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<a href="/v5/viewer/files/Default_s.aspx?gKey=z5x01xt3&amp;gInitPage=1">Nolato Magazine 1 ➤ Nolato Magazine Number ninetee</a> n Steady growth for medical Nolato Medical is continuing to show steady growth. Now it is gathering its strength even further, in order to create the optimal conditions for running major customer projects. ➤ Read more on page 4. A recipe for success Nolato Plastteknik has found itself at the heart of industrial Sweden’s financial crisis, but has grown thanks to early action, motivated staff and a fighting spirit. ➤ Read more on page 6. Efficient drill protection Atlas Copco Secoroc’s rock drills are up to eleven metres long, weighing up to 150 kg. This places tough demands when it comes to protecting them during transport. ➤ Read more on page 8. Design to make things easier Nolato Medical strengthens Good, carefully thought-out design can make things easier. This was the starting point for cooperation between Nolato Cerbo and Chalmers University of Technology. and coordinates its resources Building a powerful organisation for major projects ➤ Read more on page 10. Operator Marie Ericsson in the new Kristianstad clean room, where Nolato Medical will create new resources for advanced medical technology production. <a href="/v5/viewer/files/Default_s.aspx?gKey=z5x01xt3&amp;gInitPage=2">Nolato Magazine Sida 2 Nolato outsources its IT op</a> erations The Swedish company IT Gården has beaten off tough competition to win the contract to run Nolato’s central IT operations for the next three years. The aim of outsourcing our IT functions is to ensure more secure, more flexible IT support. In addition to the actual systems oper- ations, the commission includes monitoring the communications network that links Nolato’s manufacturing units around the world, as well as providing protection against spam and unauthorised access. “In addition to their expertise and their modern technology platform, we have entrusted IT Gården with this role because of their employees’ personal commitment and genuine interest in creating an optimal solution for us,” says Nolato’s CFO, Per-Ola Holmström. “Instead of being just one among many with a large supplier, we will be one of the biggest individual customers of a watchful, smaller company with which we can have a degree of influence, and alongside which we can develop and grow.” Managing Director Anders Willman, operator Mikael Nilsson and Marketing Manager Jimmy Wallin received the award from Martti Hakulinen, CEO of SKF Mekan. Nolato Polymer named Supplier of the Year by SKF Mekan “We also value proactive suppliers who At SKF Mekan’s Supplier Day event, Nolato Polymer was named Supplier of the Year. “The eligibility criteria for this award included delivery reliability above 97% and zero complaints during the year,” explains Ulrika Hallgren, Purchasing Manager at SKF Mekan. “The supplier in question should also demonstrate excellent communication, providing fast, accurate answers, as well as quickly dealing with and resolving any problems. keep suggesting ways of making improvements. “Overall, when evaluating all our suppli- ers, Nolato Polymer came out best. And the fact that they’re a pleasure to work with also helped!” Nolato Polymer manufactures storage seals for SKF Mekan using a fully-automated process, which includes visual inspection of every individual product to ensure quality. Fredrik Arp new Chairman of the Board Fredrik Arp was elected Chairman of the Board of Nolato at the Annual Meeting, replacing Carl-Gustaf Sondén who declined to stand for re-election. Mr Arp holds a Bachelor of Science in Economics and is an Honorary Doctor of Economics at Lund University. He is also the Chairman of the Board of Hilding Anders AB and Senior Advisor – Nordic Region & Industrials for Candover. He has previously served as President and CEO of companies such as Volvo Car Corporation, Trelleborg AB and PLM AB. 2 Árpád Rozsics and Istvan Olah inspect a suction hose for Astra Tech. Nolato Hungary is Astra Tech’s Supplier of the Year Astra Tech has named Nolato Hungary its Supplier of the Year from among its main suppliers. Nolato Hungary was awarded this recog- nition due to its strong performance in terms of both quality and delivery accuracy, combined with its effective continuous improvement work. <a href="/v5/viewer/files/Default_s.aspx?gKey=z5x01xt3&amp;gInitPage=3">Nolato Magazine Sida 3 Nolato nine-month report St</a> rong growth for Nolato Telecom In today’s nine-month interim report, Nolato has reported sales for the third quarter of SEK 653 million, representing a 6% drop compared with the same period last year, but a 17% increase compared with the second quarter of this year. Operating income (EBITA) was SEK 48 million, compared with SEK 64 million for the third quarter of 2008, while the EBITA margin was 7.4% (9.2%). “Compared with the second quarter of this year, we have seen a general improvement,” explains Hans Porat, President and CEO of Nolato. “Nolato Telecom in particular has experienced strong growth, with an increase in sales of almost 70%. This is in line with previously-announced information, with new product start-ups running as planned. “Nolato Telecom’s strong growth has led to a greater need for working capital. We have also invested actively in both Nolato Medical and Nolato Telecom, and this has had an impact on cash flow, which stood at SEK – 31 million (78).” Compared with the strong third quarter of 2008, Nolato Telecom’s sales fell 3% to SEK 309 million (318). Operating income (EBITA) was SEK 24 million (35). Nolato Medical’s sales rose by 2% to SEK 159 million (156). Oper- ating income (EBITA) was unchanged compared with the same period last year, at SEK 20 million. “During the quarter, Nolato Medical’s volumes were affected by greater summer holiday effects than is normally the case,” says Hans Porat. “The business area’s focus on stronger project management and technical resources is continuing according to plan.” Nolato Industrial’s