Oven producer, Jøtul, moved parts of production to Poland.This will cause about 100 employees at Kråkerøy in Fredrikstad to lose their jobs.
The case was discussed at a board meeting on Monday.It was decided to proceed with the restructuring of the company, including building a plant of 20,000 square meters in Poland.
The start-up at the plant in Poland is scheduled for the first quarter of 2020 according to a press release from Jøtul Group on Monday.
Also moving from Denmark
The subsidiary, Scans’ production, which is currently in Vissenbjerg in Denmark, is also moving to Poland. The same applies to the most labour-intensive processes at the facility at Kråkerøy.
The foundry is retained in Norway. The same applies to the head office, administration, sales and marketing departments, development department, and warehouse functions.
“We have worked very closely with our new owner, OpenGate Capital,to plan a sustainable future for Jøtul. After years of loss, significant changes were necessary to maintain profitability. Employees in Norway and Denmark are unfortunately affected when we move some parts of production to Poland’’ said Nils Agnar Brunborg, Managing Director of Jøtul.
100 of 280 employees
To NRK news, leader, Arild Johannessen, of Jøtul in Fredrikstad said that it appears that around 100 permanent employees are affected.Jøtul has 280 employees at Kråkerøy.
“It will mainly hit the production line and employees there. We are going to negotiate with the company and we will see if we are able to establish new tasks here” said Johannessen.
According to Nettavisen newspaper, 70 employees in Denmark will also lose their jobs.
© NTB scanpix / #Norway Today