Veidekke has been awarded a design-build contract to construct a new production facility for Kitron, a Norwegian electronics manufacturer, at Longum park in Arendal, Norway. 

The contract with AFK Eiendom, a wholly owned subsidiary of Arendals Fossekompani, is valued at Nkr110m ($12.3m), excluding VAT.

AFK Eiendom property manager Tom Krusche Pedersen said: “For AFK Eiendom, this is an incredibly interesting partnership that can contribute to attractive growth in our region.  

“We are delighted to develop the project for Kitron at an important location for production and industry.” 

The planned 7,500m² facility will feature administration and storage spaces, accommodating Kitron's production needs, including assembly and testing of electrical components. 

Veidekke's workforce, in collaboration with Veidekke Prefab, will execute the carpentry and the production and assembly of concrete elements at the site. 

Construction is set to commence in late 2024, with the project's completion set for early 2026.  

The project is expected to generate approximately 70 office jobs and 220 jobs overall.  

Veidekke Agder district manager Atle Monan said: “We appreciate the confidence shown in us and that we have agreed on solutions that allow us to start designing and building the production building for Kitron on the attractive site located next to the E18 road at Longum in Arendal. 

“All involved parties have contributed with good input, and we are now looking forward to extending the good partnership into the next phase.” 

This development follows Veidekke's appointment as the design-and-build contractor for the Grønvoll quarter at Helsfyr in Oslo, Norway, earlier this month. 

That contract, commissioned by Nordr and valued at Nkr1.284bn, excluding VAT, is scheduled to start after the midyear holidays.