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