Switch from fossil fuels needs unifying force

SWEDEN: The CEO of Swedish heat pump manufacturer Nibe has criticised fuel prices which favour fossil fuels while electricity is subjected to new taxes and charges.

Against the background of a slump in demand for heat pumps in Europe, Nibe CEO Gerteric Lindquist observed: “The transition to a more sustainable society is progressing far too slowly.

“Despite all the apparent warnings that all is not right with the climate, we are sadly lacking a unifying force and consensus between countries and continents on the necessary measures.”

Blaming prices which favour fossil fuels, he maintained, however, that the transition away from fossil fuels was unavoidable. 

“And we are therefore working tirelessly to both communicate this message to decision makers at all levels and to supply the market with new, more environmentally friendly and more resource efficient products.”

Gerteric Lindquist’s comments came as he announced a 15.7% fall in the company’s sales to SEK29.5bn (€2.55bn) in the nine-month period to the end of September. This compared with an increase of 23.2% in the corresponding period in the previous year. Adjusted operating profit declined by 61% to SEK2.01bn (€181m).

Earlier this year, Nibe announced 340 redundancies and a plan to reduce overheads as a result of weaker demand in the European heat pump market.

“The action plan has largely been completed,” Lindquist said, declaring that the full annual earnings effect would be achieved in 2025.

“The investment programme, a gradual recovery in demand and the effects of the action plan implemented during the year form the basis of our aim to return to an operating margin within the historical range of each business area during 2025.”