Kitron invests in its Arendal operations

(2014-12-12) Kitron ASA's subsidiary Kitron AS will move its operations from Hisøy to Kilsund. Both locations are in Arendal, Norway.

The Hisøy plant is a leased facility. The Kilsund plant is owned by Kitron and was Kitron's main production facility from 1985 until 2005.

Kitron will make investments estimated at NOK 45 million in order to upgrade and expand the Kilsund facility and increase efficiency of the Arendal operations.

"The move to Kilsund is based on a sound business case. The investment will quickly pay off because of substantially lower costs. The future operation will be smaller, but also more robust and profitable," said Peter Nilsson, Chief Executive Officer of Kitron ASA.

"The investment is an important step toward adapting the Kitron Arendal facility to meet the future product and customer requirements, especially from the defence industry," said Dag Songedal, Managing Director, Kitron AS.
  
"Kitron is making a strong commitment to the local community by investing in the Kilsund plant," said Nilsson.

The move is expected to take place early in 2016.

One-off costs relating to the move are expected to be NOK 7 million and will be charged in the fourth quarter of 2014.

For further information please contact:
Peter Nilsson, CEO, tel. +47 94 84 08 50 or e-mail peter.nilsson@kitron.com
Dag Songedal, Managing Director, Kitron AS, tel. +47 91 38 64 68 or e-mail dag.songedal@kitron.com
Cathrin Nylander, CFO, tel. +47 900 43 284 or e-mail cathrin.nylander@kitron.com

Kitron is one of Scandinavia's leading electronics manufacturing services companies for the Defence, Energy/Telecoms, Industry, Medical equipment and Offshore/Marine sectors. The company is located in Norway, Sweden, Lithuania, Germany, China and the United States. Kitron had revenues of about NOK 1.6 billion in 2013 and has about 1,200 employees. www.kitron.com

This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act).