sales totalled SEK 185 million (219), with oper- ating income (EBITA) of SEK 9 million (15). “The efficiency improvement measures carried out at Nolato Industrial had their intended effect during the quarter, with earnings rising by SEK 16 million compared with the second quarter. Volumes have stabilised at a low level for most of our customer segments, although our customers’ lead-time remains short.” The Group’s sales for the first nine months of 2009 totalled SEK 1,816 million, representing a reduction of 13% compared with the same period in 2008. Operating income (EBITA) was SEK 103 million (184). The cash flow stood at SEK 60 million (144), with net debt of SEK 120 million (250). Hans Porat, President and CEO of Nolato. Dear shareholders, customers, employees and other readers Welcome to the latest edition of Nolato Magazine, which I trust will make for enjoyable and informative reading. With motivated staff, a sharp customer focus, tailored resources and a real fighting spirit, we have succeeded in developing the Group even during the deepest recession any of us have ever experienced. For example, you can read about Nolato Plastteknik on pages 6–7. Their ability to cope with the downturn bears witness to their foresight, and they have succeeded in minimising the impact of the recession through perceptivity and creativity. I believe that the market downturn is an excellent example of the importance of cost-effectiveness. Always striving to be a lean organisation, which can then be made even more efficient. Never resting on our laurels – always striving instead to be even better. The fact that our customers appreciate our efforts and approach is demonstrated not least by the recent supplier awards from Sony Ericsson, SKF and Astra Tech, which are reported on in this issue. We are proud and grateful, and have been spurred on to become even better! Alongside our continuous improvement work and streamlining, we have recently updated our underlying values document and policies. You can find out more about these on page 14 and on our website. Hans Porat CEO and President Bo Norlin new MD of Nolato Sunne Bo Norlin was appointed Managing Director of Nolato Sunne AB at the end of the summer. Bo is a market economist, and was previously Managing Director and Market Developer at Calix/Preciform. Before that, he held a number of management positions within the automotive and telecommunications industries. Nolato Magazine is produced for our customers, shareholders and employees, and anyone else with an interest in the group. Editor: Mats Håkanson [mats@strateginfo.se]. Printing: JMS, Vellinge, November 2009. Translated into English by Teknotrans. Nolato AB, 260 93 Torekov • tel. +46 431 442290 fax +46 431 442291 • e-mail info@nolato.se website www.nolato.se 3 <a href="/v5/viewer/files/Default_s.aspx?gKey=z5x01xt3&amp;gInitPage=4">Nolato Magazine Sida 4 A mirror-like finish in Kri</a> stianstad, where Nolato Medical is now combining its medical experience with expertise from automation projects and high-volume projects within the mobile phone sector. Nolato Medical gathers its strength and broadens its resources Despite the recession and the financial crisis, the Nolato Medical business area is experiencing steady growth. Now the business area is gathering its strength and broadening its resources even further, in order to create the optimal conditions for running major customer projects involving large-scale production. Nolato Medical’s operations have shown extremely strong growth in recent years, with sales currently six times higher than when expansion began in 2003. From relatively regional operations focused around the Öresund Region, Nolato Medical has grown to become a global player, most recently setting up operations in China. This growth has occurred both organi- cally and through acquisitions, resulting in the business area gaining both new techniques and new resources. At the same time, the existing business has expanded and been strengthened. Adapt according to customer needs “We have a clear goal for our development,” explains Christer Wahlquist, President of 4 Nolato Medical. “We listen to our customers and adapt our offering according to their needs.” In 2009 another major step has been tak- en. This may not have been as high- profile or spectacular as an acquisition, but it was no less important, since it creates new opportunities for running major customer projects involving large-scale production. A customer-focused organisation “Our customers clearly signal the fact that they want to work with suppliers who can offer them more. They want broader partners who can also support them during the early stages of product development. And this is something we are now ready to offer.” The business area’s three Swedish resourc- es in Torekov, Lomma and Hörby previously worked fairly independently with their own organisations for projects, quality and production. Now, these units are being combined to create a single customer-focused, powerful organisation, with joint management and a shared way of working. The units will also be joined legally through the formation of a new company: Nolato MediTech. “Our customers will now experience the same process and one Nolato, regardless of which unit they work with,” adds Christer. Coordinated project organisation The project organisations will now also be fully coordinated, making it possible to run a greater number of considerably more com <a href="/v5/viewer/files/Default_s.aspx?gKey=z5x01xt3&amp;gInitPage=5">Nolato Magazine Sida 5 plex system projects than b</a> efore. Project management and automation expertise and resources are also added to the new organisation, based on Nolato’s extensive experience in Kristianstad of working with customers within the telecommunications sector. “By cross-pollinating the in-depth medical experience of Nolato Medical with knowledge from mobile phone projects, we will now have unique opportunities to offer our customers complex system product development,” says Alf Billgren, Project