The Jøtul oven maker is moving large parts of production at the factory in Kråkerøy, Fredrikstad, Poland. This informs the company in a press release Monday afternoon.
– Jøtul establishes a new factory in Poland. We move parts of the production business in Norway and we share their production activities in Denmark and we place them, explains the head of Jøtul Nils Agnar Brunborg to DN.
He explains that the reason is a bigger cost savings and who have been working on the project since April this year. Earlier this year, Jøtul closed the factory in Tistedalen.
"We have gone through important years of significant losses and we have made several measures to create positive results. In this project we consider some low cost countries in Eastern Europe and we end up with Poland as the best option due to the logistics and cost levels, says Brunborg.
100 loses my job in Norway
– How much will it cost?
"We calculate, but we do not want to share it," responds Jøtul.
Brunborg does not want to elaborate what Jøtul invests in the 20,000-square-meter factory in Poland, which is expected to start from the first quarter of 2020.
"But it is a considerable sum invested," says Jøtul.
It states that the decision to banish will affect about 100 jobs in Norway and 70 in Denmark.
"At the same time, we keep the smelter business in Norway. What moves from here is manual work.
– Will there be more measures?
"Now we finish this project that is great and important for us. We are not looking for anything next to the cost of the company unless the market collapses, but we do not see it now. On the other hand, we are looking for opportunities to grow the through acquisitions, says Brunborg.
He lost 686 million in seven years
A review of the annual accounts of Jøtul shows that the Group has a total operational loss of NOK 686 million in the last seven years. The biggest loss came last year when it ended with a loss of operations of NOK 316 million.
– The deficit of last year is due to the decline in goodwill. It happened that Ratos bought the company and sold it again in 2018. Then it was valued at a completely different amount and a reduction of about 300 million was written, explains Brunborg.
The Swedish acquisition fund Ratos sold all its shares in Jøtul to OpenGate Capital in 2018. The current head of Jøtul Brunborg was appointed acting chief in 2017.
"What is happening now is not that good, but returning to profitability has been my task and then you have to make some unpopular decisions," says Brunborg.
Jøtul has 280 employees in Kråkerøy, and according to Fredriksstad Blad, all were summoned for a meeting on Monday afternoon.
"It was calm in the assembly when the message was given and not as much as it was said," says Brunborg.
Jøtul delivered net sales of 617 million in the first three quarters of the year, an increase of seven million from the same period of the previous year, thanks to the increase in sales in Norway and EE. UU. The adjusted operating profit increased by NOK 20 million to NOK 45 million.
One of the reasons why the company can report a stronger result is that the personnel cost has decreased by ten million crowns.
"We had growth throughout the year of last year. This is mainly due to stronger markets in the United States and to our largest market, Norway, it was also good. The benefits are also better than it was, but to be sustainable, you will have Higher profits, "says the director of Jøtul, Brunborg.(Conditions)Copyright Dagens Næringsliv AS and / or our suppliers. We want you to share our articles using a link that leads directly to our pages. The copy or any other form of use of all or part of the content may only be in writing or permitted by law. For more terms, check here.