Andersen sues contractor, alleging it bungled Dubuque plant renovation, costing millions

Andersen Corp. claims an industrial automation company botched a big project at its Dubuque, Iowa, factory, costing the windowmaking giant millions of dollars.

Bayport-based Andersen hired ATS Corp. in 2020 to design and build automated equipment to assemble its E-Series windows.

But ATS failed to complete and deliver the equipment, missing deadlines by “enormous margins,” Andersen claimed in a suit filed Thursday. The equipment is now 860 days late.

The breach of contract suit was filed in Washington County District Court against Ontario-based ATS and its U.S. subsidiary, ATS Ohio Inc.

ATS has shut down work on the Dubuque project and has demanded millions of dollars in extra payments, Andersen claims.

The contractor’s “conduct has been so egregious as to constitute gross negligence or willful misconduct,” the suit said.

In a statement, ATS said because the dispute “is in front of the courts. We will not make any additional statements at this time, but we will look to defend, and present, our position through appropriate channels.”

Privately held Andersen, which declined to comment beyond the lawsuit, generates over $4 billion in annual revenue. It has operations in several states, including plants in Bayport, Cottage Grove and North Branch.

Andersen picked up the Dubuque plant in 2005 when it bought Eagle Window & Door.

The Iowa plant produces E-Series windows, one of Andersen’s premium brands for custom homebuilders. ATS’ alleged failures have stalled the launch of another E-Series product, the suit says.

Andersen “cleared floor space, re-engineered workflows, dedicated people and capital to meet a carefully sequenced [product] launch and poured millions upon millions of dollars” into the project, the suit says.

But ATS’ performance has been marred by “poor project management,” “design flaws” and “quality control issues,” Andersen alleges.

ATS has been sued for breach of contract in recent years by two other large manufacturers dissatisfied with its work.

Illinois Tool Works sued ATS Ohio last year, claiming ATS failed to adequately deliver an assembly system for electric vehicle (EV) battery components.

ATS denied Illinois Tool Works’ claims and countersued; the case is pending.

Six months ago, General Motors sued two ATS companies over an EV battery project. GM claimed ATS failed to deliver an assembly system that would meet the automaker’s production targets.