Bruce Power Selects ATS for Innovative Automated Reactor Component Removal Solution
CAMBRIDGE, ON - ATS Automation Tooling Systems Inc. (TSX: ATA) ("ATS" or the "Company") an industry-leading automation solutions provider, today announced the receipt of new enterprise Order Bookings from Bruce Power valued at approximately CAD $60 million. ATS was selected by Bruce Power to design and deliver innovative automated reactor component removal tools for their Major Component Replacement (MCR) project. ATS' solutions will enable Bruce Power to safely and efficiently remove and replace each reactor's 480 fuel channels and calandria tubes to update the reactors for continued safe and long service.
The added Order Bookings are expected to be delivered over the next six quarters. This new program includes detube production removal tools, rigorous enhanced testing, and the provision of spare replacement parts for the removal tools and is a follow-on to the original Bruce Power Life Extension Program announced in December 2016.
"The addition of these new Order Bookings demonstrates the strategic value that ATS brings to Bruce Power," said Andrew Hider, ATS Chief Executive Officer. "ATS' uncompromising commitment to the highest safety and quality standards, extensive knowledge of the nuclear industry, proven automation methodologies, and intense customer focus are the reasons why customers, such as Bruce Power, repeatedly choose ATS."
The original agreement named ATS as a supplier for strategic tooling services including key reactor tooling systems for the removal of fuel channels for Bruce Power's long-term investment program. The program includes the life extension of six units announced December 2016. ATS' long-standing relationship with Bruce Power has also included co-development of The Bruce Reactor Inspection and Maintenance System (BRIMS) system.
Supporting Bruce Power's MCR Program
ATS is supporting Bruce Power's MCR program by designing and supplying all of the automation equipment required to remove the irradiated reactor components including the fuel channels, calandria tubes and calandria tube inserts. There are multiple systems required to remove the components; all are highly automated and controlled remotely. This equipment has been designed to maximize safety during the removal process while optimizing operational resources. To this end, ATS will test the automation equipment in its new MCR Integration Facility in Cambridge that has geometries and interfaces identical to the actual Bruce Power reactor vault. "By forming partnerships with key suppliers, such as ATS, we are innovating and creating advanced robotics while securing Made in Ontario solutions for the components we will need to successfully complete our Major Component Replacement (MCR) projects and for Ontario companies to successfully compete at a global level," said Mike Rencheck, Bruce Power's President and CEO.
The Bruce Power MCR will begin in Unit 6 in 2020, followed by Units 3 through 8, extending the life of the site to 2064. Bruce Power's Life-Extension Program, which includes Asset Management and MCR, began on Jan. 1, 2016, and remains on time and on budget.
"By extending the life of the site, Bruce Power will create and sustain 22,000 jobs annually, both directly and indirectly, across the province, while also delivering 30 per cent of Ontario's electricity at 30 per cent less than the average cost to generate residential power. At Bruce Power, we power more for less," Rencheck said.
ATS is an industry-leading automation solutions provider to many of the world's most successful companies. ATS uses its extensive knowledge base and global capabilities in custom automation, repeat automation, automation products and value-added services, including pre-automation and after-sales services, to address the sophisticated manufacturing automation systems and service needs of multinational customers in markets such as life sciences, chemicals, consumer products, electronics, food, beverage, transportation, energy, and oil and gas. Founded in 1978, ATS employs approximately 3,800 people at 20 manufacturing facilities and over 50 offices in North America, Europe, Southeast Asia and China. The Company's shares are traded on the Toronto Stock Exchange under the symbol ATA. Visit the Company's website at www.atsautomation.com
Note to Readers:
Order Bookings is a non-IFRS measure and does not have a standardized meaning prescribed within IFRS and therefore may not be comparable to similar measures presented by other companies. Order Bookings represent new orders for the supply of automation systems, services and products that management believes are firm. Order Bookings provides an indication of the Company's ability to secure new orders for work during a specified period and is an indicator of future revenues the Company expects to generate based on contracts that management believes to be firm.
This news release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of ATS, or developments in ATS' business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include all disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. ATS cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements relate to, among other things, the announcement of new Order Bookings, and the anticipated timeline for program delivery. The risks and uncertainties that may affect forward-looking statements include, among others: impact of the global economy and general market performance; that the timing of completion of the enterprise program is other than expected due to reasons, including schedule changes; the customer exercising any right to terminate the program in whole or in part prior to its completion, thereby by not allowing ATS to realize the full benefit of the program; and other risks detailed from time to time in ATS' filings with Canadian provincial securities regulators. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and other than as required by applicable securities laws, ATS does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change.