CK Partners has recommended closing foundry operations at Ulefoss Jernværk in Nome municipality, Telemark, affecting 114 employees and threatening Norges eldste gjenlevende industribedrift, founded in 1657, due to a 30 percent market decline and intense competition from low-cost countries.
Management at CK Partners announced earlier this week that foundry production at Ulefoss should be discontinued and merged with foundry production on Stange in Hedmark. According to Martin Sagen, managing director in CK Partners, the current situation is not economically sustainable, and profitability at Ulefoss has been pressed for several years. The company stated that the market has dropped around 30 percent over the past two to three years while facing increased competition from nations like Turkey, China, and India.
Market Pressures and Public Procurement Dilemmas
Sagen pointed out that while Norwegian production maintains world-class standards with low emissions, these environmental achievements make the local manufacturing relatively more expensive. He stated that purchasers frequently prioritize price over environmental standards during public tenders. According to the top executive, politicians establish strict environmental requirements for production but fail to apply the same weight when executing public purchases, creating a significant policy paradox.
In January of this year, gate goods and foundry operations at Ulefoss and Furnes were consolidated into a single corporate entity. Since that consolidation, the business has evaluated production organization. Products are sold through direct importers and grossists’ own brand labels.
Did You Know? Jernverket på Ulefoss, located in Nome kommune in Telemark, was founded in 1657 and is widely regarded as Norway’s oldest surviving industrial enterprise.
Local Crisis and Union Opposition
Nome Mayor Linda Therese Thorstensen characterized the closure recommendation as a severe crisis that impacts the local community deeply. A local action group led by the mayor and union representatives plans to demonstrate against the potential shutdown on Monday. Union representative Willy Dorholt stated that the workers disagree with corporate management’s assessment and have proposed an alternative solution they describe as equally financially sound and entirely risk-free.
Dorholt argued that the timing of the closure proposal is poor, pointing to municipal water and sewage pipeline backlogs across Norway alongside anticipated defense investments. He emphasized that the foundry represents the largest private workplace and a cornerstone enterprise in the community, holding a 369-year history that shapes local identity and culture.
Future Scenarios and Regional Industrial Shifts
If the board approves the executive recommendation, the foundry production at Ulefoss could be phased out over a three-year period. During this transition, manufacturing operations would continue locally while production capacity is established on Stange. The Stange iron foundry may require up to 30 new workers, alongside a planned triple-digit million investment funded by the company.
Mayor Thorstensen noted that Nome municipality could leverage local workforce competencies for other regional developments. Large deposits of rare earth elements have been discovered in the Fensfeltet area, presenting a potential new industrial opportunity.
Frequently Asked Questions
What company recommended closing the Ulefoss foundry? CK Partners recommended the closure of foundry operations at Ulefoss.
How many employees are affected by the proposed discontinuation? The foundry production at Ulefoss has 114 employees.
What alternative industrial development is noted in Nome municipality? The municipality contains large deposits of rare earth elements in Fensfeltet, representing a potential new industrial opportunity.
How do you view the balance between international market competition and the preservation of historic local industries in Norway?
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