The Chaos at Northvolt Hits Local Businesses

The battery manufacturer Northvolt's crisis affects subcontractors. Over the weekend, Stena Recycling in Skellefteå laid off around 60 people. Many other companies are affected. We have only seen the beginning of the layoff wave, says Mattias Broman, CEO of Nordelektro.

» Published: October 14 2024

The Chaos at Northvolt Hits Local Businesses
Photo: Pontus Lundahl/TT

Northvolt's crisis is becoming increasingly tangible for the company's subcontractors. Nordelektro, with 165 employees, has been working on electrical installations at the gigantic factory area in Skellefteå since 2020.

We've had problems from day one getting paid. I say I have a self-destructive behavior, that I've gotten myself into it again, says Mattias Broman.

Hoping for payment

Last week, Northvolt's subsidiary Ett Expansion went bankrupt with debts of several billion kronor. This includes debts to Nordelektro.

Those most affected by Expansion's bankruptcy are regional and local entrepreneurs. They have burned the local business community, says Broman.

Broman hopes that Northvolt will survive.

I hope they resolve the financing now. And that they have the good sense not to just pay the state's taxes and VAT, but to have the civil courage to actually pay their entrepreneurs, he says.

Over the weekend, Stena Recycling, which works with handling production waste from the factory area, notified around 60 people of layoffs.

"Only seen the beginning"

It is still unclear whether Nordelektro will also need to lay off employees. The company has had assignments for Northvolt's sphere worth tens of millions of kronor. Broman says he has become more cautious due to the turmoil, partly by demanding advance payments and partly by trying not to become too dependent on the company. He has also managed to relocate the workers to other locations. But the crisis could be a significant blow to the local business community, he estimates.

If it becomes a complete shutdown of the factory for a year or so before they get going again, it will be quite tangible in 2025. We've only seen the beginning of the layoff wave, I think.

Multiple layoffs

Mona Burlin at the Employment Agency in Skellefteå says that layoffs are starting to be noticed in the subcontractor chain. By the end of last week, between five and ten companies had notified a total of 140 employees, linked to Northvolt.

It's not certain that it will lead to layoffs. They may get new assignments or customers. But it's noticeable that it's affecting, she says.

On October 25, a first recruitment meeting will be held in the city between companies seeking personnel and individuals who have lost their jobs.

Everyone is really pulling together and wants to do something to try to solve it for as many as possible, says Mona Burlin.

