Following change negotiations, Oilon Group has decided to cease operations of Suomen Lämpöpumpputekniikka Oy. In practice, this means that the factory manufacturing real estate heat pumps in Lapua will cease operations.
“The decision was difficult. Many Finnish homes have Lämpöässä and Oilon heat pumps, the oldest from the 1980s,” says Oilon’s CEO Tero Tulokas. “A humble thank you to everyone who has been on this journey and done a good job.”
The reason for divesting the subsidiary is market changes and the ongoing downturn in the construction industry. The real estate heat pump business has been loss-making.
During the change negotiations, 47 people were expected to be laid off. However, during the negotiations, the need to reduce the number of employees was scaled down to 31.
The share of real estate heat pumps in Oilon’s turnover has been below ten percent. The closure of the unit will not impact Oilon’s industrial heat pump and burner business or its international operations.
“The good news is that the outlook for other units is positive. We expect growth in both industrial heat pumps and burners. Now we can further strengthen our position in them,” says Tero Tulokas.
Despite the closure of the real estate heat pump business, Oilon remains responsible for warranty obligations, maintenance, and spare parts services for all heat pumps currently in use and those yet to be delivered.
Established in 1961, Oilon specializes in energy technology. In addition to Finland, Oilon has production facilities in the United States and China, as well as sales offices in Brazil and Germany. The family-owned company employs more than 400 people worldwide.
Additional information
Tero Tulokas
CEO, Oilon Group
044 7576 257
tero.tulokas@oilon.com
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