Kitron — M&A Activity 2018

Jul 23, 2018

Kitron to invest in Poland

Kitron to invest in Poland

(2018-07-23) Building on the strong performance in Lithuania, Kitron intends to

expand its Eastern European presence and has signed a letter of intent for a

production facility in northern Poland.

Construction of the 8,000 square meter facility is planned to start in the

fourth quarter, and production is scheduled to start by the third quarter next

year.

Kitron intends to hire a staff of approximately one hundred for the first year

of operation, and this is expected to increase significantly over the coming

years, potentially reaching about 500 employees.

"This is a major step for Kitron. We have seen strong growth, particularly for

our Lithuanian operation, and we see the need to increase capacity. Therefore,

we're excited to announce the plans for a state-of-the-art production facility

in Poland," said Peter Nilsson, CEO of Kitron.

The plan is for a leased facility, purpose-built for Kitron. Investments and

capacity increase will occur gradually over a period of about five years. Total

expenditure over this period is forecast to be approximately EUR 15 million and

is expected to be handled within the annual capital expenditure range of 2-3% of

revenue previously indicated by the company.

Having gradually expanded its footprint from the home turf in Scandinavia,

Kitron today performs advanced electronics manufacturing in Norway, Sweden,

Lithuania, the US and China, in addition to a sales office in Germany. Over the

past years, the Lithuanian operation has expanded rapidly and is now the largest

in the Kitron group, employing a staff of about 900.

For further information, please contact:

Peter Nilsson, CEO, tel: +47 948 40 850

Mindaugas Sestokas, MD Lithuania, tel: +370 685 25 557

E-mail: investorrelations@kitron.com

Kitron is one of Scandinavia's leading electronics manufacturing services

companies for the Defence/Aerospace, Energy/Telecoms, Industry, Medical devices

and Offshore/Marine sectors. The company is located in Norway, Sweden,

Lithuania, Germany, China and the United States. Kitron had revenues of about

NOK 2.4 billion in 2017 and has about 1 450 employees. www.kitron.com