nasdaq, according to Reuters.

Mainly supplying electrical systems used in wind turbines, the company had 362 employees as of March 31.

AMSC estimated an adjusted loss of 14-16 cents per share (or USD 10 million to USD 12 million) for the current quarter compared with 21 cents per share reported a year earlier.

Also for the current quarter, the company estimated revenue of USD 14 million to USD 16 million, down from USD 20.4 million posted a year earlier.

AMSC also expects to record restructuring charges of about USD 1 million in the quarter.