Kongsberg Automotive (KA) is consolidating its operations in China at its manufacturing plant and technology centre in Wuxi, with activities in Shanghai and Shiyan to be phased out by 30 May 2026.

The move follows KA’s acquisition of the remaining ownership in Kongsberg Automotive Morse Shanghai (KAMS) in 2025, which the company said strengthened its operational flexibility, governance and strategic control in China.

After the transition, the KAMS legal entity will be deregistered.

As part of the consolidation, production lines and support functions will be centralised in Wuxi.

KA said it will manage the process “in accordance with local regulations and in a responsible manner towards employees and stakeholders”.

The Norwegian automotive supplier described China as a “key strategic market”. Its product line includes driver and motion control systems, fluid assemblies and industrial driver interface products.

By combining activities in Wuxi, KA said it expects to create a stronger manufacturing and technology hub with “improved cost competitiveness”, “enhanced engineering and technical capabilities”, greater operational efficiency and a more robust platform to support customers in China.

The restructuring comes as KA continues efforts to improve performance.

In FY2025, operating revenues fell 9.5% to €712.8m ($830m), while operating income declined 27.2% to €13.6m from €18.7m.

Net income, however, improved to €0.2m from a loss of €18.2m.

In the first quarter of 2026, operating revenues slipped 5.4% to €179.6m, but operating income rose to €5.5m from €2.2m.

Net income also improved to €5.2m from a loss of €2.2m in the prior-year period.

In July 2025, KA announced an overhead cost reduction plan expected to deliver annual savings of €15m, affecting around 150 positions 

At the time, the company said most of those measures would be completed within 2025, with some extending into the third quarter of 2026.