Nolato builds Chinese medical molding plant

Rebecca Kanthor
PLASTICS NEWS CHINA

Published: September 30, 2013 1:34 pm ET
Updated: September 30, 2013 1:43 pm ET

Image By: Rebecca Kanthor, Plastics News Nolato Strategic Account Manager Johan Christiansson

Related to this story

Topics China, Medical, Telecommunications, Injection Molding

SHANGHAI — Swedish injection molder Nolato AB is building a dedicated medical manufacturing plant in China with capacity for 30 injection machines, as it sees its customers in the medical and pharmaceutical industries expanding their operations in Asia.

The new facility, located near the company's existing manufacturing plant in Beijing, will begin operation in the first quarter of next year, said Strategic Account Manager Johan Christiansson, in an interview at the Medtec China trade show on Sept. 25 in Shanghai.

The Torekov, Sweden-based company said the new 23,700 square foot factory will have 8,600 square feet of class 8 clean room space.

"China is the fastest growing market for pharmaceuticals and medical devices, which means that more and more of our customers are discussing expanded production in China for the Asian market," said Christer Wahlquist, president of the Nolato Medical business unit, in a statement.

The new facility will let the company separate its medical and telecom related manufacturing at its existing Beijing plant, which opened in 1999, Christiansson said. The old Beijing facility will focus entirely on telecom related work, as the company tries to expand its medical-related business, he said.

"The focus going forward is … more and more on medical," he said. "Telecom goes up and down very fast. Medical is more stable."

He said it made sense to separate the two businesses.

"If you combine medical with something else there can be challenges," he said. "So to make sure we have the best conditions to manage this, we decided to have a dedicated medical site."

The company also has a telecom manufacturing facility in Shenzhen.

Christiansson said the plant will not run at full capacity from the start: "We're building a little more for the future as well."

Nolato said its medical business has been active in China since 2008. Globally, the company said has about 25,000 square meters of clean room capacity for medical manufacturing, in a range of classes, at nine facilities in Asia, Europe and North America.

Nolato's medical business worldwide has nearly 1,000 employees in Sweden, Great Britain, Hungary, the United States and China.

The publicly traded company reported in July that its second quarter medical business worldwide rose 3 percent $50.2 million (308 million Chinese yuan), while overall sales rose 11 percent, to $180.9 million (1.1 billion yuan), with operating income up 37 percent to $17.2 million (105.5 million yuan).

That sales increase was led by its telecom business, where sales in the quarter rose 28 percent, to $84.1 million (516.1 million yuan).


Comments

Nolato builds Chinese medical molding plant

Rebecca Kanthor
PLASTICS NEWS CHINA

Published: September 30, 2013 1:34 pm ET
Updated: September 30, 2013 1:43 pm ET

Post Your Comments


Back to story


More stories

Image

One51 adding injection molder Straight to its bin molding portfolio

July 29, 2014 10:12 am ET

Dublin-based One51 plc has had its purchase of British trash bin maker Straight plc cleared by the United Kingdom's Competition and Markets Authority.    More

Image

Two medical device makers add specialty products through acquisitions

July 28, 2014 3:02 pm ET

The medical merger mania continues this summer as two more medical device manufacturers are swallowed up by bigger competitors.    More

Image

Columbine Plastics moving to new Colorado site

July 25, 2014 11:38 am ET

Custom injection molder Columbine Plastics Corp. plans to move from Boulder, Colo., to the Colorado Technical Center in Louisville, Colo.    More

Image

Metals and plastics company NN to buy Autocam in $300 million deal

July 25, 2014 10:07 am ET

A Tennessee metals and plastics company said it has agreed to acquire auto parts supplier Autocam Corp. in a deal valued at $300 million.    More

Image

Chinese auto suppliers growing in US

July 24, 2014 4:17 pm ET

Two China-based automotive suppliers are expanding in the U.S., according to information released by the Michigan Economic Development Corp.    More

Market Reports

Plastics Recyclers Data Report & Directory

This exclusive MS Excel database contains all the companies from Plastics News' ranking of top North American Recyclers and Brokers by reprocessed volume and also includes a directory with materials processes, services offered and company contact information. Data is based on primary research by PN editorial staff.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events