KUALA LUMPUR: ATA IMS Bhd has received notices of termination of contract from Dyson Operations Pte Ltd and Dyson Manufacturing Sdn Bhd.

In a filing with Bursa Malaysia, ATA said its subsidiary ATA Industrial (M) Sdn Bhd (ATAIM) received the notices of termination on Nov 24, at 5.30pm from Dyson Operations and Dyson Manufacturing.

The contracts are:

  • The contract manufacturing agreement dated Oct 15, 2020 Dyson Operations and ATAIM;
  • The agreement for the supply of goods and services dated March 1, 2013 between Dyson Manufacturing and ATAIM; and
  • The framework agreement for the supply of goods (tooling) dated June 17, 2009 between Dyson Manufacturing and ATAIM.

ATA said Dyson Operations and Dyson Manufacturing had issued the notices of termination without cause pursuant to the terms of the respective contracts.

“The effective date of termination shall be June 1, 2022. Until June 1, 2022, Dyson and ATA shall continue to fully perform their respective obligations under the contracts.

“For ATA, this shall include continuing to manufacture and supply products, components and tooling, and continuing to provide services, for and on behalf of Dyson and its affiliates in accordance with the terms of the contracts.

“The Board of Directors is taking advice on the validity of the notices of termination,” ATA said.

ATA also noted that an earlier news report by Reuters in which references had been made to the termination of the contracts by Dyson Operation and Dyson Manufacturing and to an audit of the company’s labour practices.

“The company confirms that prior to the receipt of the notices of termination, the company had been in discussions with Dyson regarding the findings of the audit.

“The company further notes that it had taken immediate steps upon being notified of the summary of the audit to engage Dyson in discussions and to engage professional advisers to assist the company to review, verify and validate the findings of the audit,” ATA said.

At 12.30 pm, ATA fell down 35 sen, or 29.92% to 82 sen with 72.40 million shares traded.

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