Home HomeSwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Northvolt buys time – tax debt paid

Crisis-stricken Northvolt has bought itself some breathing room by paying what the company owed to the Tax Agency. However, a long-term solution to the battery manufacturer's financing is still not in place. And at the Enforcement Authority, large Northvolt invoices are piling up.

» Updated: 14 October 2024, 15:32

» Published: 14 October 2024

Northvolt buys time – tax debt paid
Photo: Pontus Lundahl/TT

"We have already paid the tax, as we said last week that we would do", writes the company's press chief Matti Kataja in an SMS to TT.

"As I said earlier, we hope to be able to share more information as soon as possible regarding the financing", writes Kataja.

This after he last week said that Northvolt had made "significant progress" in the negotiations with owners, lenders, and customers regarding the financing of the business going forward.

Negotiating billions in support

According to the news agency Reuters, the goal is to bring in 200 million euros (approximately 2.3 billion kronor) and according to the news agency Bloomberg's sources, verbal promises of 150 million euros are already in place.

The deadline for paying the Tax Agency – VAT, employer contributions, and tax for six companies in the group, totaling 287 million kronor – expired on Monday. Had this not been paid, Northvolt would have been forced to apply for bankruptcy or reconstruction to protect the board members from becoming personally liable.

Northvolt, together with five of its subsidiaries, has around 360 million kronor in unpaid invoices noted as payment orders with the Enforcement Authority. Most of this, 278 million, is delayed payments that the bankrupt Northvolt Ett Expansion would have made.

Has notified 1,600 employees

In parallel with the negotiations for new battery orders, loans, and new capital, Northvolt is negotiating with union representatives about the layoffs of 1,600 employees that the company notified about in September – the majority of which are in Skellefteå.

An agreement is expected to be reached on that front this week.

Some kind of layoffs will occur, says Lena Lundgren, local coordinator for the IF Metall union.

Municipal director Kristina Sundin Jonsson says that it has been hectic weeks since the notification.

We know that local and regional companies will be severely affected. There may be bankruptcies and layoffs, she says.

Currently, a mapping of how other local companies are affected by the turmoil is underway.

Our role right now is to be a link and ensure that the measures that need to be taken are also taken. And very, very quickly. We are in a type of crisis now, she says.

Joakim Goksör/TT

Gustav Sjöholm/TT

Background: Northvolt in Skellefteå

TT

Battery manufacturer Northvolt has around 3,500 employees at the factory in Skellefteå.

IF Metall has around 2,000 members at Northvolt and has been negotiating about how the downsizing should be implemented since the end of last week. The Swedish Association of Engineers and Unionen also have many members at Northvolt who are affected.

Northvolt has also paused several large projects since the notification was made in September and has also applied for bankruptcy for the subsidiary Northvolt Ett Expansion, with several billion in debt.

Tags
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Inflation in October "higher than expected"
1 MIN READ

Inflation in October "higher than expected"

Calm opening expected on the stock exchange
1 MIN READ

Calm opening expected on the stock exchange

Most up on Asian stock exchanges
1 MIN READ

Most up on Asian stock exchanges

This is how your wallet can be affected by Trump's victory
2 MIN READ

This is how your wallet can be affected by Trump's victory

Cheerful on Wall Street after Trump win
1 MIN READ

Cheerful on Wall Street after Trump win

Thousand-kronor notes to be picked up when the Central Bank increases the pace
3 MIN READ

Thousand-kronor notes to be picked up when the Central Bank increases the pace

Swish up and running again after disruption
1 MIN READ

Swish up and running again after disruption

Trump's company is soaring on the stock exchange
1 MIN READ

Trump's company is soaring on the stock exchange

Swedish Export Threatened by Trump Victory
2 MIN READ

Swedish Export Threatened by Trump Victory

Sameby's appeal against mining company rejected
1 MIN READ

Sameby's appeal against mining company rejected

Inflation Expectations Fall
1 MIN READ

Inflation Expectations Fall

Better than expected for Novo Nordisk
1 MIN READ

Better than expected for Novo Nordisk

No "Trump Effect" on the Stockholm Stock Exchange
1 MIN READ

No "Trump Effect" on the Stockholm Stock Exchange

Stock Market Euphoria as Trump Heads for Victory
2 MIN READ

Stock Market Euphoria as Trump Heads for Victory

Rush on the Tokyo Stock Exchange after the election night
1 MIN READ

Rush on the Tokyo Stock Exchange after the election night

Bitcoin hits new record
1 MIN READ

Bitcoin hits new record

Upward trend on the New York Stock Exchange
1 MIN READ

Upward trend on the New York Stock Exchange

Colombia Buys Jas Gripen
2 MIN READ

Colombia Buys Jas Gripen

Now more wind power on land is required
2 MIN READ

Now more wind power on land is required

High Pressure Causes Electricity Prices to Soar
1 MIN READ

High Pressure Causes Electricity Prices to Soar