Lorents Burman, Kristina Sundin Jonsson
UPDATE: 18:50, THURS
Norran's business editor, Magnus Lindqvist, spoke to bankruptcy trustee Mikael Kubu this afternoon but Kubu wouldn't disclose the exact number of the 900 employees who will be laid off in June.
– The decision will be given to those concerned on Monday. But it involves major cuts, he tells Norran.
Is it about 100, 50, or 10 remaining?
– No, I don't want to say that. But these are significant cuts.
Is it more than half?
– We will get back to you about that.
The current plan is to continue producing and delivering battery cells to Scania in June, but no new material will be purchased.
(Norran English will run the full interview with Kubu tomorrow morning)
UPDATE: 16:05, THURS
Mayor, Lorents Burman (S) further commented on the Northvolt news to Norran, stating that the municipality has been continuously informed about the situation since last autumn.
He recapitulated events following the bankruptcy announcement, describing it as a critical period when the bankruptcy trustee sought someone to manage production.
– Scania chose to take on the responsibility of running the first week and has said several times that now someone else will take over. They have now been running production for 2.5 months. It was very honorable of them to do so.
However, Scania plans to cease operations at the end of May, requiring another entity to assume responsibility.
– It will be dramatic in terms of time because you don't want the business to be interrupted. We are in talks with the bankruptcy trustee about new solutions daily and are trying to help with contacts and pull the strings we can.
He points out that they are also in dialogue with the government to secure support for the municipality, aid those affected by lay-offs, and ensure Sweden continues battery production.
– Sweden was given the European responsibility for it seven years ago and now things have gone badly. The state must show that they want continued battery production in Sweden, which is important both geopolitically and geoeconomically.
Burman believes the government should account for its actions in this situation and suggests the state could step in as a partner during a transitional period. He highlights that the EU and several other European countries are actively pursuing battery production within Europe.
– No country that currently has battery production has been able to get there without support from the state, he says.
When asked about the current production volume and quality of Northvolt batteries, which are often mentioned but lack specific details:
– It is being produced at full capacity on one line. What I have heard from those who work there is that batteries are not being discarded like before and that the batteries that are being produced are of high quality. I think that is true. But Northvolt is today where they should have been three years ago.
He adds that significantly more batteries are now being produced since Scania engaged experts on-site.
– They have accelerated production.
UPDATE: 15:00, THURS
Skellefteå municipality warns in a press release that this decision will have serious consequences for the Swedish and European automotive industry. Lorents Burman (S), mayor, states:
– This is not just about a factory. It is about the future of thousands of people, about Sweden's green industrial credibility and about the EU's ability to stand on its own two feet in the new geopolitical energy map where batteries are a strategic infrastructure.
Burman further elaborates:
– Today, all of Europe is aware that it takes time to build a stable value chain. If the state can guarantee temporary bridge financing for a few months, the factory that has come the furthest in European development can continue to manufacture batteries that are such an important part of the electrification of society. Sweden currently has the EU's most advanced production capacity with operations already in operation in Skellefteå. Quickly activating an EU programme is a crucial prerequisite for continuing to be able to build up battery cell production, and not only in Sweden but in several EU countries.
The press release also notes that Skellefteå municipality's crisis organisation has been activated since September last year, with various efforts made to assist those affected. Kristina Sundin Jonsson, city manager, comments:
– This is more very sad news and now there will be even more residents who have an uncertain time ahead of them. At the same time, I am very hopeful that the bankruptcy trustee will find a new owner for the business, as it has all the strategic continuations to be able to become a successful factory.
Sundin Jonsson adds:
– We also know that the EU sees this as a strategic project, and we are well aware of the package that is being developed within the EU. We are also helping in the work of getting a new owner in place, as this is of the highest priority.
We still have some time, although time is running out. I understand that many in Skellefteå feel sadness on a day like this, at the same time that we must look up and see everything that has been achieved. Skellefteå's development will continue.
UPDATE: 14:45, THURS
Helene Hellmark Knutsson, County Governor of Västerbotten, stated in a press release:
"This is very sad but unfortunately not unexpected news. It is now important that employees who lose their jobs receive strong support from the authorities, and that the collective efforts to manage the bankruptcy's consequences continue with full force.
She emphasised that this situation represents a severe blow to the green transition and Europe's ability to strengthen its competitiveness against China."
UPDATE: 14:28, THURS
Northvolt will scale back production during June, bankruptcy trustee Mikael Kubu announced at a meeting with staff on Thursday.
This means that the workforce will also be scaled down.
Who will be needed to work in June, and who will be laid-off, will be decided on Monday, according to information provided to Norran.
– Kubu says that the production of cells has never been better than during the bankruptcy, with only a third of the staff, says an employee who attended the meeting to Norran
– We are negotiating Northvolt Ett with a potential buyer, and we hope to know more on Wednesday or Thursday next week if it is finalised, the employee says.
Norran's sources indicate that Northvolt Labs in Västerås appears to have a prospective buyer.
During the meeting, employees were also informed that Scania is ceasing its relationship with Northvolt, with a new supplier taking over from June 1. It was also announced that Northvolt will manufacture a spare parts warehouse for Scania during June, coinciding with downsizing. Additionally, Revolt is in the process of shutting down and emptying its systems to prevent equipment damage.
Revolt also has a new, interested potential buyer, and it looks promising, according to several sources for Norran.
Mikael Kubu.
In a press release, bankruptcy trustee Mikael Kubu writes:
There are stakeholders and speculators for the various businesses within the Northvolt Group. Discussions and negotiations are ongoing, at different stages for different operations, and sales have already occurred for a portion of Northvolt System AB's operations.
Regarding battery cell production in Skellefteå (Northvolt Ett's production), a due diligence process is currently underway. However, the bankruptcy estate does not foresee any immediate prerequisites for a buyer to take over production in the near future.
The bankruptcy estate has managed to continue battery cell production with a reduced workforce thanks to the support of the existing customer. This arrangement, however, is not sustainable long-term for a single stakeholder, and thus not for the bankruptcy estate.
Consequently, there will be a gradual ramp-down of battery cell production at Northvolt Ett, with the goal of ceasing operations on June 30. The efforts to find a buyer are ongoing.
UPDATE: 12:20, THURS
Ekot reports that Scania is Northvolt's sole remaining customer, with all other clients having already departed, based on documents it has reviewed. Should Scania cease battery purchases, production in Skellefteå could halt entirely due to a lack of customers.
Efforts are reportedly underway to keep the factory operating at a minimal level. This aims to prevent machinery deterioration and facilitate a smoother handover for a potential new owner. Approximately 900 employees remain at the factory following the bankruptcy.
Northvolt staff have been called to a meeting this Thursday lunchtime, though it's uncertain if an official announcement will be made.
A source has told Norran that rumours have circulated since Scania signed a new contract with the Chinese battery-maker CATL, and there have been indications over the past week that production might be ending. Yesterday, Northvolt's director of quality reportedly confirmed that Scania hasn't signed a new contract for June.
Know more? Call Norran at 0910-57 800 or email/text your tip to tipsa@norran.se or paul.connolly@norran.se