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 Medical, Injection Molding, China, Telecommunications

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

VDMA clarifies Tokyo statement about China

August 21, 2014 2:57 pm ET

Some remarks that VDMA President Reinhold Festge made at a recent press conference in Tokyo turned into sensational headlines in China.    More

Image

Bayer, SCAC partner on water reuse project

August 21, 2014 12:48 pm ET

Bayer MaterialScience (BMS) and Shanghai Chlor-Alkali Chemical Co. Ltd. (SCAC) have entered into a preliminary agreement for the reuse of waste water ...    More

Image

German injection molders Metz-Werke and Inotech to collaborate

August 21, 2014 11:47 am ET

German injection molding companies Metz-Werke GmbH & Co. KG and Inotech Kunststofftechnik GmbH have announced that they have joined forces to bring...    More

Image

Enor expanding in S.C., moving toy production to U.S. from China

August 20, 2014 4:01 pm ET

Wal-Mart Stores Inc. has convinced toy producer Enor Corp. to expand U.S. production at the expense of sourcing from China.    More

Image

Venture Plastics adds 720-ton press

August 20, 2014 2:03 pm ET

Venture Plastics Inc. expanded its El Paso, Texas, custom molding facility in early summer to grow sales.    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

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

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