Verkan AB has decided not to build the planned gunpowder factory in Borlänge and will instead proceed with the project in Kristinehamn, Värmland.
Verkan AB has selected Kristinehamn due to superior technical conditions, particularly regarding road connections and access to process water. The company is now advancing the environmental permit process at the new site.
Borlänge municipality maintained good dialogue with the firm and expressed understanding of the decision. "This is an important investment for Sweden, and we wish Verkan all the best with their continued establishment process," said municipal director Jörgen Olsson.
The project could have created 450 jobs in Borlänge but would also have brought increased transport and handling of hazardous materials. The municipality is therefore ending work on the detailed plan for the Svartå – Matsknutsgårdarna area.