Battery Company Northvolt Continues Its Operations
The battery company Northvolt has been experiencing production problems and financial losses recently. Most of the company's employees work at its factory in Skellefteå in northern Sweden, where mass layoffs were announced this fall. (Photo: Northvolt)
After an extraordinary general meeting, the shareholders of Northvolt decided to allow the company to continue its operations for up to eight months.
On Wednesday this week, the shareholders of the battery company Northvolt voted for the company to continue its operations. That is reported by Radio Sweden.
The Swedish battery company faces significant financial difficulties and has filed for Chapter 11 reorganization in the US to access new funding.
Radio Sweden reports that the company will now have eight months to improve the economic situation to avoid liquidation in the next general meeting.
"This entails that the operations in both Skellefteå and Västerås can continue," says Anders Oscarsson, stock manager at the pension company AMF, to the broadcaster about the shareholders’ decision. AMF is one of Northvolt's shareholders.
Northvolt operates its main factory, Northvolt Ett, in the northern Swedish city of Skellefteå and has around 5,000 employees in Sweden. The company has also launched plans for factories abroad, including in Germany, Poland, and North America.
Swedish SVT writes that the company expects to complete the reconstruction in the US during the first quarter of this year. According to the national broadcaster, the company has SEK 60 billion in debt.