LONDON — Scandinavian contract manufacturer Kitron ASA has moved forward in its planned expansion in China as well as lining up a purchase in Germany.
The company has now signed a a five year lease agreement with Nordic Industrial Park Co., Ltd. for a electronic factory in Ningbo which has more than 4000 square meter of space and is near Kitron’s exisiting sourcing office. The factory is planned to be up and running with the most simplified products late third quarter.
The decision to set up in China was made last November when Jørgen Bredesen, Kiton's CEO said, “The decision comes as a consequence of discussions with our global customers having a need for our services in the Asia region.”
Kitron has existing facilities in Norway, Sweden, and Lithuania employeeing 1100 staff and had a revenue of about NOK 2.3 billion (about €280 million ) in 2008.
In December 2009 it signed a share purchase agreement to acquire 100 percent of the shares in VERU Electronic GmbH (Grossbettlingen, Germany) for €700,000, on a debt free basis. The closing of the deal is subject to reaching an agreement about the debt financing of the company. The intention is to close the deal early 2010 and make Veru a fully owned German subsidiary of Kitron ASA.
Veru has about 20 employees and a turnover of €1.4 million in 2008.