The heat pump manufacturer plans to close an entire factory in Lapua

Heat pumps and Oilon Group, which manufactures burners, is planning to shut down an entire factory that makes real estate heat pumps in Lapua. Up to 47 people may lose their jobs during the change negotiations.

CEO of Oilon Tero Tulokka according to the factory’s business operations have not been made profitable despite the efforts.

“Good and long-term work has been done for it,” Tulokas says in the company’s press release.

Oilon bought Suomen Lämpöpumpteikkii Oy, which ran the Lapua factory, only five years ago. Since then, the business environment has been revolutionized.

“The interest rate, the drop in energy prices and the slowdown in construction have affected the market, and we have not managed to achieve sufficient turnover for a profitable business,” says Tulokas.

Lapua’s business accounts for less than ten percent of Oilon’s turnover. According to Tulokka, its possible termination will have no impact on Oilon’s industrial heat pump business and burner business.

Oilon the turnover in 2023 was a total of almost 90 million euros. The company employs more than 400 people.

In addition to Finland, the company has production in the USA and China, as well as sales offices in Brazil and Germany. In addition, Oilon has an international network of 70 dealers.