Madshus to cease ski production in Biri: “It hurts”
As of the New Year, it will be over: “It hurts.”
Madshus was founded in 1906, and the factory in Biri, Norway, is currently the oldest ski manufacturing facility in the world still in operation. Now, that may soon come to an end.
After a combined loss of nearly 200 million kroner (about 18.5 million Euros) over the past three and a half years, the board of Madshus AS has proposed to discontinue ski production in Biri. The proposal indicates that production will primarily be carried out at the new owner ConsilTech’s factory in Nové Město, Czech Republic, starting next year.
This announcement comes just a month after Madshus reported new ownership and only a couple of months after the factory was able to resume operations following nearly six months of production stoppage and layoffs.
Also Read: Madshus gets new owner as ConsilTech and former Rottefella CEO take over
Expertise remains in Norway
According to the new owners, Biri will continue to be an important base for Madshus, where the rest of the organization will remain, including product development, sales, marketing, administrative functions, and logistics.
“The proposal to discontinue production in Biri is undoubtedly difficult for the employees to accept. Many of those working at the Biri factory have been here for decades, and they deserve recognition for the work they have done. However, I believe it is absolutely necessary to take strong measures for the Madshus brand to survive,” says Madshus CEO Torstein Myklebostad.
Partially Norwegian-owned
Myklebostad recently took over as head of Madshus. At the same time, it was announced that he is also entering the ownership side, alongside the new main owner ConsilTech, a Czech family-owned investment company. ConsilTech owns the ski brand Kästle and a ski factory in the Czech Republic that produces both alpine and cross-country skis.
“The entire sports industry in Norway is struggling significantly. In Madshus alone, the loss has been nearly 200 million kroner over the past three and a half years. The proposal means that ski production after this season will take place at our new owner’s factory in Nové Město, Czech Republic, where heavy investments have been made in modern and cost-effective production facilities. However, we want the skis for the upcoming season to be produced here in Biri,” says Myklebostad.
Over 30 jobs at risk
The proposal to close the factory could affect 32 positions in the production department in Biri. Many of these were laid off earlier this year.
“The employees were informed about the proposed closure in a general meeting in Biri today. A final decision will be made within a few weeks. In the coming days, we will focus on discussions with those affected and their representatives,” says Myklebostad.
A key figure in these discussions will be the chief union representative at Madshus, Torgeir Strandbakke.
“This is an extremely difficult message for the employees at Madshus to receive. We now expect a clear process in the discussions we will have with management in the coming period,” says Strandbakke.
“It hurts,” says Lars M. Kurås, who is Senior Global Marketing Manager and works in Biri.
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