Danish production company Nordisk Film is closing its Norwegian division due to changes in the country’s film financing structure.

The division, which has closed with immediate effect, is the biggest local producer of features for children and families. It will press ahead with the premiere of the sixth Junior Olsen Gang picture early next year although the seventh instalment has been cancelled.  Two producers will be made redundant

The Norweign Film Institute previously provided support to children and family projects by matching 100% of a title’s box office earnings. Following Norway’s decision to join the European co-production convention, support for such projects will be capped at $1.6m (NOK 9m). Since 2001, Nordisk has received more than $35m (NOK 200m) in public funding.

Stein-Roger Bull, managing director of Nordisk Norway, told local newpapers: ”For more than a year we have objected to these changes. Since they will now be implemented, we will no longer take the financial risk of producing children and family pictures.”

In recent years Nordisk has been the leading supplier of children and family fare to the Norwegian market, launching the Junior Olsen Gang franchise and films such as Wolf Summer and Finding Friends.