CLEAN DEAL – SCANIA TO ACQUIRE NORTHVOLT SYSTEMS AS IT NAVIGATES ITS PATTH TO ZERO EMISSION

Scania has announced it has made a another step on the path to zero emission with the revelation it has acquired  the Industrial Division of Northvolt Systems, including its production capabilities, a research and development centre, with a team of approximately 260 employees.

Scania says the operations are based in two locations, a leased production facility at Gdańsk in Poland, and an R&D centre at Stockholm in Sweden.

The company explained that Northvolt Systems Industrial Division develops and manufactures battery systems for heavy industry and off-highway market segments, offering a portfolio of battery modules and systems used in material handling, construction equipment, and mining.

It said that Northvolt will be a partner to Scania’s business unit Power Solutions, and that this will add to Scania’s offering as part of a diversified product portfolio.

Scania Power Solutions claims more than  a century of powertrain innovation and says it,has built a strong reputation for delivering reliable and efficient engines that meet the toughest demands in the industrial, marine, and power generation segments. \

Scania said this acquisition will strengthen its electrification offering for off-road applications.

“Northvolt Systems Industrial Division brings valuable expertise in battery technology and assembly. Their capabilities strengthen our modular approach and support the development of complete electrified solutions for off-road applications. I’m pleased to welcome the team to Scania,” said Scania head of Power Solutions, Sara Hermansson,

The  company said Northvolt  will be a partner to Scania Power Solutions and operate as a stand-alone venture within its  Ventures and New Business operation, which it says will align with its strategy to develop complementary and transformational businesses that strengthen Scania’s long-term competitiveness.

Head of of energy and infrastructure at.Scania’s Ventures and New Business, Jonas Hernlund, said that by combining Northvolt Systems Industrial Division’s battery expertise with Scania’s deep industry knowledge, the copmany is not only driving innovation but also strengthening the ability to serve its customers on their transition journeys.

“This acquisition demonstrates how Scania Ventures and New Business leverage our capabilities in opportunity identification, M&A, and growth-stage company management to enable our core business and enhance our position as a transformation partner for our customers — all in support of a more sustainable transport system,” said Hernlund.

As part of the acquisition process, Scania has reached an agreement with the trustee to acquire Northvolt Systems Industrial Division. The parties have agreed not to disclose the purchase price,” he added.

Northvolt Systems Industrial vice president, Elin Åkerström, said that since 2017, the company has developed advanced battery systems for machines operating in demanding environments such as construction, mining, and material handling.

“Our flagship solution, Voltpack Core, reflects our ability to meet real-world industrial challenges. Joining Scania marks the next chapter in our journey. This acquisition brings together two strong legacies in electrification and powertrain innovation. I am confident that, together, we will strengthen our capabilities and deliver even greater value to our customers,” sayid Åkerström.

Scania and the trustee have agreed on a deal that ensures continuation of operations. Following the acquisition, Northvolt Systems Industrial’s operations will continue with business as usual.