Nimbus Group closes two Finnish production facilities

Nimbus Group has decided to close two Finnish production facilities in Kuopio and Luoto, specializing in the construction of small-sized boats. A total of 140 employees are affected, the majority of whom have already been furloughed due to weak demand in this specific market segment.

To finance this operation, Nimbus Group has decided to allocate 55 million Swedish Krona, or just under 5 million Euros, to establish a restructuring reserve. The impact of this measure on the company’s cash flow is expected to be negative in the last quarter of 2024, gradually becoming positive in 2025. As a result of this decision, the necessary and consequent union negotiations will also be initiated.

“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 – says Jan-Erik Lindström, CEO of Nimbus Group – The company 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”.

While things may not be going well for Nimbus Group in the small fiberglass boat segment, fortunately, Alukin, a company within the group, in collaboration with Svekon, has just won a contract to develop and produce a small workboat for the Swedish Armed Forces. This contract, if fully executed, would generate a value of 400 million Swedish Krona (35 million Euros) over 15 years.

“Alukin’s aluminum boats are renowned for their robust design and exceptional durability. This order confirms Nimbus Group’s ability to build and produce boats that meet the highest standards in terms of technical specifications and quality”, concludes Jan-Erik Lindström, CEO of Nimbus Group.