Diversification and cooperation in newly built Malaysia plant
Nolato takes a comprehensive approach, summed up in the One Nolato concept, with the whole of Nolato cooperating to achieve the best for both our customers and Nolato.
One practical consequence of this approach is that we are able to coordinate operations in a single country, even when it involves different companies and business areas. The benefits provided by having a dual site and shared solutions is more important than each business having its own site.
So we have multi-units at a number of locations around the world manufacturing for different parts of the Group.
Two different businesses
The new plant in Penang, Malaysia, is a good example of this. The facility now combines two different businesses in a shared modern and efficient production environment. Here Nolato Silikonteknik manufactures EMC shielding products and Lövepac Converting produces die-cut design elements for consumer electronics.
The General Manager in Penang is Allen Tan, who has been with Nolato since 2006, working in Kuala Lumpur, Beijing and Shenzhen before being tasked with setting up the new factory in Penang.
“Cooperation between the two companies and our multinational team here in Penang works really well,” says Allen Tan. “The cross-fertilisation between the two is stimulating for our local unit and provides a lot of experience and good examples to follow.
“One example is the advantage we gain over our competitors through Nolato’s strong emphasis on lean production,” he explains.
The Penang business is based on a number of similarly sized customers, which Allen Tan believes is a real benefit.
“We have a broad clientele rather than being dependent on individual large customers. Most of our customers are regional and well established in Southeast Asia. Some are part of large global groups, while others have emerged on their own in the region.”
The Malaysia-based facility has now also begun the process of achieving certification for the IATF 16949 automotive industry quality management system. Certification, which is expected to be completed by the third quarter of 2019, will result in further diversification by expanding the customer base.