Nobia to invest in a new production plant in Jönköping, Sweden, to replace Nobia’s existing factory in Tidaholm in 2024. The investment in automation and other production equipment is estimated at SEK 2 billion. As a result of the decision, Nobia has started customary union negotiations.
Nobia has for some time reviewed the Group’s strategy for the next few years. Growth opportunities have been identified in both Nobia’s existing main markets in the Nordic countries and the UK, as well as in new markets, mainly in Central Europe. In light of this, Nobia requires higher production capacity and greater flexibility to realise profitable growth and further strengthen the Group’s competitiveness. The volume at Nobia’s factory in Tidaholm, Sweden, will be transferred to the new factory, as will parts of the volume in Ølgod, Denmark.
The released capacity in Ølgod will be used for expansion opportunities in Central Europe. The new plant is proposed to be located in Jönköping to achieve the best possible transport and logistics efficiency and customer proximity. All employees in Tidaholm will be ensured a responsible transition period and offered employment at the new factory.
The total investment in automation and other production equipment is estimated at SEK 2 billion between 2020 and 2023 and will be debt financed. The factory building is expected to be leased on a long-term basis and will be recognised in the balance sheet in accordance with IFRS 16.
