KUALA LUMPUR /Reuters – Malaysia’s ATA IMS Bhd claimed Monday that Dyson’s recent labour audit did not find any evidence of forced labour and would impact Dyson’s termination.

Dyson is a leading home appliance maker. It told Reuters that Dyson had ended its contract with ATA last week. ATA receives 80% of its revenues from Dyson. The audit included allegations made by a whistleblower and labour practices.

Dyson didn’t disclose these audit results, but ATA (which makes parts for Dyson vacuum cleaners) had stated that the audits revealed forced labour allegations. This was something it took seriously.

Monday’s statement by ATA stated that it received a summary audit report and auditors had said that they could not “conclusively decide whether any allegations are true or falsified”.

The audit summary alleged conditions of poor living, concern about zero-recruitment charges for foreign migrant workers and unethical hiring practices by agents.

“The company reiterates its seriousness in dealing with forced labor allegations and has engaged professional advisors to help it review, validate and verify the audit findings,” ATA stated.

ATA stated that it expected to see its revenue fall by 30% and 40% respectively in the 2022 fiscal year, as a result of Dyson’s termination.

According to Dyson, the company plans to take cost-cutting steps in the wake of Dyson’s cancellation.

ATA stated that it is seeking legal counsel on its options in relation to Dyson’s contract termination.

Dyson ended the contract without notice, citing insufficient efforts of ATA to resolve audit findings. ATA said that Dyson would be manufactured and supplied until June 1, 20,22.

Since Dyson declared that it was ending the contract with ATA, shares of ATA’s stock have fallen by half.