Kongsberg Automotive

Kongsberg Automotive's Burton plant underconsideration for closure

At KA's Capital Markets Day in November 2016, Kongsberg Automotive outlined its

plan for improving its performance and substantially reducing its costs. This

plan included closing down 6 plants, mainly within the Powertrain and Chassis

products segment in Europe.

Further to this plan, it has now been proposed that the FTS Burton plant in the

UK will be under consideration as one of the six production facilities that

could be closed, and that operations at the plant could potentially cease from

April 2018.

The Burton facility manufactures and supplies fuel and air suspension lines for

customers JLR and Aston Martin. The plant has 52 operational employees,

including agency workers. In 2016 it had revenues of EUR 2.6M.

While the Burton plant has been developed in the past 12 months for new

production lines, the key strategic customers are driving the need to relocate

this product range to their new facilities in Eastern Europe. The proposed plan

for Burton is:

· The JLR of production and equipment would be moved to KA's new facility

in Brzesc, Poland,

· The AML equipment would be moved to the KA Normanton facility in Leeds,

UK.

· The recently awarded L663 business would be launched out of the new

Brzesc facility.

There are 52 employees working for KA FTS at the KA Burton facility that could

be affected by the proposed plans. A period of consultation will begin,

collectively and individually, with all employees in the weeks to come to ensure

their concerns are adequately heard and addressed.

Investors/analysts:

Norbert Loers, Chief Financial Officer; mobile: +41 79 159 68 16

Kongsberg Automotive provides world class products to the global vehicle

industry. Our products enhance the driving experience, making it safer, more

comfortable and sustainable. With revenues of around EUR 1.0 billion and 10,000

employees in 19 countries, Kongsberg Automotive is truly a global supplier. The

company is headquartered in Switzerland and has 28 production facilities

worldwide. The product portfolio includes seat comfort systems, driver and

motion control systems, fluid assemblies, and industrial driver interface

products developed for global vehicle manufacturers. Find more information at

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