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

African equity fund invests in Kenya's General Plastics

January 28, 2015 4:24 pm ET

An African investment fund specializing in agriculture has invested in Kenyan packaging firm General Plastics Ltd. to provide funds to expand in the...    More

Image

China XD to catch up on Sichuan project

January 28, 2015 2:41 pm ET

Automotive compounder China XD Plastics Co. Ltd. (Nasdaq: CXDC) has been working on its fourth production base in Nanchong, Sichuan province since...    More

Image

China's plastics industry making a shift

January 27, 2015 3:41 pm ET

China's plastic industry is in the midst of a “profound adjustment” from large-scale and high-speed growth to growth focused on quality,...    More

Image

Citadel opens second compounding facility in China, near Shanghai

January 27, 2015 3:22 pm ET

Citadel Plastics Inc., the American manufacturer of thermoplastic and engineered composite compounds, has opened its second facility in China,...    More

Image

Major packaging merger includes plastics operations

January 26, 2015 12:24 pm ET

A merger of packaging companies MeadWestvaco Corp. and Rock-Tenn Inc. will create a new company with nearly $16 billion in annual sales.    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

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

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events