Director in the new organisation. “We can then manufacture these products using highlyautomated, high volume production.” New trends mean new requirements “Since the trend within the medical field is heading towards consumer-adapted products that do not signify illness, suppliers with design expertise and experience of concepts such as ‘time-to-market’ are becoming ever more important to our customers. This places new requirements on us at here at Nolato Medical, but it also brings exciting new opportunities.” Nolato Medical’s marketing organisa- tion is also being adapted in line with the changed circumstances. “We received feedback in the past about the fact that we had sale contacts who were linked to a unit rather than a customer,” admits Johan Christiansson, Director of Sales and Marketing. “We have therefore made marketing into an overall function for the entire business area, dealing with all marketing issues except those relating to pharmaceutical packaging. “Our sales staff are now more accessible and our customers have a single commercial contact, regardless of whether the project is ultimately carried out in Sweden, Hungary or China.” One quality system For customers, the new way of thinking will also be evident in that they will encounter a single quality system regardless of whether they come to Torekov, Lomma, Hörby or Kristianstad. “Before, we used three different quali- ty systems, but customer requirements and ways of working tend not to differ significantly,” explains Arléne Dahl, Director of Quality at Nolato MediTech. “We are now learning from each other and working on a joint system. “Additional resources also mean that we can be much more proactive in our work with customers, continuously securing our processes. For example, we are introducing quality managers who work closely alongside our customers, as well as quality engineers who will be involved in projects from an early stage. We have also broadened our validation expertise.” Alongside Nolato Medical’s creation of a powerful skills centre in Sweden, global expansion is continuing. “Our ambition is that we should have the same way of working wherever we are in the world,” concludes Christer Wahlquist. “We will be expanding our operations in Hungary and China, and we are planning to enhance our geographic spread through strategic acquisitions in the US and Western Europe. “All this will be done with the intention of being close to our customers, in order to keep supporting them in their growth.” A combined project organisation, a single quality system and one overall commercial contact gives the optimal conditions for running large-scale customer projects. 5 <a href="/v5/viewer/files/Default_s.aspx?gKey=z5x01xt3&amp;gInitPage=6">Nolato Magazine Sida 6 Eva Thorsell Motivated staf</a> f who can cover for each other are a key element of the way in which Nolato Plastteknik works. Jerry Dorn A recipe for success in the recession: A firm grasp right from the start, cooperation and a fighting spirit Nolato Plastteknik has found itself at the heart of industrial Sweden’s financial crisis, with a floundering automotive industry and subcontractors brought to their knees. The company has coped well, however, thanks to early action, its motivated staff and its fighting spirit. “Although it’s been a tough time for everyone I’m absolutely convinced that we are now even stronger than we were before the financial crisis!” Just a short time after Magnus Hettne took over as Managing Director of Nolato Plastteknik in the summer of 2008, Swedish industry started to flounder and the deepest recession in living memory was upon us. “Immediately after the summer, we started to notice that our customers were becom- 6 ing more cautious,” recalls Magnus. “There weren’t any immediately obvious signs, but there was something worrying in the air. “There was a sense of unease throughout the entire system, so we gradually started to prepare for a downturn. Our first move was to lay off all hired-in staff straight after the holidays. Shortly afterwards, the crisis struck – firstly in the automotive industry and then in most of our other customer segments.” Nolato Plastteknik’s preparedness meant that staffing and costs could be adapted quickly according to the new situation. Firm grasp straight away “We took an extremely firm grasp straight away, which involved giving notice to employees and making cost reductions. Obviously this wasn’t easy, either for those who lost their jobs or for those who remained. However, once we started to understand just how deep the recession was <a href="/v5/viewer/files/Default_s.aspx?gKey=z5x01xt3&amp;gInitPage=7">Nolato Magazine Sida 7 likely to be, everyone real</a> ised that these measures were essential.” More flexible working Union cooperation went extremely well, and one of the results of this was that it was possible to reach an agreement on more flexible working for the remaining employees. “Previously, our production groups had been more isolated. Now, the key word is cooperation. Thanks to additional training, our production workers provide cover in the event of illness or downtime.” This new way of working has also created a greater sense of solidarity and motivation than before. “Our organisation was effective before, but when things are really tough everyone gets even more creative in the search for solutions.” One essential condition for this was that technical resources were excluded from the cut-backs. Time has also been set aside for improvement projects, such as creating even more efficient production flows and preparing capacity for new projects. A good mix of customers After all, new projects arise even in tough times. “We have worked extremely single-mind- edly to strike a good balance between different customer groups,” explains Claes Fredriksson, Marketing Manager at Nolato Plastteknik. “Today, we have a good mix of customers within the automotive industry, packaging and other industries. “And it’s not all bad news. Over the course of the year, we have won