Marie Nilsson
UPDATE: THURSDAY, 15:00
700 illegal buildings must go
Northvolt has been instructed to dismantle 700 housing modules it constructed without proper permits on its factory site. The company faces substantial fines if it fails to comply.
To avoid penalties, Northvolt must promptly remove the modules and cease all activities within them, including their use as offices and changing rooms.
– They must not be used, says Enar Nordvik at Skellefteå municipality.
UPDATE: THURSDAY, 08:40
Barracks removed from Northvolt: "It will be difficult to work now"
Cramo, a rental company, has issued notices to vacate barracks in the Northvolt area of Skellefteå. The notices state that the barracks must be emptied of equipment and personnel by October 15. Equipment left after this date may be disposed of. 'Cleaning, disconnection, de-establishment, and transport will begin shortly,' the notices read. According to sources, the removals are due to non-payment by Northvolt.
Mikael Stenmark, the primary safety representative for IF Metall at Northvolt Ett, believes that most of the barracks in the area are affected by the removal notices.
The barracks serve as changing rooms and offices. With their removal, there will be a significant shortage of these essential facilities. This could limit employees' ability to work in the field, as changing rooms are crucial for putting on protective equipment.
Stenmark acknowledges the challenges this presents. He says:
– This is a new situation for me: it's difficult to predict the future for Northvolt.
UPDATE: WEDNESDAY, 13:35
Press conference with municipality
City manager Kristina Sundin Jonsson discussed recent developments. A steering group has been formed, comprising representatives from Skellefteå municipality, Länsstyrelsen Västerbotten, Region Västerbotten, Tillväxtverket and Arbetsförmedlingen.
– We believe this collaborative approach is highly effective. It allows us to address both short-term and long-term challenges, says Sundin Jonsson.'
– Our aim is to help those affected remain in the region by finding new jobs or training opportunities.
Monday's bankruptcy announcement has influenced the steering group's focus.
– We're examining the impact on local and regional businesses, says Sundin Jonsson.
– We're also exploring available tools to support companies affected by this situation.
The steering group is working closely with the government which has also appointed a task force.
– Our ultimate goal is to help as many people as possible secure employment in alternative workplaces, she states.
The steering group is considering different possibilities.
– We have analysts from various organizations assisting us. We strive for transparency and openness in our work.
Therefore, they plan to hold regular press conferences starting now.
– This format will continue, although the specific individuals may vary. It might not always be the steering group members; representatives from Tillväxtverket and Arbetsförmedlingen could also participate.
UPDATE: 18:01
Northvolt must pay taxes owed by next Monday or be wound-up
By Monday at the latest, Northvolt must pay 287 million kronor to Skatteverket (Swedish Tax Agency), the authority confirms to SVT Nyheter Västerbotten.
The sum pertains to VAT, employer contributions, and deducted taxes for the group's six largest companies.
If Northvolt fails to meet these tax obligations, bankruptcy proceedings may be initiated, potentially holding management personally liable for the outstanding amounts, according to SVT.
Alongside the impending payment to Skatteverket, the backlog of cases at Kronofogden has surged significantly. Last week alone, outstanding debts exceeded 120 million kronor in payment orders.
UPDATE: 15:45
"The risk of not getting paid creates concern and questions"
Skellefteå municipality is working to assess the extent to which local companies are impacted by the bankruptcy of Northvolt Ett Expansion AB, it says in a press release.
The municipality encourages businesses with existing relationships to reach out to the business office.
Anja Palm, head of the business office at Skellefteå municipality, said:
– Many local companies have entered with heart and soul to support the expansion of the battery factory. The risk of not getting paid for one’s claims naturally creates concern and questions.
The assessment will guide municipal actions and the involvement of state and regional actors.
Lorents Burman (S), mayor, said:
– We want to map how different actors can potentially contribute to softening the blow for the companies that are at risk of bankruptcy.
The press release concludes by inviting specific companies to contact the bankruptcy trustee, saying:
– The municipality is working to produce relevant information to support affected local businesses and will offer various forms of dialogue meetings with industry organizations. Suppliers with claims on the company should contact the bankruptcy trustee at the Stockholm district court.
UPDATE: 15:07
Northvolt's letter to subcontractors: "We regret"
Matti Kataja, Northvolt’s press officer, stated that the group had been seeking a solution to Northvolt Ett Expansion's problems for weeks.
– Unfortunately, this was unsuccessful, and the application for bankruptcy for the subsidiary running the Ett Expansion project was submitted early this morning, he wrote in an email to TT news.
The bankruptcy is described as a "necessary step" to prevent risks to Northvolt’s financial foundation.
In a letter to subcontractors, the subsidiary’s management expressed regret:
– As representatives of the company, we regret having to submit this application. This was an extremely difficult decision for the board.
UPDATE: 14:58
Union president: "A long time since I've seen such large cutbacks"
On Tuesday, IF Metall’s union president Marie Nilsson met with members at Northvolt. The meeting had been scheduled earlier and was not related to the news of the bankruptcy filing by one of Northvolt’s subsidiaries.
– I’ve been here meeting some employees and, above all, local union representatives, says Marie Nilsson.
