by Xuefei Chen Axelsson
Source Business Sweden website
Stockholm, June 22(ChinaEuropeDialogue) — Covid 19 didn’t stop the steps of the capital.
Shenzhen Senior Technology Material (Senior) will invest SEK 2.5 billion (MEUR 250) until 2025 to establish a production facility at Svista industrial estate in Eskilstuna, Sweden, creating local conditions for 500-600 new direct jobs. The facility will be one of Europe’s largest factories of its kind and will supply Northvolt with separator film for lithium-ion batteries.
This was the news published on March 21, 2021 on Business Sweden website.
Senior Technology Material’s establishment in Eskilstuna is the company’s first investment in a production line outside of China. According to the management, the new facility is set to become European headquarters when the construction phase is completed in 2025.
“Eskilstuna is now positioning itself as a key knowledge hub in the electrification of transport, not only in Sweden but also in a European context. Once again, we have demonstrated that Eskilstuna is an attractive location for new business as well as expanding companies. I welcome the formation of a cluster of companies here in the field of electrification,” says Jimmy Jansson (S), Chairman of the Municipal Board, Eskilstuna Municipality.
Ibrahim Baylan, Sweden’s Minister for Business, Industry and Innovation, comments:
“Electrification and access to energy storage play a decisive role in the transformation of industry and society to combat climate change, and in making Sweden one of the world’s first fossil-free welfare nations. This is an important investment, not least for Eskilstuna, to ensure that batteries can be manufactured sustainably in Sweden.”
The site selection process for Senior’s production facility has been exhaustive. Eskilstuna was chosen for its strategic location as a logistics hub as well as the possibility of transporting raw materials sustainably via rail through Eskilstuna Intermodal Terminal. Another key reason was the availability of technology skills in the region.
In addition, the higher share of carbon-free energy available in Sweden and Eskilstuna compared to other countries was a key advantage in the decision-making process, as this unlocks the possibility for Senior to achieve a low carbon footprint in manufacturing.
Xufeng Chen, Chairman of the Board, Senior Technology Material, says:
“Europe will be the world’s most important market for the electrification of transport and energy storage solutions in the future. In addition, the EU has set a target of completely replacing conventional cars with electric vehicles over the next 15 years. The market opportunities are vast and there is great potential for further development. Senior’s establishment of a production facility in Sweden is a key step in our global strategy.”
The production facility in Eskilstuna will supply Northvolt’s gigafactory in Skellefteå with separators. Both raw materials and end products will be transported to and from Eskilstuna by rail via Eskilstuna Intermodal Terminal.
“We believe that the strong cooperation between Northvolt and Senior will establish Sweden as one of Europe’s most important production hubs for battery materials and components for the automotive and energy storage markets. This, in turn, will have a profound impact and contribute to the development of Europe’s new energy industry,” adds Xufeng Chen, Chairman of the Board, Senior Technology Material.
Senior Technology Material’s establishment in Sweden and Eskilstuna will involve three phases. In the first phase, the company will rent a 13,900 sqm facility at Svista industrial estate from the real estate company Nyfosa. A letter of intent has been signed between Eskilstuna Municipality, Nyfosa and Senior to develop a 120,000 sqm plot of land adjoining the existing facility in Svista, with a view to expand operations in the second and third phases.
Currently, the plan is to establish a 70,000 sqm facility by 2025 which is expected to create 500-600 direct jobs and a large number of indirect jobs.
“We are very pleased to welcome Senior to Sweden’s expanding battery industry. By tapping into Sweden’s low carbon energy mix and excellent conditions for modern manufacturing, Senior’s establishment and strong technical expertise will contribute to the sustainable supply of battery components for the European market,” says Andreas Scheibenpflug, Head of Business Ecosystem – Smart Industry & New Materials, Business Sweden.
Johan Holmqvist, Chairman, Eskilstuna Logistik och Etablering AB, says:
“It is very gratifying that a listed company, in a rapidly expanding high-tech industry, has decided to locate its European headquarters and production site in Eskilstuna. I am convinced that Senior’s establishment will have a positive impact on the entire business community in Eskilstuna,” says Johan Holmqvist, Chairman, Eskilstuna Logistik och Etablering AB.
Jimmy Jansson (S), Chairman of the Municipal Board, Eskilstuna Municipality, concludes:
“Senior’s investment will strengthen local conditions for future industrial establishments, proving that our strategy of boosting Eskilstuna’s attractiveness as an industrial hub is yielding positive results. Our municipality is known for advanced industrial competence and skills and Senior’s unique expertise is warmly welcome. We are making this journey together.”
For more information, please contact:
Jimmy Jansson (S), Chairman of the Municipal Board, Eskilstuna Municipality, +46 (0)70 086 65 02, email@example.com
David Hofmann, CEO, Eskilstuna Logistik och Etablering AB, +46 (0)73 851 13 031, firstname.lastname@example.org
Kalle Liu, Chief Operating Officer, Senior Material (Europe) AB, +46 (0)76 301 10 01, email@example.com
Johan Holmqvist, Chairman, Eskilstuna Logistik och Etablering AB, +46 (0)70 324 57 37, firstname.lastname@example.org
About the company:
Shenzhen Senior Technology Material Co., is a leading global supplier of separators used in the manufacturing of lithium-ion batteries. The company is headquartered in the tech hub Shenzhen and supplies the world’s largest battery manufacturers with patented separator solutions.
The company is listed on the Shenzhen stock exchange and plans to expand in China and internationally to meet growing demand for battery components. The investment in Sweden and Eskilstuna represents the first establishment of a production facility overseas.
“Senior’s establishment in Eskilstuna is an important and welcome addition to the ecosystem for battery production that is emerging in Sweden and Europe. The company’s decision to locate production in Mälardalen, known for its availability of advanced technical expertise and carbon-free energy, will support growth at the local level and Europe’s energy transition, as well as Northvolt’s operations – as we continue our work to produce the world’s greenest lithium-ion battery,” says Jesper Wigardt, Vice President Communication & Public Affairs, Northvolt.
“I am very pleased to welcome Senior to Eskilstuna and Svista industrial estate and proud of the fact that the company has decided to establish a new production facility here. This significant investment will pave the way for many important employment opportunities,” says David Hofmann, CEO, Eskilstuna Logistik och Etablering AB.
“We are happy to have found a good solution here in Eskilstuna that meets Senior’s production needs, the result of intensive efforts with professional support from Business Sweden and Invest Stockholm. This important industrial establishment confirms Eskilstuna’s key position as an industry and logistics hub in Sweden, which is very encouraging,” says Manuel Brändeborn, Marketing Manager, Eskilstuna Logistik och Etablering AB.