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October 15, 2013

A123 Future Bright In MetroWest

Courtesy photo A123's energy storage systems at AES Gener, an electricity distributor in Chile, are shown here.

It appears A123 Systems' presence in MetroWest has survived following bankruptcy and sale of the lithiom-ion battery maker to a Chinese firm, and will perhaps emerge more robust than it was before A123 filed for Chapter 11 bankruptcy protection in December 2012.

The Livonia, Mich.-based company announced a new organizational structure with its owner, Wanxiang Group, last week. In short, Wanxiang will roll its battery-making activities in China into A123 operations that existed there before Wanxiang bought the majority of A123's assets in January.

What does this mean for A123's facilities in Westborough and Hopkinton? Not much, according to Roger Lin, director of marketing for A123 in Massachusetts.

New Structure In Place Since January

“The ownership structure has been in place since the beginning of this year and this really is just a reorganization within the company itself,” said Lin, who is based at A123 Energy Solutions in Westborough, which handles all of the company's non-automotive business.

That doesn't mean there haven't been any changes in Westborough and Hopkinton following the transition.

The company downsized its workforce through attrition, according to Lin. Today, there are about 130 employees in Westborough and 10 in Hopkinton, compared to about 150 and 15, respectively, before Wanxiang purchased the company. A123 also announced a rebranding of the Westborough operations in May, combining several divisions under A123 Energy Solutions.

The Hopkinton office remains focused on research, testing and new product development for A123’s Venture Technologies division.

New Hiring Underway

But now, Lin said A123 is hiring again, with nine open positions in Westborough. According to Lin, the company needs new employees to support increased demand.

“We've had a lot of interest in a lot of products we're trying to deliver on in both the utility space for the electric grid, as well as the specialty battery businesses,” Lin said.

As a result, A123 has ramped up distribution of its products, making them more readily available through distributors and online. The company is finding good niche applications for its batteries, according to Lin, particularly in the aviation systems industry. One example of a large, niche client is Mid-Continent Instruments and Avionics, a Kansas company that services primarily corporate jet fleets and is purchasing A123's battery cells.

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