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Electronics Production | December 19, 2011

Close down of Kitron Karlskoga

Following information provided on November 9, 2011 related to changes at Kitron AB in Karlskoga (Sweden), Kitron has reached a decision to close down the site.
The back ground is that the single largest customer has, for some time, been in discussion with Kitron leading to a transfer of Manufacturing to Kitron's site in Ningbo, China. Together with lower orders within the defence segment this lead to the previously announced decision on restructuring of the Karlskoga unit.

Since then a review of the current situation including customers has been done leading to a decision of a total close down of the site. Kitron's assessment is that the future does not provide enough financial foundation to continue the operations at the site. Negotiations with the local union will continue and Kitron aim to be finished within the first quarter 2012.

The previously given notice to all employees in Karlskoga is still valid but due to internal transfers of manufacturing within Kitron there is a possibility that some employees in Karlskoga might be offered to join Kitron AB in Jönköping but it is too early to predict any outcome of the negotiations in terms of positions or numbers.

The cost of the close down is estimated to NOK 15 million (SEK 18 million) and it is expected that these costs will be booked in Q4 2011.

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September 21 2018 11:51 am V11.0.0-2