The volume at Nobia’s factory in Tidaholm, Sweden, will be transferred to the new factory, as will parts of the volume in Ølgod, Denmark.

The released capacity in Ølgod will be used for expansion opportunities in Central Europe.

As a result of the decision, Nobia has started customary union negotiations.

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All employees in Tidaholm will be ensured a responsible transition period and offered employment at the new factory.

Commenting on the announcement, president and CEO of Nobia Jon Sintorn said: “The Board of Directors has today made a directional decision to build a new production facility in Sweden. The proposed investment is the largest in Nobia’s history.

“The plant, which is planned to be in full operation by 2024, will be one of the most modern kitchen manufacturing factories in Europe.

“It will have a high degree of automation and digitalisation as well as industry leading environmental and sustainability performance.

“The lead time for made-to-order kitchen production will be significantly reduced, manufacturing and logistics efficiency will improve and Nobia will strengthen its position as Europe’s leading kitchen specialist.

“Our capacity will increase considerably, which will support Nobia’s future growth and market share opportunities.”

Nobia’s fourth-quarter 2019 earnings will be charged with project costs, IT pre-studies and environmental certification related to the proposed investment.

The total costs amount to about SEK 30 million and will be included in Group-wide costs.