KARLSKOGA, SWEDEN -- Kitron will shutter its electronics manufacturing services plant here due to falling demand and the transfer of its largest customer to a company site in China.

As part of the closing, Kitron will take NOK15 million ($2.5 million) in charges in the fourth quarter.

Kitron said in a statement that its largest customer has transferred manufacturing to Kitron's site in Ningbo, China. The company also experienced falling orders for defense programs, the specialty of the Karlskoga site. Kitron's assessment is that the future does not provide enough financial foundation to continue the operations at the site.

Negotiations with the local union will continue and are expected to be wrapped up in the first quarter 2012. Some Karlskoga employees might be offered to join Kitron's site in Jönköping.

Ed.: 1 NOK = 0.168174 USD

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