ARENDAL, NORWAY -- Kitron ASA's local subsidiary will move its operations from a leased factory in Hisøy to a company-owned site in Kilsund. 

The move is expected to take place early in 2016.

 Both locations are in Arendal. The Kilsund plant was Kitron's main production facility from 1985 until 2005.

Kitron also announced investments of NOK 45 million toward upgrades and technology expansion of the Kilsund facility. 

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

"The investment is an important step toward adapting the Kitron Arendal facility to meet the future product and customer requirements, especially from the defense 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.

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

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