According to Bloomberg News, Swedish battery manufacturer Northvolt has filed for bankruptcy protection for its subsidiary Northvolt Ett Expansion AB to weaken the financial impact of the company’s suspension of expansion in northern Sweden.
Photo source: Northvolt, according to a statement dated October 8, Northvolt Ett Expansion AB was previously responsible for the project construction of Northvolt’s Skelleftea flagship factory.
Northvolt said last month that it would suspend plans to expand the Scheref Agent plant on a large scale and concentrate resources on battery production at the plant.
A Northvolt spokesperson said in an email,”We have been working hard for weeks to find a solution.
Unfortunately, we were not successful, so we have filed for bankruptcy for our subsidiary.
“, According to Swedish news magazine Affarsvarlden, Northvolt’s subsidiary that filed for bankruptcy has a total debt of 460,000 Swedish kronor registered with the Swedish Enforcement Agency, with a maturity date of October 7.
Bloomberg reports pointed out that Northvolt is currently trying to stabilize its financial situation, and the divestiture of Northvolt Ett Expansion AB from its head office may buy Northvolt time to make broader financing.
However, the move also shows that Northvolt is facing greater pressure and may anger suppliers, who may not be able to recover their purchases.
The company said it will continue to conduct strategic reviews to strengthen its core business.
“We are financing and will provide more information later.
“, Northvolt said Northvolt Ett Expansion’s bankruptcy filing was not related to its other legal entities.
In a letter to suppliers, Northvolt said that some of the affected suppliers also do business with other Northvolt divisions.
The company “strongly hopes” to maintain these relationships and urges suppliers to “continue to be in contact with us regarding product supply in the normal manner.
” In addition, Northvolt will “continue to engage in dialogue with stakeholders to continue working together in the ongoing operations of the Northvolt Group.
“, Return to the first electric network home page>,.
