(Rælingen, Norway, June 25th, 2019) StrongPoint ASA (StrongPoint, OSE: STRONG) has accepted an offer for compensation from BaneNor of 55.6 MNOK for to relocate from its Tangen Label facility. The regional plan for installation of double railways from Kleverud to Sørli in Norway will lead to a relocation need for StrongPoint’s label operation.
StrongPoint Labels division has for years produced labels for Norwegian and Swedish customers at our facilities at Tangen in Norway. The reason for the agreement is that the building activities for the new railways, with dust and vibrations, will make it inconceivable to continue the production in current facilities.
StrongPoint has accepted the proposed 55.6 MNOK compensation offer. The compensation fee and time of payment is subject to internal confirmation in BaneNor, and the finalization of the agreement between the parties.
The railway construction work is estimated to start 2020/2021, and payment of the compensation fee is estimated to January 2020.
"Although we have a good location today and did not want this change from an operational perspective, we understand BaneNor’s challenges in planning the new railways. We are glad that we have sufficient time for the relocation process” says Jacob Tveraabak, CEO of StrongPoint.
ENDS
For additional information please contact:
Hilde Horn Gilen
CFO, StrongPoint ASA
Mail: hilde.gilen@strongpoint.com
Phone +47 920 60 158
About StrongPoint | www.strongpoint.com
StrongPoint is driving productivity for European retailers by providing innovative, integrated technology solutions for multi-channel retailing based on long-standing relationships with customers and partners. StrongPoint is also a leader in IBNS solutions for Cash-In-Transit (Cash Security), and Labels for customers in Norway and Sweden. StrongPoint offers best-in-class service and consultancy expertise through its team of 525 employees in Norway, Sweden, the Baltics, France, Germany, Belgium, Spain and Russia. StrongPoint is headquartered in Rælingen, Norway, and listed on the Oslo Stock Exchange (ticker: STRONG).
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act