CEO Magnus Hall in Vattenfall micht kick 1000 persons owing to low profitability ( Photo: Vattenfall)

CEO Magnus Hall in Vattenfall micht kick 1000 persons owing to low profitability ( Photo: Vattenfall)

Vattenfall has decided to change the direction of the planned operational lifetimes for Ringhals 1 and 2. The reason is declining profitability and increased costs. This means that Sweden is closing down to nyclear reactors near the city of Halmstad in southern Sweden.

The new direction means that Ringhals 1 and 2 may be closed down between the years 2018 and 2020 instead of, as previously announced, around 2025. The closure decision will be made by the Ringhals Board of Directors and requires unanimity between the owners, i.e. Vattenfall and E.ON.

Will last sixty years

The stately oned energy company Vattenfall is because of this fored to quit one thousand employees.Theformer Norwegian CEO in Vattenfall was forced to leave the company. ØysteinLøsseth is today a Board member in Statoil.

-Unfortunately, we see market conditions with continued low electricity prices in the coming years. At the same time, we are facing increasing production costs, writes Torbjörn Wahlborg, Head of Business Area Generation, Vattenfall in a press release. As to Vattenfall’s five other nuclear reactors Ringhals 3 and 4, and Forsmark 1, 2 and 3, the existing plans for at least 60 years of operational lifetime, until the beginning of 2040s, remains.

-Vattenfall’s decision is business driven. It is of course regrettable to close down well-functioning production units but sometimes this is inevitable, continues Torbjörn Wahlborg.

Germans are informed

German E.ON , which is minority owner in Ringhals 1 and 2 ,has been informed about Vattenfall’s decision to change the direction. The book value of Ringhals 1 and 2 in the Vattenfll Group consolidated balance sheet amounts to SEK 15.1 billion as of 31 March 2015, of which Vattenfall’s share is 70.4%. The combined financial impact is being investigated.Vattenfall discloses this information pursuant to the Swedish Securities Market Act. The Norwegian Banks Investment Management have invested 5,4 billion Norwegian kroner in german E.ON, owning 2,09 per cent in the company. Statkraft was previosly owner of a 4 per ent ctake in E.ON. This stake is sold. The stately owned Statkraft has 10 power plants in Germany. Four of them are based on gas.

Viseadministrerende  direktør Ingrid Bonde er finansdirektør i kriserammede Vattenfall(Foto:Vattenfall)

Viseadministrerende direktør Ingrid Bonde er finansdirektør i kriserammede Vattenfall(Foto:Vattenfall)

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