Dale Fabriker goes bankrupt - blames high electricity prices

Cryptominer CryptoVault, which has been operating on campus, will move its operations to northern Norway due to high electricity costs.

In 1879 the factory complex, which was re-established, had to hang a hook on the door because electricity prices were too high for both the property company and their tenants to handle. Photo: Tor Høvik (archive)

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Dale Fabriker today is mainly a property company. The earlier textile manufacturing in the complex has been stopped there.

– Solicitation of tender for Dale Fabricator is a very tough and difficult decision for the Board to take. However, given the company’s growing financial position, the board had no choice, writes chairman Christian Bjelland in an email to E24.

Bjelland explains that high electricity prices are behind this.

– Historically high electricity prices in recent months have caused the data center, which ran an extensive business on Dale Fabriker’s premises, to terminate the lease, stop at Dale and move the business to northern Norway, the chairman adds.

Cryptominer is running on Kryptovault premises. All arrows pointed the wrong way for Kryptovault on E24 Wednesday This year, and the data center company recently had to restructure half a billion in debt.

– It’s been a terrible year, general manager Kjetil Hove Pettersen told E24 at Kryptovault.

The salmon stock decline has all the possible signs of being exaggerated

Too much to carry

Dale Fabrikker is located in Dale in Vaksdal municipality between Voss and Bergen. Electricity prices in this price area have skyrocketed over the past year, as have the southern Norwegian price areas.

– Rising electricity prices, a sharp decline in Dale Fabricator’s revenue as a result of data center closures, non-payment of significant receivables held by Dale Fabricator for power supplies, and a new investment plan for an on-site transformer plant at Dale were too much for the company to bear, writes Bjelland.

In 2021, the company had a turnover of NOK 68 million and a profit of more than NOK 5.3 million, according to figures from the Brønnøysund registers. The company says more than 60 million in revenue came from electricity resale and 7.3 million from rental income.

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Dale Fabriker today is mainly a property company. The earlier textile manufacturing in the complex has been stopped there.

The factory was established in 1879 as a significant textile manufacturer. At most, 1,100 employees worked in the factory. Today, two employees work in the property company.

As of September 2022, the company says on its website that it has the following tenants: