The Chinese authorities have introduced new regulatory requirements that include the manufacture of products in the Vaporiser Heating Products (VHP) area in China from October 2022. The processing of licenses has been ongoing since spring 2022. Like several other companies, Nolato has not yet received any such license. Nolato has consequently not produced any VHP products in China during the current month.
“Since the spring, we have been informed that a new form of licensing applies for VHP products, and we submitted the requested information. At the beginning of October, we were notified that Nolato was one of the companies that has not initially received this license. Since then, we have been working closely with the Chinese authorities to understand why and to put in place alternative solutions. Our overall assessment is that we are now at the stage where fourth-quarter sales and profit will be negatively affected, as we can no longer offset October’s production loss in the current quarter,” said Christer Wahlquist, Nolato President and CEO.
Nolato therefore estimates that total fourth-quarter sales for the Integrated Solutions business area will be in the region of half a billion kronor.
Nolato’s full interim report for the third quarter will be published on October 27 at 1:45 p.m. CET.