How is Skellefteå municipality affected by Northvolt's cutbacks?

Kristina Sundin Jonsson, head of Skellefteå Municipality, answers a few questions in connection with Northvolt's announcement of cutbacks, which came on September 23.

What is Skellefteå municipality doing now in response to Northvolt's announcement?

'1,000 people have now been given notice of termination of employment in Skellefteå. We will now do our best to ensure that this workforce is utilised in the region. At the same time, it is important to emphasise that around 2,800 people will remain at the factory in Skellefteå. The company will still be one of our largest employers. Both private and public employers in the region have a great need for labour and we want as many as possible to stay in the region. As a first step, we will hold meetings with the business community, the County Council of Västerbotten, the County Administrative Board, the Swedish Public Employment Service and the Swedish Agency for Economic and Regional Growth to discuss how those who lose their jobs can quickly find new employment. At the same time, we are raising the level of preparedness for our own adult education and for universities and other education providers in the region to be able to meet the training needs that may arise. What we are doing right now is forming a steering group which consists of myself, the county councillor, the regional development director and representatives from the Swedish Public Employment Service and the Swedish Agency for Economic and Regional Growth.'

How does Northvolt's announcement affect the municipality?

'Of course, this is bad news for Skellefteå, and especially for those who risk losing their jobs. Northvolt has played a major role in the municipality's development in recent years, but it is important to remember that Skellefteå's industrial boost and the green transition is much bigger than one company. There are many examples of this, including Boliden's investment of SEK 10 billion over the next three years. Then it is important to say that Northvolt will have 2,800 employees in the factory in Skellefteå after the cuts and will still be one of Skellefteå's largest employers. We have important assets that will be in demand to meet a sustainable future. Renewable energy, great industrial expertise and strong universities mean that we are at the forefront of innovation and technological development. Last but not least, the municipality of Skellefteå is a good place to live, as evidenced by the large influx of new residents choosing to live here.'

How much money has Skellefteå Municipality invested in Northvolt?

'The Municipality of Skellefteå invests in community development, not in individual companies. The municipality has invested SEK 100 million in completing the industrial area where Northvolt's factory is located. The area was designated as an industrial area before Northvolt's announcement, and the investments would have been made sooner or later anyway. The municipal energy company Skellefteå Kraft was one of the players that became an early partner in Northvolt and invested SEK 100 million.'

Is it true that the municipality has invested SEK 42 billion in connection with the Northvolt factory?

'No, this is wrong and a misunderstanding. The figure of SEK 42 billion comes from the Municipality Group's future investment plan, which covers the entire period 2024-2034. The group includes, for example, the municipally owned energy company Skellefteå Kraft and the housing company Skebo. Of the SEK 42 billion, approximately SEK 31 billion is planned investment by the municipal companies, the majority of which relates to investment in Skellefteå Kraft. These investments are always assessed on a commercial basis before they are started. The Municipality's own investments for the next ten years amount to approximately SEK 11 billion, of which almost half is for activities financed by charges, such as water and sewerage charges, waste disposal charges or the development of industrial sites. The rest is investment in schools, cultural and leisure facilities, roads and parks. Most of these investments can be cancelled if needs turn out to be different from what was forecast. Over the past three years, the municipality has financed 100 per cent of its investments with its own money. Over the next ten years, the municipality plans to maintain a high self-financing rate of around 70 per cent.'

Is the new port being built to meet Northvolt's needs?

'The new port is an investment to meet new transport needs in the region and has been planned for at least ten years, long before the establishment of Northvolt. Today's port cannot cope with the number of transports that will take place in the whole of northern Sweden in the future. The new port will create competitive advantages for the entire local and regional economy and contribute to sustainable industrial development. After the investment, the port will still be considerably smaller than, for example, the port in Piteå.'

How are Skellefteå Municipality's finances, is the municipality in debt?

'Skellefteå Municipality has a well-managed and solid economy. In fact, the municipality is one of the financially strongest municipalities in the country if you look at the equity ratio, i.e. how much of the assets are financed by own money. The municipality has no debt in its tax-funded activities, such as schools and care services. The municipal companies Skebo and Skellefteå Kraft have loans for investments. These investments are always evaluated on a commercial basis. The Municipality has some debt in the fee-funded part of the Municipality's operations, such as water, sewerage and waste.'

What impact has Northvolt had on Skellefteå?

'Northvolt has played a major role in Skellefteå's societal transformation from a declining population and declining confidence to booming growth and an expanding green industry. Already in 2015, we set challenging goals and adopted an ambitious development strategy. So Skellefteå's development and green transition is much bigger than Northvolt. And even if all those who are now being made redundant are eventually laid off, the company will still be one of the largest employers in the area.'

In the light of what is happening with Northvolt, should the municipality have acted differently when the company was established in Skellefteå?

'Ten years ago, we decided to invest in the growth of the municipality and in attracting more companies. This is work that everyone in the municipality can be proud of and that we have done together. It has also yielded very good results and led to many companies, not just Northvolt, choosing to invest in Skellefteå. This work has been incredibly important and we will continue to do it, no matter how Northvolt develops as a company.'