Nimbus Group is to close its Finnish production facilities in Kuopio and Luoto.
The closure is being put down to the Group’s overcapacity outside the premium segment.
A total of 140 employees are affected, the majority of whom have already been furloughed due to weak demand.
“Since the pandemic, the market for small boats has been very weak and we have thus suffered substantial losses in this segment for several quarters,” said Jan-Erik Lindström, Nimbus Group CEO.
“Nimbus Group has been refining its focus on premium boats for the past number of years, and we are making this change to strengthen our efforts in this area.
“It is of course a sad moment to be making this announcement, but profitability is – and will remain – a vital prerequisite for secure jobs, and we must do what we can to ensure this.”
Since the pandemic, the market for small boats has been very weak.
Jan-Erik Lindström
The decision means that Nimbus Group will make a provision of MSEK 55 to a restructuring reserve in the third quarter of 2024.
The restructuring is expected to yield a gradual improvement in profit starting in the fourth quarter of 2024 and reach full effect in late 2025.
The total profit improvement is estimated at MSEK 50 per year when fully implemented.
The cash flow impact of the restructuring is initially expected to be a negative amount of MSEK 35 in the fourth quarter of 2024, followed by a gradual improvement to positive cash flow in 2025.
The overall cash flow effect of the restructuring is expected to be neutral to slightly positive.
The decision to close the plants will now be subject to customary trade union negotiations.
Nimbus Group will now adapt its model programme following the decision to close the production facilities.
The models concerned have generated sales of MSEK 100 over the past 12 months.
