KARLSKOGA, SWEDEN -- Top 40 EMS provider Kitron will move certain programs to lower-cost nations and lay off 55 workers its operations here in hopes of improving profitability.

The contract electronics manufacturer company, ranked 33d in the world according to the CIRCUITS ASSEMBLY Top 50, said it would transfer production to Lithuania and China.

It also will merge its Swedish entities, turning Karlskoga into a manufacturing site for defense customers, and centralize all administration at its Jönköping site in order to reduce indirect costs.

The Karlskoga operation will lay off 55 employees, with notices being issued this week.