Nolato ramps production for major medical molding program

Nolato has begun commercial production for a major medical molding program while reporting continued growth in drug-delivery devices and specialty materials serving data centers. (

Swedish injection molder Nolato AB has started commercial production for a major medical customer at a new plant in Hungary, adding manufacturing capacity as demand continues to grow for drug-delivery devices. Company executives said during a July 17 earnings call that production has begun and shipments started after the close of the second quarter. Additional capacity will be installed over the next several years as the program ramps up.

Nolato has not identified the customer, although the company has previously described it as a major medical program. Industry analysts have speculated the work could be tied to the fast-growing GLP-1 drug market because of Nolato’s long relationship with Novo Nordisk and its experience manufacturing injection pens and autoinjectors. “As we communicated when we announced this new program, we said that we will have a starting point in second quarter this year and then a gradual increase for some years,” President and CEO Christer Wahlquist said during the call.

“Reaching the full volume somewhere in 2029.” The project continues Nolato’s expansion in medical molding, one of the strongest markets for plastics processors. The company’s Medical Solutions business reported higher sales in drug-delivery systems and in vitro diagnostics during the quarter, while other medical markets remained stable.

For North American plastics processors, Nolato is best known for its 2020 acquisition of GW Plastics Inc. , the Bethel, Vt.-based custom injection molder and former Plastics News Processor of the Year. The deal added six molding plants in North America and significantly expanded Nolato’s medical manufacturing footprint. The company also reported strong growth in its specialty materials business, where sales increased 19 percent on demand from data centers, satellites, aerospace and defense applications.

“We see success in new products and technology areas, mainly data center,” Wahlquist said. Executives said higher oil prices also pushed up raw-material costs during the quarter. Chief Financial Officer Per-Ola Holmström said the company expects most of those increases to be passed through to customers during the third quarter.

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