new business and strengthened our market position, and we are increasing our volumes during the autumn – including in the automotive industry.” Both Magnus and Claes agree that hav- ing a stable owner like Nolato has been a real help. The customers can see that there is financial strength and a long-term view, which improves the prospects of completing projects. “And then there are our skilled employees and Nolato’s excellent culture, which mean a great deal when it comes to positive customer relationships,” adds Magnus. “These have also formed the basis of our work to both slow down and speed up through the recession. This will create a stable platform for doing good business once the market recovers.” Nolato ImageTech gives opportunities to customise products for market demands Nolato Telecom offers a wide range of different custom printing and localisation technologies for smaller series and limited edition models that used to be impossible or too expensive earlier. This provides opportunities for customising products to meet the latest market demands. Thanks to techniques like tampo printing, hot-stamping and ink jet-printing you can create patterns and visual effects to enhance your products and strengthen your competitiveness. Combining Nolato ImageTech’s customisation opportunities with high-end painting and coating ensures good reproducability, flexibility and quality. 7 Nolato Telecom named Sony Ericsson’s top supplier 170 suppliers from around the world gathered for Sony Ericsson’s Supplier Conference in Beijing, where Nolato Telecom won the supreme accolade of Supplier of the Year. The award was presented by Matthew Costello, Corporate Vice President Operations, to Nolato’s President and CEO Hans Porat. <a href="/v5/viewer/files/Default_s.aspx?gKey=z5x01xt3&amp;gInitPage=8">Nolato Magazine Sida 8 Efficient transport system </a> protects long and heavy drills Atlas Copco Secoroc’s rock drills are up to eleven metres long, weighing up to 150 kg. This places tough demands when it comes to packing and protecting them ready for worldwide shipping. Atlas Copco Secoroc in Fagersta is the world leader when it comes to rock drills, which can be up to eleven metres long and weigh up to 150 kg. These drills are used all over the world, so careful transportation systems and effective, easy-to-use protection are essential. This protection is developed and manu- factured by Nolato Hertila in Åstorp. The two companies started working together around fifteen years ago. The wooden transportation systems that were used at the time needed to be replaced, as countries such as the US would not permit untreated wood products to be imported. “We started looking at a solution where the components were made from plastic,” explains Patrik Peterson, Business and Project Manager at Nolato Hertila. “We tested a variety of materials, and found one that both we and the customer were satisfied with. Changing over to plastic also meant a reduction in transportation weight and less sensitivity to external factors such as moisture.” Coping with large forces Today, Nolato Hertila manufactures a complete transportation system for the rock drills, including the bearers and spacers that the drill rods are affixed to during transportation, as well as a large number of variants of protective caps for drill crowns, couplings and threads. The parts are profiled for Atlas Copco in the company’s distinctive shade of yellow. “The material has been developed over the years, and we are now manufacturing the second generation of the components,” continues Patrik. “Since the rock drills are heavy, the transportation system is subjected to significant forces. The plastic must not 8 bend – it must withstand the strain just as well as the wood that was used previously. The drills are used in both desert and arctic climates, so the plastic mustn’t melt or crack under extreme temperatures.” A high degree of materials expertise The rock drills are used in a number of different applications, from mining and road works to drilling for geothermic heat. The company has around a 30 percent share of the global market, and its product range includes 1,300 standard items. Around half of these are fitted with protection manufactured by Nolato Hertila. “Our cooperation is developing all the <a href="/v5/viewer/files/Default_s.aspx?gKey=z5x01xt3&amp;gInitPage=9">Nolato Magazine Sida 9 time,” says Mats Persson, D</a> istribution Centre Warehouse Manager at Atlas Copco Secoroc. “Nolato Hertila boasts a high degree of materials expertise, helping us to develop plastic components that we can rely on and that meet our requirements. As well as transportation systems, Nolato Hertila also manufactures yellow rod cups. These are used to mark the drilling holes, protect the holes from gravel and debris, and load them with dynamite for blasting. Continuous development Nolato Hertila constantly thinks about ways in which the transportation system could be developed. “If we don’t think it’s possible or neces- sary to make them even more durable, we can always try producing them to the same quality but at a lower price to the customer,” adds Patrik. “Everything can be improved, and our job is to find ways of doing this. For example, this second generation of transport components is both stronger and cheaper than the first.” “We are delighted with the way in which Nolato Hertila looks after us and our needs,” concludes Mats. “They help us with development, materials expertise and manufacturing – as well as holding some stock for us where we work to specification. This really is an excellent partnership!” Mutual benefits as international environmental students analyse Nolato Students from all over the world come to the International Institute for Industrial Environmental Economics at Lund University to study environmental issues. Since the master’s degree in Environmental Management and Policy was launched in 1995, nearly 400 students from around 70 different countries have completed the course, with around 30 researchers completing