Nolato plans to close Portsmouth factory

Nolato’s Medical Solutions business area plans to consolidate the operations of UK-based Nolato Jaycare in 2020.

This will result in one of the company’s production plants, in Portsmouth, being closed by December 2020, when the current tenancy agreement expires.

Much of the customer base will be transferred to Nolato’s production facility in Newcastle, with the estimated cost of closure being around SEK 35 million (£2.8 million), with 115 jobs expected to be lost.

Chister Wahlquist, President and CEO of Nolato, said: “Our Portsmouth plant has mainly produced standardised pharmaceutical packaging with relatively low added value.”

“We have a modern, well-invested facility in Newcastle focusing on more complex operations that has gradually increased produced capacity, including through new cleanrooms.”

“The aim is to transfer much of the customer base to this facility. That will provide us with a more integrated offering across the business area, and we also see a number of synergies that will boost efficiency and earnings capability over time at Nolato Jaycare.”