Going sustainable in a traditional industry? Seizing opportunities in the furniture industry
Photo by Liza Azorina on Unsplash
By Thomas Lauvås, Associate Professor and Siri Jakobsen, Associate Professor, Nord University
This case study explores how Nordic Comfort Products (NCP) embraced sustainable innovation and strategic collaboration to launch the S-1500 chair—made from 1,500 grams of recycled aquaculture plastic—positioning itself as a competitive and environmentally conscious player in the contract furniture market.
About the Teaching Tool
In early 2019, Nordic Comfort Products (NCP) proudly revealed the final prototype of their S-1500 chair, an environmentally conscious product made using 1,500 grams of recycled plastic waste from the aquaculture industry. The chair was intended to make a strong impression in the contract furniture market, where NCP typically serves clients such as hotels, companies, and educational institutions. This launch marked a milestone for NCP, representing the company’s first tangible product in its broader strategy to promote sustainable innovation.
Located in the small village of Hemnesberget in Northern Norway, NCP employs just 21 people and has begun positioning itself as a company known for both thoughtful design and sustainability. The company’s strategic shift emphasized long-term goals over short-term metrics, with Chairperson Stig Frammarsvik and CEO Svein-Erik Hjerpbakk expressing a clear commitment to environmental responsibility, profitability, and job security for the local workforce. Their motivation stemmed from a belief that sustainability would become a vital driver for growth and relevance in their industry.
While NCP lacked extensive experience with external collaboration, the S-1500 chair’s development demanded knowledge beyond their internal capabilities. In 2018, the company engaged in key partnerships, including R&D support from SINTEF Raufoss, design expertise from the world-renowned firm Snøhetta, and material contributions from fish farming companies Nova Sea AS and Kvarøy Fish Farm AS. These collaborations were essential in creating a product that was not only innovative and functional but also aligned with environmental values.
To ensure the scalability and production efficiency of the S-1500 chair, NCP invested NOK13 million in a state-of-the-art, fully automated plastic injection moulding machine. This equipment enabled the company to produce the S-1500 chair—and potentially other future products—at higher volumes and with consistent quality. The investment reflected NCP’s seriousness about becoming competitive on a larger scale and its readiness to expand market reach beyond traditional boundaries.
Despite their optimism, NCP acknowledged lingering uncertainties. While they hoped the contract market would respond positively to the S-1500 chair, the company still faced critical decisions about how to leverage this innovation for long-term competitiveness. CEO Svein-Erik noted that while financial growth and expansion were not the primary immediate goals, NCP aimed to secure job sustainability and evaluate future development paths that could strengthen their market position without compromising their environmental mission.
NCP’S History
Nordic Comfort Products (NCP) has a rich history dating back to its founding in Oslo in 1932 as Romo Factories, initially trading furniture for soup before becoming a leading supplier of steel pipe furniture for educational institutions and public transportation. Throughout the decades, the company emphasized smart, practical design and product development, notably launching the globally recognized Nordic plastic shell chair in 1970—a result of collaboration with medical experts and a key inspiration for the modern S-1500 chair. In the late 1980s, driven by a desire to stimulate local employment, NCP relocated to Hemnesberget with support from the municipality and local bank, and entered a collaborative ownership structure that remains community-based. Growth continued steadily through the 1990s and 2000s, peaking in 2007 with a record turnover of NOK 39.6 million and the expansion of their production facilities. Over time, their partnership with HASVO AS deepened, integrating vocational support into production tasks. However, the landscape shifted after the 2009 financial crisis, as rising competition, foreign acquisitions, and pressure on profit margins—especially in the school furniture sector—introduced new strategic challenges for NCP. Notably, the company must now navigate the complex dynamics of working with firms that are both competitors and customers, making its future dependent on making thoughtful decisions that balance growth, local commitment, and sustained competitiveness.
Usage suggestions
This exercise fits multidisciplinary groups of students at Master level or above, aiming at some sort of entrepreneurial or leadership career. The exercise would need 1-2 days for students to prepare, and students will benefit from previous knowledge within strategic management and some understanding of the role of a company board. However, the board meeting agenda can be adapted to fit the students’ previous experience.
The exercise has previously been used in MBA courses within Board Work and Board Management, with students from different backgrounds and disciplines.
Digital version: You can do this exercise digitally, using breakout rooms. However, this might require more attention to include all students in the discussion.
The Contract Furniture Market, NCP’S Production, and Environmental Focus
NCP, established as Northern Norway’s only manufacturer of contract furniture as of 2019, designs and assembles furniture at Hemnesberget. While some components are produced in-house, others are sourced externally. Their products target various environments like offices, hotels, cafés, and especially schools, which form their most active market in Norway. The company has focused production efforts on steel components domestically, shifting away from imports from Asia to enhance customization, quality control, and responsiveness.
