Electronics Production | September 30, 2010
Loss of customer will cause layoffs at Kitron
Kitron ASA's subsidiary Kitron AS in Arendel (Norway) has received notice of termination from one of its Data/Telecoms clients. The manufacturing location in Arendal will see layoffs.
The production will continue until the end of March 2011. The effect on the annual turnover is estimated to NOK 100 million (EUR ). "While we regret the decision by this particular client we are optimistic about the market trend in general and that we will be able to offset this loss with increased demand from other clients. However, in the future more of Kitron's production will take place at our sites in Lithuania and China and it is therefore likely that this loss will lead to personnel reductions at our Arendal site. We estimate that up to 60 employees could be affected but we need some time to analyse the consequences in detail before concluding on an exact number. Based on our experience we believe there will be no significant restructuring costs related to the downsizing in Arendal", says Jørgen Bredesen CEO of Kitron.