Friday , May 7 2021

Jøtul flags out parts of production – about 100 mister jobs



The furnace manufacturer Jøtul moves large parts of the production at the factory in Kråkerøy, Fredrikstad, Poland. This reports the company in a press release Monday afternoon.

Jøtul boss Nils Agnar Brunborg.

Jøtul boss Nils Agnar Brunborg.
(Photo: Javad Parsa)

– Jøtul establishes a new factory in Poland. We move parts of the production business in Norway and share your production activities in Denmark and collect them, explains Jøtul's head Nils Agnar Brunborg to DN.

He explains that the reason is further cost savings and that they have been working on the project since April of this year. Earlier this year, Jøtul closed the factory in Tistedalen.

"We have gone through significant years of significant losses and have made a number of measures to create positive results. In this project, we have considered some low-cost countries in Eastern Europe and ended with Poland as the best option thanks to logistics and cost levels," said Brunborg.

100 lose my job in Norway

– How much will you save on this?

"We have calculated, but do not want to share it," replies Jøtul.

Brunborg does not want to calculate how much Jøtul invests in the 20,000 square meter factory in Poland, which is expected to start from the first quarter of 2020.

"But it's a big sum invested," points out Jøtul boss.

He says the decision to flag out will beat about 100 jobs in Norway and 70 in Denmark.

At the same time we hold the foundry in Norway. What moves from here are manual jobs.

– Will there be more actions?

"Now we have implemented the project that is important to us. We are not looking for anything else on the company's cost side unless the market collapses, but we do not see it now. On the other hand, we are looking for opportunities to grow through acquisitions," says Brunborg.

Lost 686 million in seven years

A review of Jøtul's annual report shows that the Group has a total operating loss of SEK 686 million over the past seven years. The biggest loss came last year when it ended with a loss of business of SEK 316 million.

– The deficit last year is due to goodwill impairment. Ratos bought the company and sold it again in 2018. Then it was valued to a completely different amount and a write-down of approximately 300 million was written, explains Brunborg.

The Swedish acquisition fund Ratos sold all its shares in Jøtul to OpenGate Capital in 2018. The current Jøtul manager Brunborg was appointed interim manager in 2017.

"What's happening now is not that nice, but getting profitable has been my task and then you have to make some unpopular decisions," says Brunborg.

growth

Jøtul has 280 employees at Kråkerøy, and according to Fredriksstad Blad, everyone was invited to a meeting on Monday afternoon.

"It was quiet in the congregation when the message was given and not so much as said," says Brunborg.

Jøtul had sales of SEK 617 million during the first three quarters of the year, an increase of seven million from the same period last year due to increased sales in Norway and the United States. Adjusted operating income increased by SEK 20 million to SEK 45 million.

One of the reasons why the company can report a stronger result is that staff costs have decreased by ten million kronor.

"We have had some growth throughout the year from last year, mainly due to stronger markets in the US, and our largest market, Norway, has also been good. The revenue is also better than it has been, but for sustainable , it will be higher profits, says Jøtul boss Brunborg.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We want you to share our business with a link that leads directly to our pages. Copying or other use of all or part of the content may only be by written permission or by law. For further terms see here.

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