While the bulk of NCP’s sales happen within Norway, around 12–13% of their turnover comes from exports, with Sweden and Denmark being key markets. The company has taken strategic steps to expand international sales—most notably, by appointing a new sales manager and relocating their Swedish office closer to major customer hubs. Domestically, NCP sells through a network of distributors who often work with numerous suppliers, making visibility and marketing through trade fairs crucial. The Nordic Stockholm Furniture and Light Fair is central to their promotion efforts, although major European fairs are deemed too costly.
NCP’s primary competitive strengths lie in their ability to deliver large volumes of customized products swiftly and cost-effectively. Their decision to manufacture components in Norway has enabled more flexible and sustainable production. Price remains a critical factor, but their emphasis on environmentally conscious practices is also growing. The ability to provide environmental documentation detailing product origin and lifecycle CO₂ footprint positions them as a strong player in the sustainability arena.
NCP is ISO 9001 and 14001 certified and has pursued eco-labelling to communicate environmental responsibility. However, the company faces challenges in navigating Norway’s variable public procurement practices, where environmental requirements are inconsistently prioritized. Unlike the standardized systems in Sweden and Denmark, Norwegian tenders fluctuate in how they weigh price, quality, and environmental impact. This uncertainty is compounded by limited industry consensus on which certifications matter most.
NCP questions the dominance of the Swan eco-label in Norwegian procurement, arguing that international labels like the EPD offer deeper insight into sustainability through traceable CO₂ metrics. Despite growing interest in eco-friendly products, proving superiority is difficult due to diverse competitor standards. Their R-48 chair was recognized as Norway’s most environmentally friendly by The Federation of Norwegian Industries. Meanwhile, their S-1500 chair—made entirely from reused plastic from aquaculture—sets a benchmark in sustainable design. NCP aims to shift perceptions about recycled plastic and broaden its use, all while keeping an eye on evolving certification standards and industry transparency.
Major Investment in Machinery: Increased Competency Requirements
In 2016, NCP faced a pivotal decision concerning its outdated machinery from 1992. The dilemma was whether to continue with in-house injection moulding or outsource production. After careful consideration, the company chose to invest NOK 13 million in a fully automated injection moulding machine, aiming to retain control over the value chain, enhance profitability, and improve inventory management. This investment significantly increased production capacity by 50–100%, allowing round-the-clock manufacturing without constant operator involvement. Support from Kunnskapsparken Helgeland helped secure NOK 3.5 billion in funding from Innovation Norway, marking a major turning point for NCP’s production capabilities. The new machine also enabled backsourcing—bringing previously outsourced tasks back in-house—which positioned NCP Plast to serve external customers like Gigtrigger. With this move, NCP began exploring opportunities outside the furniture industry, such as producing molded components for other sectors.
The shift from manual production to robotic automation presented substantial challenges, requiring a year of adjustment before operations stabilized. Despite automation, parts of production remain manual, and the transformation has highlighted a critical need for new technical competencies. Programming and automated systems represent unfamiliar territory for the company, prompting a strategic focus on internal upskilling. Rather than hiring externally, NCP opted to train existing staff and take on apprentices with backgrounds in automation. This approach supports long-term ambitions to attract more formally educated talent, although geographic constraints at Hemnesberget make recruitment difficult. Overall, NCP’s commitment to modernizing production has laid the groundwork for broader market reach and greater self-sufficiency, but it demands continuous learning and strategic workforce planning.
Strategic Alliances, Marketing, and Innovation
Over the years, NCP has benefited from close collaboration with Kunnskapsparken Helgeland, particularly in areas involving academic outreach, student engagement, and funding programs like SkatteFUNN and Innovation Norway. A major milestone in this partnership was a feasibility study conducted in spring 2017, aimed at exploring opportunities for using recycled raw materials in injection moulding. Kunnskapsparken Helgeland helped NCP secure an R&D partner, and together with SINTEF Raufoss Manufacturing, they assessed the suitability of plastic waste—especially from the aquaculture industry—for production purposes. Tests showed promising results, identifying discarded ropes and potentially other items like net bags and fish crates as viable materials for reuse.
