The Jøtul furnace maker is manufacturing large parts of the plant at Kråkerøy, Fredrikstad, Poland. This reported the company in a press release on Monday afternoon.
– Jøtul establishes a new factory in Poland. We move parts of manufacturing operations in Norway and share your manufacturing activities in Denmark and jointly appoint, explains Jøtul's chief Nils Agnar Brunborg DN.
He explains that he is the reason for further cost savings and to work on the project since April this year. Earlier this year, Jøtul closed the factory in Tistedalen.
"We have gone through significant years of significant losses and made a number of measures to create positive results. In this project, we have considered some low-cost countries in Eastern Europe, and Poland has ended up with the best option because of logistics and cost levels, says Brunborg.
I lose my job in Norway
– How much will you save on this?
"We computed, but we do not want to share," Jøtul says.
Brunborg does not want to work out how much Jøtul invests in a 20,000-square-meter factory in Poland, which is expected to start in the first quarter of 2020.
"But this is a significant amount invested," says Jøtul's boss.
He states that the decision to leave the flag in Norway will have about 100 jobs and 70 in Denmark.
"At the same time, we are heading to a foundry in Norway. What has moved from here is a manual job.
– Will there be more measures?
"We are now completing this project that is great and important to us, and we are not looking for anything more on the cost side of the company unless the market crashes, but we do not see it now," says Brunborg.
He lost 686 million in seven years
The review of Jøtul's annual reports shows that the Group has a total loss of NOK 686 million over the past seven years. The biggest loss came last year when it ended with a loss of NOK 316 million.
– Deficit last year is the result of a fall in goodwill values. Ratos bought the company and sold it again in 2018. It was then appreciated in a completely different amount, and a write-off of about 300 million was written, explains Brunborg.
Swedish fund Ratos sold all its shares in Jøtul OpenGate Capital in 2018. Jøtul's Chief of Staff Brunborg was appointed for the interim boss in 2017.
"What is happening now is not so nice, but gaining profitability is my job and then you have to take some unpopular decisions," says Brunborg.
Jøtul has 280 employees in Kråkerøy, and according to Fredrikstad Blad, everyone was invited to a meeting on Monday afternoon.
"It was quiet at the assembly when it gave the message, not the way it was said," says Brunborg.
In the first three quarters this year, Jøtul achieved a net turnover of 617 million, an increase of seven million over the same period last year thanks to increased sales in Norway and the USA. Adjusted operating profit increased by NOK 20 million to US $ 45 million.
One of the reasons why a company can report a stronger result is that staff costs have been reduced by ten million crowns.
"We have been growing throughout the year since last year, primarily because of the stronger markets in the US, and our largest market, Norway, was also good. The earnings were also better than it was, but in order to be sustainable, you have will make more money, "says Jøtul manager Brunborg.(Conditions)Copyright Dagens Næringsliv AS and / or our suppliers. We want you to share our jobs through the link that leads directly to our site. Copying or any other form of use of the entire or part of the content may only be made in writing or permitted by law. For further terms, see here.