Nimbus closes Finnish production facilities
Nimbus Group, manufacturer of brands including Aquador, Bella, EdgeWater, Falcon, Flipper, Nimbus and Paragon Yachts, is closing its Finnish production facilities in Kuopio and Luoto and restructuring.
The company has had to close its facilities due to the ongoing weak demand in the smaller end of the boating market.
“Since the pandemic, the market for small boats has been very weak and we have thus suffered substantial losses in this segment for several quarters. Nimbus Group has been refining its focus on premium boats for the past number of years, and we are making this change to strengthen our efforts in this area. It is of course a sad moment to be making this announcement, but profitability is – and will remain – a vital prerequisite for secure jobs, and we must do what we can to ensure this,” says Jan-Erik Lindström, CEO of Nimbus Group.
In 2023, Sweden’s Nimbus Group began local production of the Nimbus brand boat in North America, following its acquisition of EdgeWater earlier the same year.
Nimbus Group will make a provision of SEK55 million to a restructuring reserve in the third quarter of 2024. The restructuring is expected to yield a gradual improvement in profit starting in the fourth quarter of 2024 and reach full effect in late 2025. The total profit improvement is estimated at SEK50 million per year when fully implemented. The cash flow impact of the restructuring is initially expected to be a negative amount of SEK35 million in the fourth quarter of 2024, followed by a gradual improvement to positive cash flow in 2025. The overall cash flow effect of the restructuring is expected to be neutral to slightly positive.
The company says the closure is due to the group’s overcapacity outside the premium segment. A total of 140 employees are affected, the majority of whom have already been furloughed due to weak demand. Trade union negotiations will now follow.
Due to the closure of the production facilities, Nimbus Group will simultaneously adapt its model programme. The models concerned have generated sales of SEK100 million over the past 12 months.
Nimbus Group operates in Sweden, Finland, Poland, England, Norway and the US.
In September 2024, Nimbus Group announced it was expanding its dealership network in North America by appointing four new dealers for Nimbus Group brands, thereby strengthening its position and growth ambition in the North American market.
The new dealerships include Longshore Boats in Charleston, South Carolina, Nautimar in the Dominican Republic, Len’s Cove in Eastern Ontario, Canada, and Paris Marine in Western Ontario, Canada.
The post Nimbus closes Finnish production facilities appeared first on Marine Industry News.
