Kitron may close Swedish unit

Dependent on discussions with the local union this could involve a complete close down and the loss of 69 jobs. Kitron AB's unit in Karlskoga, Sweden, has during 2010 and 2011 carried out a major restructuring program with the purpose of adjusting its operation in relation to cost and manning, the company announced. The changes have resulted in a consolidation of all administration to Kitron AB in Jönköping. Discussions have been ongoing with the single largest customer in Karlskoga leading to a transfer of manufacturing to a low cost alternative within the Kitron group. This together with lower orders within the Defence segment leads to the need of additional restructuring of the Karlskoga unit. This restructuring can, depending of the outcome of the local negotiations with the union, lead to an extensive down sizing or total close down of the unit. A notice has today, for this reason, been delivered to the Swedish unemployment agency involving all 69 employees. All employees have been informed and negotiations with the union will start as soon as possible, according to Kitron.