On Monday, it became clear that Madshus is cutting jobs and moving production abroad. But for the racing business, the company is holding firm on what matters most.

On September 14, the Madshus board proposed discontinuing production at Biri. The reason is that the company has lost nearly 200 million kroner (about 18.5 million Euros) over the past three and a half years. The proposal has now been approved.

This means that after the new year, production will mainly take place at the new owner ConsilTech’s factory in Nové Město, Czech Republic. After 120 years, it is over.

Also Read: Madshus to cease ski production in Biri: “It hurts”

Keeps the most important part at Biri

But even though ski production is now largely moving out of Norway, Madshus is holding firm on its core expertise.

All innovation and prototype production will remain at Biri. It is precisely the close cooperation between the product developers at Biri, the athletes, and the factory’s racing service, along with the short distance from idea to prototype, that is one of Madshus’s most important cards in the competition with other manufacturers.

“Through discussions with the union representatives, we have concluded that it is right to keep prototype production of racing skis as part of product development here at Biri for a period going forward. This allows us to benefit from the expertise that exists here,” says Madshus CEO and co-owner Torstein Myklebostad in a press release according to Langrenn.com.

Sales, marketing, administration, and logistics will also remain at Biri.

Half the staff lose their jobs

The decision means that 32 of the 66 employees at the Biri factory will lose their jobs.

The news comes just weeks after Madshus announced it had new owners. And only a couple of months after the factory was able to resume operations following nearly half a year of production halts and layoffs.

“It was a surprising and tough message to receive. Some were devastated, while others are taking it more calmly,” said the factory’s chief union representative, Torgeir Sviund Strandbakke.

“This has been a demanding process for those affected, and I want to thank the union representatives for good cooperation throughout the discussions. The decision is final, and it is necessary for the Madshus brand to survive in an extremely tough market.”

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