Following the study, NCP initiated contact with nearby fish farming companies such as Nova Sea and Kvarøy Fish Farm. They discovered that acquiring sufficient volumes of plastic waste—like the 80–100 tonnes Nova Sea produces annually—was entirely feasible. Svein-Erik emphasized the environmental advantages of maintaining a regional value chain, especially in terms of reducing transportation-related emissions compared to sourcing from Asia or Germany. Despite this progress, NCP faces the challenge of limited Norwegian suppliers of recycled plastic granules. Currently, they work with Norwegian Plastic Recycling AS in Rørvik, which handles both waste disposal and processing, although the company is located 370 km away. NCP continues to explore options to improve access to sustainable raw materials locally.
The development of the S-1500 chair
After completing earlier R&D projects on recycled plastic, NCP’s Svein-Erik came across an article in Plastforum detailing Snøhetta’s grant from Innovation Norway for recycling trials. Seeing clear alignment with NCP’s goals, he reached out: “I called the guy at Snøhetta, and he was over the moon when he heard what we were doing.” This sparked an enthusiastic collaboration, framed as an internal product development effort and led by Svein-Erik with NCP’s marketing and technical managers. The shared vision was to design a sustainable chair for the school market. After several prototype iterations, the S-1500 emerged as the final production model. During development, recycled plastic was moulded into the shell of NCP’s vintage R-48 chair, producing an unexpected, organic marbled pattern that captivated Snøhetta’s team. As Svein-Erik described, “Imagine a picture of a beach and the sea washing in over the seaweed. Visually, you get the same formations [in the chair].” Breaking from industry norms of uniform colour and perfection, Snøhetta pushed for uniqueness: “Why not make a unique chair, then number two won’t be the same as number one?” For NCP, this represented a bold shift in mindset, culminating in the public launch of the S-1500 at the Stockholm Furniture and Light Fair in 2019.
The partnership with Snøhetta sparked a broader re-evaluation of NCP’s brand architecture. Traditionally, the company had prioritized communicating under the company name rather than highlighting individual products. But according to Svein-Erik, “We may need to rethink a few things. Is it perhaps now time to build a brand at product level?” This reflection fed into their participation in Innovation Norway’s Strategic Positioning programme, led by architect and NCP board member Anita Valrygg. The initiative focuses on shaping NCP’s market presence and refining its messaging. As Svein-Erik explained, while distributors have long been considered the primary customers, the rise of architects as key decision-makers means the company must now provide product information and support in a “convenient and interesting manner.” This shift affects everything from their website to their communication strategy across digital channels like Instagram and Facebook, along with a dedicated app tailored for distributors. The growing awareness around design influence has led NCP to reframe how it positions both the company and individual products in the marketplace.
The S-1500 Chair
Source: Bjørnar Øvrebø and Hilde Sletten
Strategic Crossroads
Despite significant strategic investments, NCP’s leadership continues to reflect on future directions to enhance competitiveness. Chairperson Stig and CEO Svein-Erik view the company as a promising yet underdeveloped asset with a growing reputation, prompting key questions about resource allocation, growth strategies, technological advancement, and potential areas of reduced focus. While sustainability remains a central priority, Svein-Erik emphasizes the importance of also strengthening internal capabilities, nurturing partnerships like the one with Snøhetta, and expanding cluster collaboration. Both leaders recognize that the organization’s development and its broader value chain must be guided strategically, especially as they await the market’s response to the innovative S-1500 chair.
Case Activities
After reading the case, each group should attempt and reflect on the following assignments:
1. Map NCP’s resources according to Sarasvathy’s (2008) bird-in-hand principle—who
I am, what I know, and whom I know—prior to the development of the S-1500 chair
and after.
2. Based on the mapping in Assignment 1, discuss how NCP has used and developed its
resources to pursue the sustainable opportunity: the S-1500 chair.
3. Apply the 9R framework (Kirchherr et al., 2017) and suggest some next steps NCP
should take to become even more circular.
References
Kirchherr, J., Reike, D., & Hekkert, M. 2017. Conceptualizing the circular economy: An analysis of 114 definitions. Resources, Conservation and Recycling, 127, 221–232.
Sarasvathy, S. D. 2008. The bird-in-hand principle: Who I am, what I Know, and whom I know. 1–8. Retrieved from https://www.effectuation.org/wp-content/uploads/2016/06/birdinhand.pdf
Note: More information about the S-1500 chair can be found in the section ‘Strategic Alliances, Marketing, and Innovation’. https://ncp.no/en/
Based on
REFRAMING THE CASE METHOD IN ENTREPRENEURSHIP EDUCATION
Karin Wigger, Lise Aaboen, Dag Haneberg, Siri Jakobsen, and Thomas Lauvås –
9781800881150
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Chapter 27: Going sustainable in a traditional industry?: Seizing opportunities in the furniture industry by Thomas Lauvås and Siri Jakobsen