Nolato Has Grown into a Global, Competitive Force

At Nolato’s Annual General Meeting on May 6, 2025, Fredrik Arp formally stepped down as Chairman of the Board, handing over the reins to Klas Forsström. This marked the conclusion of a remarkable 16-year journey - one defined by growth, transformation, and steadfast commitment to Nolato’s success. Reflecting on the journey, Arp shared his thoughts with Nolato Magazine. 

Henrik Jorlén (to the right) thanked outgoing Chairman Fredrik Arp for 16 successful years of leadership

“Over these years, Nolato has grown from SEK 2.6 billion to nearly SEK 10 billion in revenue. The business has become international. When I started, 40% of sales came from Sweden. Today, that figure is just 12%. Nolato has evolved into a global, high-performing and competitive company,” says Fredrik Arp. “This growth has been achieved both organically, in close partnership with customers, and through strategic acquisitions. Throughout it all, our focus on the Medical segment has remained a consistent priority.”

Nolato’s rapid growth has paid off handsomely for its shareholders. “The average annual return over these 16 years has been 22%, meaning that an investment of SEK 1,000 has grown to SEK 23,000. And we’ve never needed to go back to shareholders for capital through a new share issue-growth has been entirely self-financed,” he notes.

Two major waves of market demand helped propel Nolato’s expansion. “The first was mobile phones, which was a lucrative business for many years. The second was the VHP segment. In both cases, when the product became a  commodity, it was no longer as attractive. But we were well-positioned to capitalize on the demand during the boom years.”

According to Fredrik Arp, Nolato’s success is the result of many interlocking factors: “Support from long-term owners, strategic direction from the Board, and skilled leadership have all played vital roles. Continuity has been key. The Board’s job has been to define our direction, appoint the right people to execute it, and set the framework for measuring performance. It’s been a team effort, and as Chairman, I’ve enjoyed the role of team builder. ”

He adds, “As Chairman, you're more involved in the day-to-day business than other board members. That means close collaboration with the CEO on planning, strategy execution, investor relations, budgeting, ownership dialogue, and acquisitions. It’s a continuous process, though not as hands-on as being an executive, of course. My partnership with the CEO has been a very positive experience over the years.” Fredrik Arp points to customer trust as the greatest success during his tenure. “Trust is the ultimate proof that we’re doing things right. Growth is always about winning customer confidence, especially from large global players. When those customers choose Nolato, we need to be effective in converting that opportunity into value. We’ve built a strong industrial structure to make that happen.”

He’s particularly proud of one bold move: “I’m glad we had the courage to complete our U.S. acquisition - GW Plastics - during the pandemic. It was a major investment, and although I wish we’d seen faster results, we made it through successfully.”

At the AGM, Klas Forsström was elected as the new Chairman of the Board. Forsström, who joined Nolato’s Board in 2024, brings more than 20 years of senior executive experience from the Sandvik Group. He currently serves as President and CEO of Munters Group AB, a global leader in climate solutions for industrial applications. In addition, he is a board member of IPCO AB, a fellow of the Royal Swedish Academy of Engineering Sciences (IVA), and sits on IVA’s Business Council.