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Norrtelje Elektronik deepens co-operation with Polish electronics manufacturer

Norrtelje Elektronik has chosen one of its subcontractors in Central Europe, Arotronic, as a preferred supplier of volume production. A new agreement gives Norrtelje Elektronik a seat on Arotronic's board with a casting vote on strategic issues.

For many years, Norrtelje Elektronik, like other electronics manufacturers, has been working with subcontractors for certain manufacturing operations.
- A production facility necessarily has a specialisation and is particularly suited to certain jobs. Norrtelje Elektronik has specialised expertise in advanced electronics production with short lead times. The co-operation with our partners makes us much broader. Today we offer everything from cleanroom technology to volume production of box-builds," says Mats Hultin, CEO of Norrtelje Elektronik.

Strategic influence increases security

Work with subcontractors is governed by co-operation agreements, but due to increased orders, Norrtelje Elektronik has now chosen to tie one of its subcontractors even closer to it. In a new agreement with Arotronic, Norrtelje Elektronik is given board representation in Arotronic with a casting vote on strategic issues."We see an increased need for products with large volumes and high manual labour content; Arotronic is the perfect subcontractor for sub-assemblies of such products. Our new agreement makes the situation even more secure by allowing Norrtelje Elektronik, for example, to be involved in influencing Arotronic's choice of machines and personnel," continues Mats Hultin.

Specialisation for continued growth

Hultin also emphasises that it is not about moving jobs from Sweden to Poland. Norrtelje Elektronik does not believe in the idea of transferring entire projects to Poland. On the contrary, the company sees the opportunity to concentrate on the work it specialises in at the factory in Norrtälje. In this way, the management expects that the total amount of work will increase and that Norrtelje Elektronik will continue to grow in Sweden.

Norrtelje Elektronik relinquishes part ownership

- Our basic principle is not to own factories outside Sweden. Experience shows that acquisitions in Central Europe can entail great costs and difficulties, without providing corresponding benefits. Deeper co-operation without ownership is a more flexible solution - and therefore better for our customers," says Mats Hultin.
All work with subcontractors is done under the auspices of Norrtelje Elektronik; Norrtelje Elektronik is responsible for planning, preparation and quality control. AQL checks are carried out on all incoming goods, regardless of whether it is an IC circuit or a sub-product made by a subcontractor.

Ilona Lukaszewicz, CEO of Norrtelje Elektronik's Polish subsidiary, will be at the Komponent Fair in Gothenburg on 5-8 September to tell us more about Arotronic and production in Central Europe.