(2012-08-27) Kitron ASA has signed a long term manufacturing agreement with Kongsberg Defence & Aerospace AS for electronic modules that are part of Kongsberg's weapon control system; Remote Weapon Station (RWS).
"This is a very important agreement for Kitron with significant potential," says Kitron CEO Jørgen Bredesen, and mention Kongsberg's newly won framework agreement with the U.S. Army for their version of the RWS M153 CROWS (Common Remotely Weapon Stations).
The agreement Kongsberg Protech Systems (KPS) has entered into with Kitron's subsidiaries in Arendal, Norway and the U.S. means that Kitron is the preferred supplier of electronics to KPS.
"The agreement is central in the build up of our new business in the U.S. We are beginning to see the results of the strategic decision we made when we opened the factory in the U.S. last year," continues Bredesen.
For Kitron's factory in Johnstown, Pennsylvania the CROWS program alone is expected to generate annual revenues of approximately NOK 60 million over the next five years. Volume depends on needs and the annual budgetary procedure in the United States, and might therefore be both lower and higher. In addition, the agreement will give orders related to programs other than CROWS.
Kitron AS in Arendal has been providing electronics to Kongsberg Protech Systems since the first weapon station was delivered in the 1990's. The new agreement will ensure volume to Arendal for deliveries to markets other than the United States.
"This is a lighthouse contract. The fact that we are now Kongsberg Protech's main supplier confirms Kitron's competitiveness in Europe as well as in the U.S.," says Bredesen.
For further information please contact:
Jørgen Bredesen, CEO of Kitron ASA, tel. +47 48 25 25 84 or e-mail jorgen.bredesen@kitron.com
Dag Songedal, Managing Director of Kitron AS, tel. +47 91 38 64 68 or e-mail dag.songedal@kitron.com
Kitron is one of Scandinavia's leading electronics manufacturing services companies for the Defence, Energy/Telecoms, Industry, Medical equipment and Offshore/Marine sectors. The company is located in Norway, Sweden, Lithuania, Germany, China and the United States. Kitron had revenues of about NOK 1.7 billion in 2011 and has about 1,200 employees. www.kitron.com
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act