On Thursday, the management in Freyr had a meeting with the employees in Mo i Rana. Then came the heavy news that several of them will lose their jobs. Managing director Tom Jensen tells news that the company will make significant downsizing. – Today I have informed the employees at Mo that the production of battery cells has been paused. – Considerable downscaling The reason, according to Jensen, is the strong competition from China. – There is a significant excess capacity of battery cells from China, which means that the prices of the products have fallen so much that we have to go back to the drawing board, he says to news. According to Jensen, there will be a reduction in the number of employees both at Mo, but also generally in Freyr. Jensen says that the employees were prepared for the message that came on Thursday. – It was a composed, but of course disappointed and sad assembly today. It is not the first time Freyr has had to lay off employees. In November last year, 78 employees had to leave – ten of them in Mo i Rana. CEO Tom Jensen in Freyr. Photo: Freyr Big plans Freyr originally had plans to create 1,500 jobs in Nordland. They were to use Norwegian, clean hydropower to produce batteries. But the company has encountered several reefs in the sea. While the company’s owners and managers have made good money from favorable share sales and bonuses, things are going worse for the company itself. Last year, it was announced that the company had halted the construction of a “giga factory” that was supposed to produce batteries of industrial size. – How many people are employed at Mo i Rana today and what will the number be when you have scaled back? – There is a significant downscaling across the company. But the lion’s share of the downscaling is happening at Mo because most of the company’s activity was linked to battery cell production. Jensen says that the employees sit in meetings to clarify what the organization will look like. – We have not come out with the specific number yet. But there is a significant adjustment in the number of employees across the organisation. Puts production of battery cells on hold What was supposed to be an industrial adventure in Helgeland and the starting point for the government’s major battery investment is thus facing adversity once again. Freyr is still not closing down the factory, even though they are now making major changes, according to Jensen. – Battery cell production has been put on hold until we see a way to produce battery cells, which we believe is profitable in a European and Norwegian context. Will pack batteries In May, the battery company made a full-scale battery cell at the factory in Mo. – This is a significant step forward for our team at Mo i Rana, stated Mike Brose in Freyr in a press release at the time. Now, no more battery cells will be produced for the first time. In the meantime, Freyr will, among other things, work on packing together several batteries into a larger battery that can produce a higher voltage or deliver more current. – We will utilize surplus capacity of battery cells from China into module and package business. Photo: DRONEFOTO The building that was supposed to house the battery factory is listed at a value of NOK 2.5 billion and may end up becoming a parcel station. – We have invested over NOK 4 billion in Mo i Rana, so we are not going to pull out, quite the opposite, says Jensen and adds: – We are going to work extremely hard to develop the battery industry here. But we therefore start in a different part of the value chain than our original track, which was battery cell products. The company has previously received criticism for its lucrative board fees, especially since the company has received significant state aid in Norway. Published 29/08/2024, at 19.53 Updated 29.08.2024, at 19.55
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Battery company Freyr lays off employees in Mo i Rana – news Nordland
