Nolato: Overall Mobile-Phone-Parts Demand Remains Good

STOCKHOLM -(Dow Jones)- Swedish firm Nolato AB (NOLA-B.SK) Tuesday said overall demand from mobile-phone manufacturers for the plastic phone components it produces remains good.

Nolato Chief Executive Georg Brunstam said the company's move earlier Tuesday to trim its Swedish workforce reflected a drop in demand for its domestically-made plastics products.

Demand for its overseas-made products hasn't waned, he said.

Nolato has been steadily moving its production to lower-cost countries so it can supply mobile-phone companies that have similarly moved their output bases to Asia and eastern Europe.

"Volumes are good and it's a positive market. We are moving production along with our customers," Brunstam said.

Nolato has boosted its staff in lower-cost countries, mainly China, to 1,642 at the end of 2004 from 749 two years earlier, while slimming its Swedish operation's workforce to 1,058.

Its main clients for mobile-phone plastic parts are Sony Ericsson, a joint venture of Sony Corp. (SNE) and Telefon AB LM Ericsson (ERICY), as well as Siemens AG (SI), and Nokia Corp. (NOK).

Company Web site: http://www.nolato.com

-By Magnus Hansson, Dow Jones Newswires; +46 8 545 130 91; magnus.hansson@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 23rd August 2005