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