Scania, a major Swedish commercial vehicle manufacturer and a unit of Volkswagen, has announced that it will acquire bankrupt Northvolt’s Industrial Division, which manufactures battery systems for off-highway and heavy industrial vehicles.

The acquisition will include production capabilities, a research and development center and approximately 260 employees, with operations in two locations, namely a leased production facility in Gdańsk, Poland, and an R&D center in Tomteboda, Stockholm, Sweden.

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

The former Northvolt Industrial Division will be a partner to Scania Power Solutions and operate as a stand-alone venture within Scania Ventures and New Business, Scania said. The company said that this arrangement will align the new acquisition with Scania’s strategy “to develop complementary and transformational businesses that strengthen Scania’s long-term competitiveness.”

The purchase price was not disclosed, and the deal will ensure the continuation of operations at the former Northvolt unit.

Scania was formed in 1911 through the merger of Södertälje-based Vabis and Malmö-based Maskinfabriks-aktiebolaget Scania. In 1969, it merged with Saab to form Saab-Scania, an arrangement that ended in 1995 when the company’s truck and bus business was spun off under the name Scania. Volvo tried but failed to acquire Scania in 1999 ,as did German truckmaker MAN in 2006. Volkswagen, which had begun to acquire smaller stakes in the company in 2000, became a majority shareholder in 2008, at which point Scania became Volkswagen Group’s ninth marque. By 2015, Volkswagen held 100% of Scania shares and Scania became a brand of Volkswagen Group’s Traton unit—the former Volkswagen Truck & Bus division—along with MAN, International, IC Bus, Neoplan and Volkswagen Truck & Bus.

Source: Scania