Zepro Layoffs in Bispgården Spark Community Outcry and Calls for Government Intervention

On January 20, 2026, Zepro announced the layoff of all 140 employees at its hydraulic lifts manufacturing plant in Bispgården as production is relocated to Poland. This decision has sent shockwaves through the local community, which has already experienced significant population decline since the 1970s and now faces the loss of its largest employer. Many affected workers have dedicated decades to Zepro, fueling anxiety and frustration within the workforce.

Local leaders are responding vigorously to the crisis. Anders Ljung and other community figures have formed a group to attract new businesses, with a particular interest in expanding the defense industry in the region. Anton Hammar, the municipal councilor and chairman of Ragunda’s municipal board, expressed grave concern over the layoffs and emphasized the municipality’s limited capacity to stimulate economic growth, as it has only one employee dedicated to economic development. Hammar is actively engaging government agencies such as Arbetsförmedlingen and Tillväxtverket, highlighting the urgent need for state support to safeguard local jobs and communities, particularly in light of Sweden’s NATO membership.

Local business owners echo these worries. Tove Guddingsmo from Ica Forsens and Lars Jonsson of the IF Metall union lament the prioritization of corporate profits over worker welfare. Conversely, community members like Therese Eriksson, owner of Älggårdsberget hotel, remain hopeful by investing in community initiatives, including repurposing a closed school into a hub for youth and seniors.

Professor Rikard Eriksson underscores the broader implications, warning that reduced state intervention risks destabilizing rural areas economically. Hiab, Zepro’s Finnish parent company, justified the move as a strategy to enhance manufacturing efficiency and competitiveness.

As Bispgården faces an uncertain economic future, the community’s resilience and local initiatives alongside calls for increased government action are shaping efforts to mitigate the impact of the layoffs and revitalize the region's economy.