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Verkan AB picks Kristinehamn for new propellant factory

Economy & businessEconomy
Verkan AB picks Kristinehamn for new propellant factory
Key Points
  • Verkan AB selects Kristinehamn over Borlänge for propellant factory
  • Factory could create up to 450 jobs at Björneborg site
  • Kristinehamn site offers better road access and process water

The company cited technical advantages at the Kristinehamn site, including better road access and process water availability, according to multiple reports. The factory is planned for Björneborg in Kristinehamn municipality. The decision marks a significant shift from earlier plans that had considered Borlänge as a potential location.

Verkan AB will now apply for an environmental permit under the Environmental Code from the Land and Environment Court. The timeline for the permit process and construction has not been disclosed. Borlänge municipality had started work on a new detailed plan for the Svartå-Matsknutsgårdarna area, which will now be terminated.

The factory would have brought increased transport and handling of hazardous substances to Borlänge. Jörgen Olsson, Municipal Director of Borlänge Municipality, expressed that this is an important investment for Sweden and wished Verkan all the best with their continued establishment process. Lars Nilsson, Chairman of the Municipal Council in Kristinehamn, described the investment as exciting and expressed gladness that Verkan chose to proceed with Kristinehamn, noting a close and constructive dialogue from day one and looking forward to continuing the collaboration.

The specific types of propellant to be produced and the total investment cost remain unknown. The choice of Kristinehamn over Borlänge was influenced by the site's superior infrastructure, which is critical for the large-scale production of propellants. The availability of process water and efficient road connections are expected to streamline operations and logistics.

The environmental permit application will be a key step, as the factory must meet stringent safety and environmental standards. The Land and Environment Court will review the application to ensure compliance with the Environmental Code. The termination of the detailed plan in Borlänge reflects the municipality's shift in focus, as the propellant factory was a major component of their industrial development strategy.

The potential risks associated with hazardous materials had raised concerns among local officials and residents. The factory's establishment in Kristinehamn is seen as a boost to the local economy, with the promise of hundreds of jobs. The collaboration between Verkan AB and Kristinehamn municipality has been described as positive and forward-looking.

Both parties are committed to ensuring the project's success through ongoing dialogue and planning.

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