Plans for a Chinese PTL factory in Torsboda, Sweden, have been halted due to unmet security requirements set by the Swedish Inspectorate of Strategic Products (ISP).

PTL, which aimed to invest 13 billion SEK and create 1,900 jobs, claims the conditions are unreasonable, citing tight deadlines and the demand for a Swedish partner to take majority ownership.

Local leaders, including Timrå's municipal head Stefan Dalin, expressed deep disappointment, calling it a loss for the region.

The project faced criticism over environmental concerns and PTL's ties to a controversial Chinese province.

PTL is considering appealing the decision to the Swedish government, which could be its last chance to proceed.