A Dyson logo is seen on 5th Ave in New York, New York, U.S., March 19, 2019. REUTERS/Carlo Allegri/File Photo
KUALA LUMPUR, Nov 25 (Reuters) - Dyson has terminated its relationship with supplier ATA IMS Bhd (ATAI.KL) following an audit of the Malaysian company's labour practices and allegations by a whistleblower, the firm famed for its high-tech vacuum cleaners told Reuters.
ATA, which is already being investigated by the United States over forced labour allegations, did not have an immediate comment. It has previously denied such allegations.
Shares in ATA, which makes parts for Dyson's vacuum cleaners and air purifiers, tumbled 30% to their lowest since April 2020 after the Reuters report. According to ATA, Dyson accounts for almost 80% of its revenue.
The termination is also a significant blow for Malaysia, a key electronics manufacturing hub that has faced scrutiny this year over exploitation of foreigners who make up a large share of its factory workforce.
Dyson, privately owned by British billionaire James Dyson, said it received the results of an audit of working conditions at ATA in early October. It said it had learned in September about allegations from a whistleblower at an ATA factory and had commissioned a law firm to investigate those claims.
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