. As we wrote earlier, Nortura is shutting down some operations - 147 jobs are at risk. The reason is that 126,5 million could be saved thanks to the relocation of pig farming to eastern Norway. On Monday, the management board decided to build a new pig cutting department in Tønsberg, which the company announced on its website.
Exactly 68 people at Forus and 79 at Steinkjer will be dismissed. Earlier in October, executive vice president Lisbeth Svendsen met with workers at a factory in Stavanger, where workers were informed that management planned to move pig cutting to eastern Norway. As announced, the new cutting plant will cost money half a billion crowns and is scheduled to be completed in the summer of 2023.
- The investment is a means to activate the possibilities of automation and economies of scale in production. As part of the restructuring of the industrial structure of red meat, the measure will benefit the farmer in terms of improved raw material prices. In addition, it will also benefit customers in the form of increased innovation and more attractive products - says Trine Hasvang Vaag, President of the Management Board in the report.
There is no turning back
Ronny Aunan, a trade union representative for the NNN (Norwegian Food and Beverage Workers' Union) at the Steinkjer plant, says that once a decision is made, there are only ways to look to the future.
Now they will be in dialogue with both Nortura and the municipality to look for alternative solutions to take over the business locally. The current situation is an example that Nortura may find new areas of interest or that the municipality finds a third party that can open a new business there.
Even though they received a recommendation for a decision 14 days ago, Aunan hoped it wouldn't happen. However, after today's decision, there is no going back. Aunan says today's news was a heavy message for workers, but the congregation was calm and composed.
The new factory in Tønsberg will employ around 70 people. Nortura previously announced that internships will give priority to employees for new jobs. However, Aunan has received signals from employees that few in the department want this opportunity.
Complete shutdown in the coming years
In Forus, employees were also disappointed in Nortur's decision on Tuesday.
– This was disappointing and discouraging news. We had real hopes of making the decision to postpone, and we thought we had good arguments for doing so, but unfortunately we were unsuccessful. Only employees voted for this decision, says Ken Ove Sletthaug, NNN leader in Stavanger, Nortura. Now he is afraid that all business is in Forus will be closed in the next four up to five years.
- This is probably the first step in this direction. In that case, we are talking about around 550 employees who will lose their jobs at Forus, says Sletthaug. However, he hopes that a constellation of employees and others could buy out some of Nortury's business in Forus. For now, it is only talked about, but many find it an exciting thought.
The mayor of Stavanger, Kari Nessa Nordtun, had previously warned against the relocation of jobs from Forus to the east of the country.
"Worryingly, a company as large as Nortura is in practice laying off hundreds of jobs to centralize in eastern Norway," said Nordtun.
Increased profitability
In connection with the information on the colocation of the dissection of pigs, the company also presents a report on the results for the second four-month period (May-August period). Revenues during this period increased by almost NOK 700 million, more precisely to NOK 8,64 billion, compared to the previous year.
Operating profit before write-offs and depreciation (EBITDA) was NOK 568 million, up from NOK 344 million last year. However, this includes one-off effects in connection with the sale of the Matiq IT company. Without these effects, the company says EBITDA is still NOK 391 million. Compared to last year, it was NOK 352 million.
Profit before tax ended in this period at NOK 361 million. This is more than twice as much as in the same period last year.
- The result after the second four-month period is a good posting to work and build a new Nortury. Which is expected to increase farmers' incomes and strengthen their competitiveness, says Director General Anne Marit Panengstuen in a commentary.
Read our next article: Polish cinema in Norway Czarna sheep
If you are interested in this article, please leave a thumb. In this way you assess the degree of interest.
Photo credit: nortura.no
