Oilon con­siders dis­con­tinu­ing our real estate heat pump busi­ness

Jan 2, 2025 | News UK

Oilon Group is con­sid­er­ing closing our sub­si­di­ary Suomen Lämpöpumpputekniikka Oy, which man­u­fac­tures heat pumps for the house­hold and real estate market. Today, as part of this, Oilon Group ini­ti­ated change nego­ti­ations across our units in Finland. Up to 47 employ­ees may be subject to dis­missal or uni­lat­eral modi­fic­a­tion of an essen­tial term in their employ­ment con­tract. Addi­tion­ally, part of the staff may be laid off in 2025.

“Despite our con­tin­ued efforts and some suc­cesses along the way, we haven’t managed to turn our estate heat pump busi­ness prof­it­able,” says Oilon’s CEO Tero Tulokas.

“The high interest rates, decrease in energy prices, and slow­down in the con­struc­tion sector have had a neg­at­ive impact on the market, and we haven’t managed to achieve the turnover we need for prof­it­able busi­ness. Due to this, we are cur­rently in a situ­ation where we need to con­sider dis­con­tinu­ing the entire busi­ness area.”

The group’s real estate heat pump busi­ness accounts for slightly under 10 per cent of Oilon’s turnover. Closing the real estate busi­ness would not have an impact on Oilon’s indus­trial heat pump busi­ness or burner busi­ness, or units outside of Finland. Cur­rently, the real estate heat pumps are made in Lapua, Finland – an area where Oilon has no other busi­ness activ­it­ies.

Dis­con­tinu­ing the real estate heat pump busi­ness would strengthen Oilon’s prof­it­ab­il­ity. “At the same time, it would allow us to focus our efforts on Oilon’s indus­trial heat pump and burner busi­ness, where we expect sub­stan­tial growth and where our com­pet­ence is strong.”

Even if Oilon would stop making real estate heat pumps, the company would con­tinue to provide main­ten­ance and ser­vi­cing as usual. Cor­res­pond­ingly, Oilon will con­tinue to fulfill our war­ranty and guar­an­tee oblig­a­tions.

The group’s turnover in 2023 was approx­im­ately 90 million euros. With a global head­count of more than 400 employ­ees, Oilon has pro­duc­tion facil­it­ies in Finland, USA, and China, and sales offices in Brazil and Germany. Addi­tion­ally, we have an inter­na­tional network of resellers, with 70 part­ners in total.

Addi­tional inform­a­tion

Tero Tulokas

CEO, Oilon Group

+358 44 7576 257

tero.tulokas@oilon.com