their doctorates. As part of the institute’s research into the role and work of industry when it comes to sustainable development, Nolato has recently been involved in a number of projects for the mutual exchange of experience and knowledge. Environmental strategy analysis For example, a group of four students from the UK, Finland and Sweden have studied Nolato Medical Rubber’s operations in Hörby to analyse the company’s environmental strategy and the way it deals with environmental issues. “The students’ report included many excellent proposals for improvements, and we learnt a great deal from working with them,” says Arléne Dahl, Director of Quality at Nolato Medical. The students also found the collaboration rewarding: “This analysis gave us the opportunity to put what we had learnt at the IIIEE into practice,” explains Finnish student Kirsi Mäkinen. “It was particularly interesting thinking about how the environmental management standard ISO 14001 could be integrated into the company’s overall management system,” adds Fiona Wilson from the UK. Awareness in China Another IIIEE project that involved Nolato was carried out by Shan Zhou from China. She recently completed her master’s degree dissertation, in which she investigated how small and medium-sized Chinese companies can be made more environmentally aware. This is a particularly important challenge, Kirsi Mäkinen and Fiona Wilson from the International Institute for Industrial Environmental Economics analysed Nolato. since these companies are responsible for many of the country’s environmental problems. Shan’s research included a case study in which she reviewed the environmental and social requirements placed by Nolato Beijing on its subcontractors, and how some of these companies reacted to these requirements. “Environmental legislation is particu- larly important, and with economic control measures this can achieve a great deal,” she explains. “But what’s also important is that larger companies impose environmental requirements on their subcontractors and then follow up on these.” Shan’s research demonstrates the impor- tance of imposing environmental requirements within the delivery chain. “Requirements from companies such as Nolato are a crucial piece of the puzzle when it comes to the adaptation of small and medium-sized Chinese companies.” In her doctoral thesis “Extending the Environmental Focus to Supply Chains”, Dagmara Nawrocka studied factors such as the environmental requirements imposed by Nolato’s customers and other companies’ customers, and how these requirements are then conveyed onwards through the supply chain. “The environmental management system ISO 14001 plays an important role in this context,” she notes. “But one of the main conclusions of my thesis is that management systems can be developed even further and made sharper to provide even more support for conveying these requirements within the supply chain.” 9 <a href="/v5/viewer/files/Default_s.aspx?gKey=z5x01xt3&amp;gInitPage=10">Nolato Magazine Sida 10 Pharmaceutical packaging s</a> hould be easy to open for people such as those with rheumatism, whilst still being difficult for children to open. This contradictory conundrum formed the basis for a fascinating collaborative project between Chalmers University of Technology and Nolato Cerbo. Sustainable design is all about creating in-depth relationships Developing suitable packaging for pharmaceuticals involves finding solutions to a whole host of requirements, some of which can be quite contradictory. Not only does the packaging have to be user-friendly and easy to open even for those with reduced hand functionality, it also needs to prevent children from getting to the contents. In addition to this, it needs to meet a number of technical requirements, be cost-effective to manufacture and transport, be easy to fill and offer excellent opportunities for in-store exposure. In order to get a brand new view on the opportunities for meeting these requirements with a future range of pharmaceutical containers, Nolato Cerbo got in touch with the Design and Human Factors department at Chalmers University of Technology in Gothenburg. “As market leaders, we’re constantly striv- ing to be proactive and find new product development routes,” explains Nolato Cerbo’s Managing Director, Glenn Svedberg. “We spend a great deal of time addressing these issues, but we thought that it might be worth getting some ideas from people who wouldn’t be restricted by previous experience within our area of expertise.” Single unit cap In addition to user-friendliness and child safety, the project directive included a whole range of other requirements in terms of functionality. For example, it should be possible to manufacture the cap as a single unit for cost reasons, it should be possible to fit a capsule containing drying agents inside the cap, and it should be easy for the customer to fit the lid onto the container after filling it with pills. The packaging should clearly show whether it has been opened previously, withstand being dropped into bags and cardboard boxes during production without being damaged, meet the requirements in terms of airtightness and light transmission, “The cooperation with Chalmers has led to a solution with a great deal of potential,” say Örjan Andersson and Dennis Broberg at Nolato Cerbo. 