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.

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TTT
By TT - Translated and adapted by Sweden Herald under license from TT

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