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Electronics Production | August 19, 2005

Kitron plans transfers to Lithuania

Kitron's new Chairman of the Board, Nerijus Dagilis, which also is a founder of the Lithuanian ownership company, Hermis Capital, plans to transfer large proportions of jobs out of Norway to Lithuania. Hermis Capital currently owns 40 per cent of Kitron.

This summer, Hermis Capital bought 40 per cent of the shares in Norway's biggest EMS-provider Kitron A/S. Last week, 31 year old Nerijus Dagilis was chosen chairman of the board of Kitron, against many of the board members protests. Hermis Capital started up five years ago with less than 1 million US Dollars in seed capital. Today Hermis Capital is worth a 100 million Euros. Hermis Capital's model is to buy old production facilities in Lithuania and renovate these to start production. This week Hermis Capital confirmed on going talks of transfer up to 600 jobs from Kitron's two production units in Arendal, to Lithuania. Kitron has already transferred some of its production from Norway to Lithuania. "This process was already planned when we first bought our Kitron shares, and it can not be discontinued. We are businessmen, not politicians", Nerijus Dagilis explained to Norwegian daily news paper Dagens Naeringsliv. Nerijus Dagilis also shows his sympathies with the employees of Kitron but explained that they have to get ready for more transfers. Other low wage countries are under investigation, but Hermis Capital is right now most interested in transfer production to Lithuania. Hermis Capital is also a stake holder in one of Europe's largest manufacturers of components for television set production, Vilniaus Vingis.
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August 21 2019 3:49 pm V14.1.4-2