Valmet Automotive expands battery pack production in Salo

With the extension the company says it will increase the production capacity of battery packs and double the number of employees in the next few years. The construction work has already started and will be completed during the summer of 2021, a press release reads. The project will provide the company with new larger facilities for logistics and simultaneously building a completely new production line to increase the plant volumes and the range of products to be manufactured. Adding to the expansion, Valmet Automotive says it will also occupy a footprint of vacant office space at the Salo IoT Campus. The company says that the production volumes of the Salo plant have recently reached record levels. The plant is operated by Valmet Automotive’s EV Systems business line, which already has manufacturing contracts with three customers, and further manufacturing contracts are in the pipeline. The Salo battery plant employs currently about 200 people. With the increased production in the plant, the number of employees is expected to increase to more than 400 during 2021 and 2022. “Battery systems are the most significant growth area for Valmet Automotive, and we intend to become a key player both as a battery contract manufacturer and as a Tier 1 system supplier. The Salo battery plant plays an important role in our growth plans,” says Olaf Bongwald, CEO, Valmet Automotive, in the press release. Valmet Automotive estimates that its sales from battery systems and EV solutions will reach or even exceed the sales of vehicle manufacturing in the coming years.