Heavy decision on Northvolt this week

The battery manufacturer Northvolt, which was declared bankrupt last week, is facing a crucial decision. The bankruptcy trustee expects to be able to determine within the next few days whether the operations will be shut down or not.

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Heavy decision on Northvolt this week
Photo: Jonas Westling/TT

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"We are working intensively to try to find conditions for continuing the operations. A decision on this will be made during the current week", writes the administrator Mikael Kubu in an email to TT.

The statement is made since Kubu last week flagged that the primary task was to hold talks with Northvolt's major customers, to see if it is possible to continue the operations in the hunt for buyers of assets or operations.

Production underway

Production at the battery factory in Skellefteå was paused for a day in connection with the bankruptcy application on Wednesday, March 12, when the staff was informed about the development.

Since Thursday morning, at seven o'clock, we started again. So now we are running production and it is on behalf of the administrator, says Matti Kataja, communications manager at Northvolt.

The overall picture is that we have seen a positive trend during the past year, which has continued into the new year. And so far, we have delivered according to our customer contracts, he adds.

He does not want to comment on how the order book or order intake looks like now.

It's not something we comment on in detail, our customer contracts. And we don't share production figures in detail.

Uncertain situation

At the battery factory in Skellefteå – the main facility in the Northvolt group – almost 3,000 people work, according to Kataja. He adds that he has not received any signals that a larger number of employees have chosen not to go to work or resigned in the uncertain situation that prevails.

I have no such information, he says.

Northvolt applied for and was declared bankrupt after the company, under Chapter 11 protection in the USA, had tried for several months to get a debt reconstruction and find new capital to continue the debt- and loss-burdened operations.

Besides the nearly 3,000 employees in Skellefteå, the company has hundreds of employees in, among other places, Stockholm and Västerås.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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