Northvolt has signed a letter of intent with Stora Enso to acquire the previously closed facility Kvarnsveden
It was in April 2021 that Stora Enso announced that Kvarnsveden’s paper mill would be closed. Now, almost a year later, it is clear that Northvolt is establishing one of its factories on the site. Northvolt, which manufactures lithium-ion batteries for electric cars, among other things, will produce cathode material for batteries and battery cells in the Borlänge-located factory. As early as 2024, Northvolt wants to start production and expects to have to employ up to 1,000 people.
– This is extremely important for Borlänge and Dalarna. It really strengthens our position as a city and a region where the modern, green industry is the basis for our continued development and growth. In many ways, it can be said that it will now be a new Borlänge and we warmly welcome Northvolt to us, says Jan Bohman (S), chairman of the municipal board.
Part of Borlänge’s development
Northvolt, which is in a very expansive phase, will now build a factory in Borlänge.
– Since the start, Northvolt has focused on circular production, but this is the first time we will reuse an existing industrial property. The access to energy, industrial water and the region’s broad industrial competence make Kvarnsveden an optimal place for a gig factory. We look forward to participating in creating this new chapter in Borlänge’s history as a global industrial hub, says Peter Carlsson, CEO and co-founder of Northvolt.
See new opportunities
Shortly after the announcement that the paper mill would be closed down, Stora Enso began work to find a replacement business.
– Since our decision to close the facility, we have focused on finding a new owner who can take over Stora Enso’s long and sustainability-oriented heritage at Kvarnsveden and in the local community. Northvolt delivers, just like Stora Enso, modern and innovative solutions that contribute to a climate-friendly future. Through the agreement, Kvarnsveden will continue to contribute with growth, both for Northvolt and Borlänge, says PerLyrvall, Sweden manager at Stora Enso.
Since the announcement, the municipality has expressed its desire for a solution that benefits Borlänge’s development.
– We would like to thank Stora Enso for protecting Borlänge in this deal. We believe and hope that Borlänge residents and many of those who previously worked in the paper mill see new opportunities, says Jan Bohman, chairman of the municipal board.
Expansive, comprehensive and forward-looking
Borlänge’s future looks very bright with new jobs and an already strong business community that is now growing further.
– It is highly probable that more companies, both within and outside the industrial industry, will be attracted here, it is a natural effect of an establishment that is so expansive, extensive and future-oriented, says Per Sjölander, business manager in Borlänge municipality.
Grateful for the will and commitment
Borlänge municipality, together with many other actors, has assisted with knowledge and expertise during the ongoing negotiations, not least in matters concerning, for example, housing, infrastructure, educational opportunities and business contacts.
– An establishment like this gives us the opportunity to work at an even faster pace with housing, roads, railways and education in the region. It is fantastic what support there has been, both nationally, regionally and locally. I am both impressed and grateful for the will and commitment that becomes so clear in a sharp situation, says Åsa Granat, municipal director in Borlänge municipality.
Enjoy the news
The municipality will now continue with the work and planning that needs a little extra attention in such a large establishment.
– We allow ourselves to enjoy the news today, then of course a lot of work awaits us. But I have a hard time imagining any better inspiration than this one, says Åsa Granat, municipal director in Borlänge municipality.