SG to phase out production in Odense and strengthen its future competitiveness

SG is one of Europe’s leading lighting manufacturers and a major branded supplier to electrical contractors in the fields of lighting, SMART systems and wiring devices.

For several years, market demand has been shifting towards standardised products and higher production volumes. At the same time, customers are facing increasing cost pressures. SG will therefore consolidate a greater share of its production at the Group’s other manufacturing facilities, where higher volumes provide better conditions for efficient and competitive production.

‘We have worked for a considerable period to retain the Odense site, but despite making adjustments, we have now reached a point where this is the only viable solution. We deeply regret the decision, particularly for our highly skilled employees, and we will do everything we can to support everyone through the transition. We must continue to invest in the business, develop our broad product portfolio and maintain a strong position in international competition. Phasing out production in Odense is a necessary decision to safeguard SG’s long-term competitiveness and continued development,’ says Geir Tønnesland, Executive Vice President SG Group. 

Focus on a broad product portfolio

Going forward, SG will place an even stronger emphasis on the continued development of its broad standard product portfolio. Customers will continue to have access to variants of existing products when required for specific projects.

Product development will therefore increasingly be focused on highly demanded and larger volume product platforms rather than on the development of entirely new products for smaller, one-off customer projects. Customers and wholesalers will continue to have access to the same sales organisation, project advisory services and technical expertise as they do today.

At the same time, SG is investing in a new state-of-the-art test centre in Norway, where a significant share of the Group’s testing activities will be consolidated. SG expects to retain in Odense selected group-functions.

Production in Odense will continue throughout the transition period until the end of 2027. SG’s commercial activities in the Danish market will continue as usual, including sales, customer service, project advisory services, technical support and marketing