Tags

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

More news

Weekend Push for New Industrial
2 MIN READ

Weekend Push for New Industrial Agreement as Deadline Looms

Swedes Opt for Europe as
3 MIN READ

Swedes Opt for Europe as US Travel Bookings Drop 30 Percent

Energy Efficiency Boosts Villa Prices
1 MIN READ

Energy Efficiency Boosts Villa Prices in Sweden's Real Estate Market

Elon Musk's XAI Acquires Platform
1 MIN READ

Elon Musk's XAI Acquires Platform X in Major Tech Move

Inflation Concerns Drag Down Wall
1 MIN READ

Inflation Concerns Drag Down Wall Street Indices

Sweden Seeks New Investors for
1 MIN READ

Sweden Seeks New Investors for Bankrupt Northvolt Battery Firm

US Inflation Surprises with Higher
1 MIN READ

US Inflation Surprises with Higher Than Expected February Rate

Li Ka-Shing Halts Sale of
1 MIN READ

Li Ka-Shing Halts Sale of Panama Canal Ports Amid Beijing Pressure

Princess Madeleine Addresses Criticism Over
2 MIN READ

Princess Madeleine Addresses Criticism Over New Skincare Venture

Stockholm Stocks Slide 4.5 Percent
1 MIN READ

Stockholm Stocks Slide 4.5 Percent in a Week as US Inflation Hits

French Inflation Dips Below Expectations,
1 MIN READ

French Inflation Dips Below Expectations, Impacting ECB Decisions

Cautious Consumer Spending Sees Slight
1 MIN READ

Cautious Consumer Spending Sees Slight Uptick in Sweden's Retail Sales

SSAB Faces Financial Supervisory Authority
1 MIN READ

SSAB Faces Financial Supervisory Authority Probe Over Reporting Rules

79,000 Swedes Face Student Debt
1 MIN READ

79,000 Swedes Face Student Debt with Enforcement Authority in 2024

Royal Expert Questions Princess Madeleine's
3 MIN READ

Royal Expert Questions Princess Madeleine's Skincare Venture

Gold Prices Reach New Heights
1 MIN READ

Gold Prices Reach New Heights as Trade Tariff Concerns Grow

Asian Markets Tumble as Investors
1 MIN READ

Asian Markets Tumble as Investors Brace for New US Tariffs

Trump's Tariff Plan Could Drive
2 MIN READ

Trump's Tariff Plan Could Drive Up Car Costs, Impact US Market

Ubisoft and Tencent Invest $1.25
1 MIN READ

Ubisoft and Tencent Invest $1.25 Billion in New Gaming Subsidiary

Sweden to Build Major Carbon
2 MIN READ

Sweden to Build Major Carbon Capture Facility in Stockholm by 2028

Wall Street Dips as US
2 MIN READ

Wall Street Dips as US Car Giants Slide on New Tariff Announcement

Vattenfall Prepares Autumn Application as
2 MIN READ

Vattenfall Prepares Autumn Application as Sweden Backs Nuclear Expansion

US Car Tariffs Threaten Swedish
2 MIN READ

US Car Tariffs Threaten Swedish Auto Industry, Warns Dousa

Nordic Nations Unite to Tackle
1 MIN READ

Nordic Nations Unite to Tackle Unsafe Products from Temu and Shein

Volvo Recalls 73,000 Hybrids Over
1 MIN READ

Volvo Recalls 73,000 Hybrids Over Fire Risk in Battery Charging

Four Charged in Nasdaq Stockholm
2 MIN READ

Four Charged in Nasdaq Stockholm Insider Trading Scandal

European Car Stocks Drop After
1 MIN READ

European Car Stocks Drop After US Tariff Announcement

Trump Warns EU and Canada
1 MIN READ

Trump Warns EU and Canada of Higher Tariffs Over Economic Moves

Sweden's FI Pushes for Clearer
1 MIN READ

Sweden's FI Pushes for Clearer Mortgage Rate Discount Notices

Trump's Trade Tariffs Add Pressure
2 MIN READ

Trump's Trade Tariffs Add Pressure to H&M's Struggling Sales

US Implements 25% Car Tariffs
2 MIN READ

US Implements 25% Car Tariffs to Boost Domestic Production

Sweden to Cut Ties with
3 MIN READ

Sweden to Cut Ties with Underperforming Job Placement Firms

US Tariffs Trigger Global Stock
1 MIN READ

US Tariffs Trigger Global Stock Market Dip; Volvo and Banks Hit Hard

SBAB Increases Fixed-Rate Mortgage Interest
1 MIN READ

SBAB Increases Fixed-Rate Mortgage Interest by 0.10 Points

Second-Hand Market Sees Over 40
1 MIN READ

Second-Hand Market Sees Over 40 Percent Drop in February

Tokyo Stocks Dip as US
1 MIN READ

Tokyo Stocks Dip as US Tariff Threats Shake Asian Markets

Japanese Car Stocks Tumble After
1 MIN READ

Japanese Car Stocks Tumble After Trump's Tariff Announcement

US Considers Lower Tariffs for
1 MIN READ

US Considers Lower Tariffs for China in Tiktok Sale Deal

Trump's Vehicle Tariffs Spark EU
2 MIN READ

Trump's Vehicle Tariffs Spark EU Regret and Market Reactions

Wall Street Dips as Traders
2 MIN READ

Wall Street Dips as Traders Brace for Trump's Tariff Announcement