CPI Aerostructures Announces Major Personnel Reduction at Its Upstate New York Kolar, Inc. Facility; Continued Strength in Its Aircraft Segment
EDGEWOOD, N.Y., Dec. 13 /PRNewswire/ -- CPI Aerostructures, Inc. (Amex: CVU) announced today that its Kolar subsidiary will reduce its workforce by over 75%. Kolar is located in Ithaca, New York. This measure, which will be effective immediately, will reduce Kolar's employment level to approximately fifteen people.
"We did not reach this decision easily," stated CPI's CEO Arthur August. "The electronics manufacturing industry has not demonstrated any signs of recovery since its dramatic downturn in the fourth quarter of last year, and has significantly impacted Kolar's financial capabilities. We believe it has become necessary to take this and other cost-cutting measures in order to evaluate Kolar's viability as a going concern in the precision-machining industry.
"While this is an unfortunate turn of events, we also believe we must focus our resources on the aircraft segment of our business, as 2001 will produce record results for this division. The future for the aircraft segment also looks extremely promising, as the Company has received approximately $17.5 million in new contract awards this year, an increase of over 35% from last year. This fact, combined with the current global situation, indicates that the Company can expect a continuation of its recent aerospace success," concluded Mr. August.
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Founded in 1980, CPI Aerostructures, Inc. is a precision machining and sub-assembly manufacturer servicing the commercial and military sector of the aircraft industry and the electronics industry including automated printed circuit board equipment and materials handling and processing equipment manufacturers. |
