Comrod AS, a company in the Comrod Communication Group, has yesterday afternoon signed an agreement to acquire 100% of the shares of Hungarian company Norworks kft. for a total amount of EUR 109,000. By this agreement, Comrod has now established their own production setup for antenna parts and products in Hungary.
This was an expected step after the letter of intent signed 31 January 2008. Norworks has already produced components for Comrod since November last year.
The need for further production capacity is triggered by the sharply increasing demand for Comrod antenna products, and this setup shall also improve cost efficiency, especially related to lower margin products from Norway and France.
The company is located in Budapest, and has as of today a workforce of 19 persons. Comrod foresees an increase to 30 employees during Q3 of 2008. (Comrod AS at Tau has about 135 employees). Targeted turnover for Comrod from Hungary in 2008 is EUR 4 mill.
Norworks is about to transfer their production to new, modern facilities where the startup will be in July 2008. The company has a 5 years rental agreement for this new facility for an annual rent of EUR 94,000.
Hungary was chosen as a location due to their status as a NATO country, their competitive
wage level, the availability of skilled workforce and the easy access to a competitive supplier network of electronic components. Comrod Hungary will be led by David Jankovits who holds an M.Sc. degree in electronic engineering from the University of Budapest and has previous experience from the Norwegian company Electrocompaniet.
For further information please contact:
Ole Gunnar Fjelde, MD of Comrod AS, mobile phone +47 95934541 or
ogf@comrod.com