RESHORING CASE

Teknotherm

Company details
Code: 
Teknotherm
Company name: 
Teknotherm
Group name: 
Heinen & Hopman Group
Company country: 
Norway
Group home country: 
Netherlands
Number of employees: 
69
Sector: 
C - Manufacturing
Sector detail: 
C28 - Manufacture of machinery and equipment n.e.c.
Sub-sectors: 
C28.2.5 - Manufacture of non-domestic cooling and ventilation equipment
Reshoring details
Reshoring announcement date: 
17/05/2016
Starting implementation date: 
June, 2016
End of Implementation : 
December, 2016
Reshored to: 
Norway
Location of affected unit(s): 
Halden
Location code: 
NO031
Reshored business function: 
Production
Reshoring governance mode: 
In house (in own facilities)
Reasons for reshoring: 
Change in total costs of sourcing
Delivery time
Exchange rate risk
Know-how in the home country
Poor quality of offshored production
Case narrative: 

Teknotherm has a history dating back to 1926 as a designer, contractor and manufacturer of high quality refrigeration systems. The head office of Teknotherm is in Halden, Norway. The strategy of this company is to be the preferred supplier of HVAC- and refrigeration systems for marine and offshore installations. On 26th, November 2015, Dutch company Heinen & Hopman has bought 60% of the shares of Teknotherm Marine AS. The deal includes the subsidiary companies in China, Poland, Turkey, Sweden and Tromsø, Norway. In 2016, Teknotherm has decided to relocate the production of electronic components for refrigerated seawater systems from China to Halden, Norway. According to the news published by E24 in May, 2016, Jon Aksel Brynhildsen, CEO of Teknotherm said, despite the fact that production in China is cheaper, the quality offered in Norway and the currently weak Norwegian currency help to motivate the relocation. The recent news published by E24 in April, 2017 stated that the relocation decision is made based on an assessment of costs, quality, exchange, delivery and more efficient production in Norway. In addition, there was a need to secure jobs in Norway and preserve the necessary skills said from Jon Aksel Brynhildsen, CEO of Teknotherm.   

 

 

 

Sources: 

E24

Heinenhopman

Offshoring details
Offshoring location: 
China
Offshored business function: 
Production
Host country geographical area: 
China
Notes: 
Number of employees as of 2014