Creative & Innovative System (CIS), a Korean manufacturer of facilities for lithium batteries and displays, is adapting to contract changes with Northvolt AB following the bankruptcy filing of its affiliate, Northvolt ETT Expansion AB. The company has received 30.16 billion won (US$22.3 million) out of 111.8 billion won (US$82.7 million) in total contract value from Northvolt AB.
Despite the setback, CIS remains confident in its financial stability. A company representative stated that the substantial payments already received ensure stable business operations. CIS is working with legal firms to minimize potential damages and achieve favorable outcomes.
The manufacturer has halted production related to the Northvolt contract and is reallocating equipment and parts to other clients. This strategic move aims to mitigate financial impact and maintain business continuity.
CIS’s order backlog, excluding the Northvolt contract, stands at approximately 600 billion won (US$444 million) from domestic and international clients. This substantial backlog indicates a strong future revenue stream for the company.
As CIS navigates these contract adjustments, its proactive approach and diverse client base suggest resilience in the face of changing market dynamics.
CIS Adjusts to Northvolt Contract Changes, Maintains Financial Stability
The Korean manufacturer halts production for Northvolt, redirects resources to other clients