She adds that there is no new information regarding the 1,000 people previously notified of layoffs at Northvolt in Skellefteå.
– These are anxious times, but there’s also a strong commitment from staff to get production back on track.
IF Metall represents around 2,000 members at Northvolt, and according to Marie Nilsson, it's been a long time since the union has been involved in cutbacks of this scale.
UPDATE: 14:35
Skellefteå municipality has held a press conference
Lorents Burman, Anja Palm, Fredrik Andersson, and Kristina Sundin Jonsson.
"Our goal remains long-term development"
Skellefteå mayor, Lorents Burman, points out that Skellefteå is a leader in the green transition and has been on a growth journey for ten years.
– Our goal remains the long-term development of Skellefteå. Despite current challenges, our substantial assets, resourcefulness, competence, and thriving business community provide a solid foundation for future growth.
"We're still mapping out how many are directly affected"
When the major announcement came, Skellefteå's business office quickly stepped in to offer support, says Anja Palm, head of the department.
– We’ve listened to the concerns from companies, regarding unpaid invoices and potential incomplete orders, says Palm.
They are now assessing the impact on businesses.
Anja Palm
– Around 300 subcontractors have worked at Northvolt's site, with an estimated 80 being local companies. We're still mapping out how many are directly affected by today's bankruptcy, she explains.
She also outlines the municipality's efforts:
- Support for affected employers.
- Recruitment and matching opportunities.
- Strengthening the region's business community and capturing ideas.
"This could certainly lead to layoffs"
Fredrik Andersson, chairman of Byggföretagen (Construction company association), speaks:
– Many of our members are severely impacted by today's bankruptcy. This could certainly lead to layoffs or even bankruptcies; we shouldn’t shy away from that reality.
The construction companies have issued a survey to their members to assess the effects.
Andersson also highlights Skellefteå’s significant housing shortage as a potential opportunity for construction companies, noting that the local construction industry hasn’t yet experienced the same downturn as seen in southern Sweden.
– The municipality, county council, and other investors are continuing to support the ongoing expansion, despite the recent challenges, he said.
– Just two years ago, Skellefteå had 6,000 fewer residents, and the city functioned well. I believe the current concerns are being overstated.
UPDATE: 12:05
Northvolt, Northvolt Ett in Skellefteå. Drone image. 2024-09-11. In the foreground: the building Upstream 1, which is closing indefinitely.
"2024 will be a big black hole for us"
The company BST is one of the subcontractors affected by the bankruptcy notice. The company offers design, installation, service, and maintenance of fire protection systems. CEO Martin Svensson has been notified about the bankruptcy filing.
– We don't know exactly what will happen. We'll have to wait and see what happens. But we will suffer great financial damage if the company is declared bankrupt, he says.
He does not want to comment on exact amounts but refers to the company's cases managed by Kronofogden. When Norran reviews documents from the Crown Bailiff, we find a payment order of 15,413,795 kronor and another of 46,568 kronor.
– We have our requirements, which have been sent to the Kronofogden. Then there are other accrued costs to take into account, he says.
However, it is clear that today's announcement means a large financial loss for BST.
– We have secured our financing, and we will manage our survival. This does not mean that we risk being put into restructuring or bankruptcy. But the year 2024 will be a big black hole for us, says Svensson.
UPDATE: 11:32
"I’m not too worried; we aren’t dependent on Northvolt"
Samim Beyat of Firesafe says he not too concerned but many others may lose their jobs.
On Tuesday morning, shortly after the bankruptcy notice for one of Northvolt's subsidiaries, the atmosphere around the factory in Skellefteå is calm.
– It’s quiet here these days, says an employee of Firesafe, a private company that provides fireproofing for the battery factory.
– We shouldn’t be directly affected by this bankruptcy, if we understand it correctly. But we’re uncertain because we haven’t heard anything yet, so we might be more affected than we realize, the employee, who wishes to remain anonymous, explains.
– However, because some are affected, the entire business feels the impact. There’s already a chain reaction happening, he adds.
He notes that their work sometimes depends on other companies, such as the scaffolding provider in the area. This provider has not received payments, so they aren’t currently working, even though they remain on-site.
– Everyone is affected, even if they aren’t directly involved, he says.
The employee mentions that this situation isn’t unique to them, as they've heard of other contractors who also haven’t been paid by Northvolt.
When Firesafe began working with Northvolt, there was ample work secured for the long term.
– We don’t have as many projects now, and everything feels more uncertain, says his colleague, Samim Beyat.
Samim, however, expresses confidence in their situation.
– I’m not too worried; we aren’t dependent on Northvolt. So far, I feel secure, he says.
UPDATE: 10:55
Bankruptcy trustee: "Between two and three billion in debt"
Attorney Jonas Premfors at DLA Piper in Stockholm has been appointed bankruptcy administrator for Northvolt Ett Expansion AB.
Jonas Premfors of DLA Piper
– It's important to note that this is a subsidiary company with an ongoing construction project, Premfors said.
– Unfortunately, bankruptcy was the only viable option, and our task is to find a buyer for the project.
Could the company continue?
