Reorganized Swedish Ops Turning Profitable for Kitron PDF Print E-mail
Written by Mike Buetow   
Monday, 11 February 2013 10:03

JONKOPING, SWEDEN -- Kitron's restructuring of its operations here is complete and the EMS company is seeing the results, says Thomas Lofgren, head of Swedish operations.

The contract electronics assembler has cut its local operating costs by 35% over the past two years and saw a "solid jump" in profitability in 2012 for that business after many years of poor  results, the company said.

The firm has transferred most if its national accounts to Jonkoping and closed its factory in Karlskoga. The Swedish operation accounts for about a quarter of the Kitron's gross revenues, while revenues from customers in the Swedish market accounts for about 40% of total revenues.

"Sweden is important to us. We have now completed a successful restructuring of the business that enables efficient operation and reduced costs," said Kitron CEO Jorgen Bredesen, adding that the costs for the closure of the factory in Karlskoga were included in the accounts for 2011, and that no further provisions are required.

The Karlskoga site saw sales fall over a long period following a decline in the Swedish defense industry, its main end-market. The company has begin to recoup those lost revenues through increased sales to the industrial, telecommunications and medical segments. Customers now include Atlas Copco and Transmode, the latter of which Kitron Jonkoping delivers about 90 different products ranging from printed circuit boards, racks and box-build products to full systems.




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