10 <a href="/v5/viewer/files/Default_s.aspx?gKey=z5x01xt3&amp;gInitPage=11">Nolato Magazine Sida 11 maximise the labelling sur</a> face and be easy to handle in-store. Interesting project At Chalmers, it was Ulrike Rahe, professor of industrial design, and Therese Samuelsson, graduate engineer in technical design, who were responsible for project. “We thought this was a particularly inter- esting project,” says Professor Rahe. “As soon as a product comes into contact with a person, a relationship is formed that can be good or bad. Putting it simply, sustainable design is all about creating in-depth relationships that appeal to our innermost needs. “For example, a traditional pharmaceuti- cal container tends to be round, despite the fact that this is not the optimal shape for users such as those with rheumatism if they are to get a firm grip on it. The lid often features a tamperproof seal that makes it even harder for those with weak hands, and it can sometimes be hard to understand how the designer intended the container to be opened.” Easy to open with weak hands “And the problem of weak hands is a widespread one. Twenty percent of the European population suffers from impaired hand functionality as a result of factors such as illness or age. This corresponds to more than 60 million people. Many of them need help with things like breaking the tamperproof seal, which requires significant strength.” As a result, the Swedish Rheumatism Association’s criteria for easy-to-open packaging formed part of the basis for the work involved. These state that only low levels of force should be required in order to open the container, precision gripping should be avoided, the surface that comes into contact with the hand should be large, and good coordination should not be needed in order to open the lid. Following impartial concept work and testing with groups of rheumatism sufferers and children, the solution for ensuring a firm grip proved to be either an angular container with bevelled and rounded corners or a triangular container. “All surfaces are gently domed, making it even easier for those with weak hands,” says Örjan Andersson at Nolato Cerbo. The cap, which is also angular, has been designed with curved surfaces that create an interaction between concave and convex surfaces, while also making it easier to twist. Nolato Cerbo first to achieve ISO standard Nolato Cerbo is thought to be the first Nordic company to be certified in accordance with ISO 15378, the new pharmaceutical packaging standard. “We thought this was a very interesting project, says professor Ulrike Rahe.” “The angular container ensures a firm grip, and is easy to secure against a leg or the edge of a table,” explains Professor Rahe. “The shape also makes the container easy to pack, it has a large labelling surface and it can be lined up nicely on shop shelves.” The lid is manufactured as a single unit, making production considerably more costeffective than solutions that require various components to be assembled. Difficult for children to open The new concept container’s child-safety features are based on the user having to unscrew the cap from the container’s threads and then having to continue turning the cap to a marked position, from which it can be lifted straight upwards. The cap must be twisted without pulling it upwards – if it is pulled and twisted at the same time, the cap gets stuck. “The cooperation with Chalmers has led to a solution with a great deal of potential,” adds Nolato Cerbo’s R&D Manager Dennis Broberg. “We have copyrighted the concept and will now continue to develop the design while working on the shape and form of the container in greater detail.” The new concept was unveiled at the Scan- pack Fair in Gothenburg in mid-October 2009, where it was received extremely well by the market. “This new certification represents further reassurance for our customers that we offer safe, high quality products,” says Marianne Johansson, Quality Manager at Nolato Cerbo. “It shows that we meet the requirements that the market places on us. We have also sharpened our focus on long-term planning, finding out in advance about the implications of changes to design and production processes for both pharmaceutical companies and consumers.” Covering the whole process ISO 15378 is a complete quality system for pharmaceutical packaging that combines the general requirements of ISO 9001 and the industry-specific requirements of Good Manufacturing Practices (GMP), covering the entire process from design through to manufacture and delivery. “Today, our customers have strict require- ments in terms of risk analyses, validation and traceability,” continues Marianne Johansson. “ISO 15378 helps to ensure that we remain at the forefront of this field.” Clear quality recuirements “Certification makes it clear which quality requirements we work with, both for our customers and within our own organisation. This is fully in line with other Nolato Medical companies. “As far as we and our certification body know, Nolato Cerbo is the first Nordic company – and one of the first five in Europe – to be certified in accordance with the new standard, which in time will come to be the guiding principle for pharmaceutical packaging.” 11 <a href="/v5/viewer/files/Default_s.aspx?gKey=z5x01xt3&amp;gInitPage=12">Nolato Magazine Sida 12 Nolato Lovepac Converting </a> sets up in India India is becoming more and more important to global industrial and electronics manufacturers. Now, Nolato Lovepac Converting will also be coming here. “Nothing much to see here yet, just endless savannah and some half-built factory shells,” says Per Olofsson, General Manager at Nolato Lovepac Converting India. But there are great plans afoot for Sri City Special Economic Zone, as the area is called. About 90 minutes north of India’s fourth biggest city, Chennai, on the east coast of India, the biggest private Special Economic Zone and industrial park in India is rising from the tan ground. Or should one say industrial city? “Yes, this is due to become a complete city of some 70 km2,” continues Per. “Industrial facilities, homes, schools, shopping malls, food courts, hospitals, parks, lakes, you name it.” We go where our customers go Nolato Lovepac Converting has had India on the radar for a few years now. “We started looking closely at India a few years ago, and in the meantime we started the Shenzhen production unit about two years ago,” says Dan Wong, Managing Director of Lovepac Converting. Chennai is sometimes called the “Shenzhen of India”. The area is an automotive Sri City Special Economic Zone in southern India currently resembles a building site, but is quickly becoming a brand new industrial city where many of the biggest electronics companies are now starting production. 