Electronics Production |
Kitron considers relocating production
Norway based EMS provider Kitron's subsidiary Kitron Flen AB is a specialized site for High Level Assembly with revenues in 2006 of SEK 91 million. In order to improve the financial result, Kitron is considering transferring the production to Kitron's sites in Karlskoga and Jönkoping in Sweden, as well as Kaunas in Lithuania before the end of 2007.
The company has entered into consultative negotiations with the employee unions before making a final assessment. Any restructuring costs will be calculated after the assessment has been completed.
If the relocation will be carried out, Kitron expects that all significant customer relationships will be retained and served from the other manufacturing sites. The total business volume is expected to remain about unchanged.
