Northvolt bankruptcy worries in Skellefteå

Only hours after Northvolt's bankruptcy on Wednesday, the Korean Dongjin notified all employees in Skellefteå of termination. More are to be expected, fears municipal director Kristina Sundin Jonsson. It is clear that we will see many ripples on the water, she says.

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Northvolt bankruptcy worries in Skellefteå
Photo: Gustav Sjöholm/TT

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According to Norran, it concerns 25 people who are being laid off by Dongjin, which manufactures a coal nanorod-slurry used as raw material in Northvolt's batteries.

When Northvolt laid off staff last autumn, it quickly led to several local companies issuing their own layoff notices. Now that the entire Swedish Northvolt operation is going bankrupt, the consequences are likely to be even greater.

It's clear that this is a huge blow to Skellefteå. This is the largest industrial bankruptcy in Swedish history, says Kristina Sundin Jonsson.

She fears that more negative news is in store for the local business community.

Locally, regionally, nationally, and internationally, the business community will be affected in different ways. And we haven't seen the last effects yet, she says.

Around 2010, Skellefteå reversed a negative population trend and has since grown.

In Skellefteå, we've had crises before, we've been able to handle them well. But this is a crisis that will require national engagement, says Sundin Jonsson.

She hopes that the bankruptcy administrator will continue to operate the business until someone else can take over.

Currently, we have a functioning battery production in Skellefteå. There are both products and customers. So we hope to find a solution as soon as possible, she says.

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

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