12 <a href="/v5/viewer/files/Default_s.aspx?gKey=z5x01xt3&amp;gInitPage=13">Nolato Magazine Sida 13 and electronics manufactur</a> ing hub, and corporations like Dell, Nokia, Motorola, Samsung, Perlos, Flextronics and Foxconn have all set up plants here. “We go where our customers go,” contin- ues Dan. “All of them, as well as a number of potential customers, are here, and they produce huge volumes.” Easier but more complex About a year ago, Nolato started to develop the business case for the India establishment. The plan was approved by the board in April 2009, and the hard work began. “Compared to the China set-ups, some things are easier, but many are more complex,” says Per. “Everybody speaks English here, and the general educational level is high, which make certain aspects of the work easier. “On the other hand the bureaucracy has developed into an elaborate fine art, surrounded by legal labyrinths. So far we have collected 32 permits, each of which required complicated negotiations.” The infrastructure is undeveloped, which creates unique circumstances when it comes to roads and communications, electricity, water and sewage. “I would say the infrastructure is like Chi- na was 10 to 15 years ago,” says Dan. “But it will change fast.” The start-up capacity of the Chennai fac- tory is about half of the Shenzhen operation and about a quarter of the Beijing factory, which hosts research, development and design as well as production. Nolato Lovepac Converting is renting a 1,000 m2 facility built by the landlord to specification. “We have developed more or less a stand- ard set-up,” says Dan. “We know by now how to get a factory going.” At present, there are about a dozen employees installing the machines in the factory, and in January 2010 the first deliveries will be shipped out. Things are changing fast “Compared to China, the workforce is still not used to Western ways and standards,” says Dan. “It took China some time to pick up, and it will take some time here as well.” But things are changing fast. In a few years, the pioneers of Nolato Lovepac Converting in Chennai will have become seasoned veterans, Sri City will be turned into an all-new city basking in the sunlight, and the dusty savannahs will be long gone. “It’ll be nice to read this article in three years,” says Per with a laugh, “remembering what it was like in the good old days in India.” Secure production and lower costs with Nolato EMC Production Center Nolato Silikonteknik is now launching a new shielding concept for the telecommunications and electronics industry: EMC Production Centers. The concept is based on licensing local companies around the world, with an emphasis on Asia, and represents another step in Nolato Silikonteknik’s transformation into a company that deals exclusively with technology and materials. “The new Nolato EMC Production Cent- er concept will standardise local manufacturers’ processes,” explains Bei Ding, who deals with technical and marketing support at Nolato Silikonteknik. “For example, we are upgrading our measuring and quality control systems through each EMC Production Center having a standardised measuring station that has been specially developed to ensure the high quality of the end-product.” In order to be licensed, each EMC Produc- tion Center must also meet other requirements in terms of flexibility, resources, costeffectiveness and quality. “Working with our licensed shielding sup- Joel Arun, Suresh Rajendran, Chandra Sekar, Nitty D, Stephen E, Joe Lee and Per Olofsson are working to set up Nolato Lovepac Converting’s new Indian production unit. pliers means more secure production, clearer feedback and lower costs for our end-customers.” 13 <a href="/v5/viewer/files/Default_s.aspx?gKey=z5x01xt3&amp;gInitPage=14">Nolato Magazine Sida 14 Together with Nolato’s oth</a> er values documents and central policies, the Basic Principles can now be found in “The Nolato Spirit”. Nolato Basic Principles ■ We are professional – We are professional, and we strive for long-term profitability. – We combine skill and experience with new ways of thinking. – We combine skill and experience with new ways of thinking. ■ We are well organised – We build our operations on a shared foundation. – We take opportunities and solve problems when they arise. – We make sure our operations are well organised. ■ We are responsible – We work actively towards sustainable development. – We focus on social responsibility, integrity and openness. 14 Nolato’s core values combined in “The Nolato Spirit” Nolato has strong core values, which have evolved from the down-to-earth, ethical and professional philosophy that has characterised the company ever since it was founded in 1938. Now the core values are published in the booklet “The Nolato Spirit”. Nolato’s Basic Principles have long made up the common values platform that acts as the guiding force for all operations and all employees, wherever they are in the world or wherever they work within the organisation. These Basic Principles still apply, and are revised every few years in order to reflect current circumstances and conditions in terms of professionalism, organisation and responsibility. During the autumn of 2009, a new version of the Basic Principles was circulated within the Group. This time, the Group decided to combine them with the other documents and policies relating to Nolato’s values, producing a booklet entitled “The Nolato Spirit”. In addition to the Basic Principles, this booklet also includes Nolato’s Code of Conduct, Environmental Policy, Quality Policy and Information Policy. Printed versions are available in Swedish, Hungarian and simplified Chinese (Mandarin). PDF versions are also available in Ger- man, French and Spanish. All versions also include an English translation to help overcome language barriers. You can study the Nolato Spirit at www. nolato.com under “Nolato Group”. <a href="/v5/viewer/files/Default_s.aspx?gKey=z5x01xt3&amp;gInitPage=15">Nolato