– The company will not continue, unless Northvolt itself is interested in acquiring it, Premfors said.
– However, this particular subsidiary has been declared bankrupt.
Who is affected?
– The bankruptcy primarily affects suppliers, construction companies, and equipment suppliers, Premfors said.
How does this affect Northvolt?
– Northvolt, as the company's investor, has lost its money. The creditors will now receive the assets, not the shareholders.
How big are the debts?
– The estimated debts are between 2 and 3 billion, but this is a rough estimate.
(Editor's note: 3 billion kronor is approximately $290 million or €263 million)
What are the assets worth?
The annual report shows assets of around 10 billion, but their current value may be diminished due to the unfinished state of the project.
How long will the bankruptcy process take?
– This is a large bankruptcy with significant assets and liabilities.The process is likely to take some time, potentially more than a year. Our initial focus will be on familiarizing ourselves with the assets and liabilities and exploring potential sales.
UPDATE: 10:20
"I'm worried for Northvolt, for us and for the whole town"
The subcontractor Cramo has collaborated with Northvolt since the beginning. Communications manager Ola Rantatalo says he has reviewed the information and that it does not come as a shock.
– It is regrettable from several perspectives. Partly for Northvolt as a company, for us, and for the entire region and city. But at the same time, it has been hinted in the media that things were heading in this direction, he says.
He emphasizes that the company had a close dialogue with Northvolt Ett.
– We have had a good dialogue, even when they have faced these problems and challenges.
However, today's announcement of the bankruptcy of the subsidiary Northvolt Ett Expansion AB clearly affects them. Approximately 25 percent of Cramo's ongoing projects at the site are linked to this company.
– That is a significant portion, but we also have other commitments to Northvolt's other subsidiaries that are not affected by the bankruptcy.
Now they are actively investigating the consequences this may have for Cramo.
– Obviously we have a contract but in the event of bankruptcy, everything is a bit up in the air. Now we need to see how this turn of events affects our agreement and what consequences this has for our commitments to this particular subsidiary, he explains.
Do you have any idea today of how you will be affected?
– It is a bit early to say what this bankruptcy means from our perspective. But we have a team in place that is in dialogue with Northvolt about which projects might need to be mothballed; however, we don't have any details right now.
What consequences can it have?
– I can’t say for certain, but Northvolt is a very important customer for us. We have cooperated with them from the start. However, we have many other projects in town and in other areas of the region.
Are you worried?
– It’s natural to feel concerned. I'm worried for Northvolt, for us and for the whole town. Many who work for us have their roots in Skellefteå.
However, Ola Rantatalo is clear that there is no question of layoffs or dismissing employees.
– I am not worried about finding employment. We have no plans to let people go or thoughts of redundancies regarding our staff, he says.
In the past, subcontractors have feared not being able to retrieve their machinery from the area. Is that a concern you have?
– No, we have not encountered any such problems. We have always had the necessary permits to enter and exit the area. There is no known concern on our part. We at Cramo have not experienced those issues.
How do you proceed now?
Northvolt Ett, Skellefteå. Upstream Ett, Upstream 1. Northvolt announces layoffs. 2024-09-09.
– We have an agreement, and we expect Northvolt to uphold that agreement in the same way that we do. So far, everything is going well, but we are closely monitoring the entire situation and exploring how to address any issues that arise.
UPDATE: 10:00
Norran has examined the bankruptcy documents for Northvolt Ett Expansion AB, a subsidiary of Northvolt. The application was filed with the Stockholm District Court at 8:00 AM on Tuesday.
In the application, Northvolt proposed a specific lawyer in Stockholm to serve as the bankruptcy administrator, citing the lawyer's extensive experience in the automotive sector.
The company emphasized the lawyer's expertise in handling large-scale bankruptcies and their international presence and competence.
The application was signed by Fredrik Hedlund, CEO of Northvolt Ett Expansion AB, and Peter Carlsson, chairman of the company.
Within an hour of submission, the court approved the application, declared the subsidiary bankrupt, and appointed the requested lawyer as the bankruptcy administrator.
UPDATE: 09:52:
Norran has been unable to obtain comments from municipal councilor Lorents Burman (S) and municipal director Kristina Sundin Jonsson regarding the bankruptcy.
Emelie Sjölund, a press communicator for the municipality, could not confirm whether the news came as a surprise. When asked if the municipality had received prior notice, she replied:
– I cannot say whether anyone was aware of this beforehand. We need to discuss this further. More information will be available at the press conference.
The press conference will take place at 14:00 today.
UPDATE: 09:15
– Northvolt Ett Expansion, one of Northvolt's 20 subsidiaries, was tasked with expanding the Skellefteå factory, said a company spokesperson.
– However, the expansion project was halted on September 23, and the subsidiary has now filed for bankruptcy.
In a letter to affected suppliers, Fredrik Hedlund, CEO of Northvolt Ett Expansion, and Dennis van Schie, chief supply chain officer, expressed regret over the decision.
– Shutting down the subsidiary was a difficult choice for the board, they wrote.
Northvolt has clarified that the bankruptcy will not impact the operations of the rest of the group, and production at the Skellefteå factory will continue.