2021-03-25 16:04Press release

Senior Technology Material invests SEK 2.5 billion in the Stockholm region

Photo: Micke Sandström, visiteskilstuna.sePhoto: Micke Sandström, visiteskilstuna.se

Shenzhen Senior Technology Material (Senior) will invest SEK 2.5 billion (MEUR 250) to establish a production facility in Eskilstuna, adding unique expertise to Sweden’s battery industry. The investment is expected to create local conditions for 500-600 new direct jobs.

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, Chairman of the Municipal Board, Eskilstuna Municipality.

The facility will be one of Europe’s largest factories of its kind and will supply Northvolt with separator film for lithium-ion batteries.

"Senior Technology Material’s investment further strengthens the Stockholm region’s ambition to become a global center of excellence for electrification. Northvolt’s establishment marked the beginning of a strong cluster of subcontractors within electrification forming in the region. This trend, in combination with new initiatives like Fordonsdalen Stockholm, that aims to strengthen the regional automotive industry's competitiveness in the transition to a sustainable transport system, contribute to the Stockholm region increasingly becoming international companies’ gateway to Europe," says Hans Aspgren, CEO of Invest Stockholm.

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 the Stockholm region 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.

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.

For more comments on the investement, read Business Sweden's press release.

For updated investment cases and more information about business opportunities within the electrification market in the Stockholm region, please contact:     
Jenny Berthling, Head of ICT and Automation, Invest Stockholm, +46 (0)70 472 8008, jenny.berthling@stockholm.se    

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.   

 


About Invest Stockholm

Invest Stockholm is the official investment promotion agency of Stockholm. We work with the marketing and development of the Stockholm region as a business destination under the brand Stockholm – The Capital of Scandinavia. Invest Stockholm is a subsidiary of Stockholm Business Region, owned by the city of Stockholm.

Contacts

Hans Aspgren
Acting CEO, Invest Stockholm
Hans Aspgren