Magazine Sida 15 Better transparency with G</a> RI sustainability reporting Issues relating to the climate, the environment and social responsibility rank increasingly high in our consciousness. Sustainability issues have therefore long been on the agenda at Nolato in the form of environmental certification and general environmental considerations. Many external organisations also critical- ly review companies’ environmental actions, and Nolato is reviewed by organisations such as Robur, Amnesty Business Group and Folksam. In addition to these professional interests, many other parties also want to know what Nolato has achieved when it comes to sustainability. For many years, Nolato has reported on its environmental work in its annual reports. However, this has been based on Nolato’s own classifications, since there have been no general, globally-accepted reporting systems for how industries should report on their performance with regard to sustainability. In recent years, the Global Reporting Ini- tiative (GRI) has become increasingly prominent in terms of voluntary reporting of companies’ environmental and sustainability reporting. GRI has the backing of the UN, and around 1,000 companies current- ly report in accordance with the GRI guidelines. Since the 2008 Annual Report, Nolato has been one of these. “We are seeing a growing need for access to information in relation to our sustainability work,” says Hans Porat, President and CEO of Nolato. “This information is important to our shareholders, our employees and other interested parties, and reporting in accordance with an internationally-accepted system lends us greater credibility. “We also get access to data that makes it easier for us to pinpoint our strengths and weaknesses.” Before the 2008 Annual Report, a new reporting system will be launched in accordance with GRI guidelines. The result of this will be a brand new presentation in the annual report, together with full supplementary information on our website. Here, interested parties will also find the self-declaration for the sustainability report, which was completed in line with GRI guidelines. “Ahead of next year’s report, we will be looking to raise the bar even further, creating an even better annual report. Transparency is important to us, including when it comes to our environmental impact.” “At Nolato, we shall always meet our customers’ exacting requirements, needs and expectations” While updating the wording of Nolato’s core values, a new Quality Policy was also devised for the Group: “At Nolato, we shall always meet our customers’ exacting requirements, needs and expectations with sensitivity and a customer focus, thus delivering services and products of the right quality, every time. We shall achieve this through our employ- ees’ professionalism and commitment, ongoing quality training, carefully-designed quality systems and continuous, proactive improvement. All the group’s operations shall be qual- ity certified in accordance with ISO 9000 and/or industry-specific certification. We also require that our suppliers have effective quality systems and share our views when it comes to quality. Our quality performance shall be evalu- ated on an ongoing basis by taking measurements, recording deviations and carrying out external audits.” Nolato tightens up its transportation requirements Heavy road vehicles make up a significant portion of the traffic on our roads, resulting in a number of negative consequences for society. For example, lorries and other heavy road vehicles account for around eight percent of Sweden’s road traffic, but also account for around 18 percent of traffic-related injuries. These vehicles also produce emissions that affect the environment, the climate and human health. As a result, Nolato tightened up its requirements in a number of areas when procuring vehicles recently. “The intention is to achieve safe, ener- gy-efficient transportation that contributes towards low emissions of greenhouse gases and other air pollutants,” explains Bengt Jorlén from Nolato Polymer. The procurement process was based on a tool devised by the non-profit organisation QIII, which is owned by the Swedish Trade Union Confederation and the National Society for Road Safety. “The QIII system is like an answer book in the form of a questionnaire, with a number of requirements that need to be met. Both the basic requirements and a number of specific requirements relating to working environment, road safety and the environment must be met. “There are many requirements, but they are also highly relevant. For example, these relate to risk assessments for the working environment, crisis management planning, systems to avoid exceeding speed limits, policies relating to alcohol, drugs and tiredness, and measures to reduce fuel consumption and environmental emissions.” 15 <a href="/v5/viewer/files/Default_s.aspx?gKey=z5x01xt3&amp;gInitPage=16">Nolato Magazine Sida 16 Return address: Nolato AB,</a> 260 93 Torekov, Sweden Nolato Telecom offers a number of different techniques for manufacturing display windows, lenses, etc. Maximum flexibility and design freedom to produce windows with unique properties Not so long ago, windows were small and fragile. Today, Nolato Telecom can offer windows for displays, covers, lenses and other parts of innumerable sizes, shapes and mechanical and cosmetic features. Flat, milled windows are produced with high-precision CNC cutting, including video- controlled CCD machines, for extreme tolerance control. Moulding technologies such as conventional moulding, compression moulding and two shot moulding give integrated lenses and 3D shapes with unique mechanical properties. Nolato Telecom offers etching, screenprinting and pre-hardened coating. Nolato’s own, patented hard coating gives a product with excellent mechanical properties without affecting the light transparency. The coating also reduces surface irregular- ities thus enhancing optical properties. Combining these technologies gives maximum flexibility and design freedom.