Kitron establish distribution centre to reduce inventory and fund growth and strategic investments
(Thomson Reuters ONE) -
Kitron has decided to establish a distribution centre to streamline the
logistics process and drive down inventory.
(2012-10-16) Combined with other initiatives within logistics and supply chain
process, Kitron is targeting to reduce inventory by at least NOK 100 million
from the current level.
"This will fund future growth and strategic investments. We will benefit from
both having less capital tied to inventory and from cost savings," says Kitron
CFO Björn Wigström.
Capital optimization
A significant portion of the working capital is tied up in inventory. Inventory
today represents about 30 per cent of the total assets in the company, and was
NOK 377.1 million at 30 June 2012.
"Kitron has become a global company. In 2011 we opened new factories in the US
and China, and we are now streamlining the supply chain and the logistics
process", says Wigström, and explains that the global growth has entailed
increased inventory levels over the past few years.
"Channelling inbound standard components through one central hub will lead to
pooling of inventory and will free more than NOK 50 million in inventory,"
continues Wigström.
Cost savings
The establishment of a distribution centre is also expected to lead to
operational improvements and cost savings. Larger order quantities and fewer
interfaces between Kitron and its suppliers will reduce the workload related to
order processing. The inbound material and components will also be optimized for
Kitron's manufacturing process, which will lead to increased productivity and
less waste.
Fully operational by the end of 2013
The investment required to establish a distribution centre in Lithuania at the
factory in Kaunas is estimated to about NOK 10 million. The investment will
partly be funded by the Lithuanian government. The plan is to have the
distribution centre fully operational by the end of 2013.
For further information please contact:
Björn Wigström, CFO of Kitron ASA, tel. +47 905 31 304 or e-mail
bjorn.wigstrom(at)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
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Kitron ASA via Thomson Reuters ONE
[HUG#1649484]
Unternehmensinformation / Kurzprofil:
Datum: 16.10.2012 - 13:53 Uhr
Sprache: Deutsch
News-ID 192893
Anzahl Zeichen: 3385
contact information:
Town:
Oslo
Kategorie:
Business News
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