(Bloomberg) -- The ripple effects from the crisis at Swedish battery maker Northvolt AB continue to spread after a recycling contractor announced it was laying off 60 workers.
The employees affected work at Stena Recycling AB’s operations in Skelleftea, the same town in northern Sweden where Northvolt’s flagship Ett factory is located, according to a statement on Friday.
“We need to take this precaution,” Stena Recycling’s Tobias Narvinger said. He added the company will also review how “the changes that our biggest customer in Skelleftea informed us about this week will affect us.” The recycling firm employs more than 3,500, according to its website.
The Northvolt unit managing the expansion of its main battery-cell factory in the town filed for bankruptcy last week, saddling suppliers with about 606 million Swedish kronor ($58 million) in claims. The move followed Northvolt’s decision in September to shed 1,600 jobs in Sweden — including 1,000 in Skelleftea — in response to a deepening cash crunch.
Looming financial obligations for Northvolt include a tax bill due Monday. The company has told Bloomberg it intends to pay its taxes, which are reported to total 287 million kronor.
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