The group is investing SKr20m in the Beijing plant to expand capacity

The group is investing SKr20m in the Beijing plant to expand capacity

Sweden’s Nolato is to transfer some production of its mobile phone mouldings to China, cutting 150 jobs at its headquarters in Kristianstad.

It will invest SKr20m (E2.2m) at its plant in Beijing to expand capacity. It will recruit another 250 staff by the end of the year, taking the site’s workforce to 800.

Nolato president and chief executive Georg Brunstam said: “Unfortunately, our customers’ transfer of manufacture from Europe to China means a simultaneous reduction in demand for production at the Nolato Alpha plant in Kristianstad, Sweden.”

Announcing its third-quarter results, Nolato said sales in the telecom division rose 134% compared to the same period last year, to SKr459m (E50.8m). Profits rose to SKr27m (E2.99m), from a loss of SKr19m (E2.1m) last year.

However, the company warned that the improvement – due to a substantially higher value of purchased components among its mobile phone customers – might be temporary. “Because currently known future projects will have a lower proportion of such components, sales will be adversely affected during the next year.”