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Norditek builds unique recycling test and competence center in Kungsbacka, Sweden

June 8, 2023 Regulatory

- The transition to a circular society cannot wait and we are working hard to accelerate the development of more solutions to meet the growing demand. Our goal is now to build a test and competence center where our customers, the material owners, can submit their various waste and materials to test drive them directly. They will then go much faster from idea to full-scale test run. We are convinced that this will accelerate the development of a higher proportion of recycling in society," says Daniel Carlberg, CEO of Norditek.

To make recycling more efficient in more areas and with different materials, it is crucial to test different systems, sub-components and entire plants for each type of application. Norditek has therefore been working for many years with the so-called Norditek staircase. Together with customers, facilities are tested on site at the customer to ensure proper functionality and estimated financial return. The method ensures that the investment is profitable in the way defined in discussion with the customer.

In the new test and competence center, the majority of such tests can be done directly on site with very large savings for the customer and Norditek. In addition, testing will be possible in up to one tenth of the calendar time of the normal time in the so-called Norditek staircase. In the competence center, training for customers and other decision-makers will be held to teach about opportunities to speed up the transition. Training for operators is also important to optimize the capacity of existing plants. The new facility will also include a head office, workshop and equipment rooms.

- The test center is the truly unique feature of this facility where all recycling technologies are gathered in one place. Today, test materials for some projects have to be exported and then returned to Norditek for analysis. The export authorization process alone currently takes up to 6 months. In our test center, we will be able to test materials together with our customers for analysis and ROI in real time. Projects that previously took many months will now be evaluated in a few days because we now have the opportunity to test all materials at the same time. The test result means that an optimized solution for full-scale production can be established significantly faster to the customer," says Daniel Carlberg.

Norditek currently operates all over Sweden with over 800 machines that recycle excavation materials, construction waste, sand, compost soil, etc. Many of the machines are developed in-house in Umeå, where production is currently located. Machine production will continue in Umeå while the head office, which is currently located in Gothenburg, will move to Kungsbacka.

- We are happy to be able to continue operating in Kungsbacka municipality where we already have an equipment room and we hope to contribute to putting the municipality even more on the map with this new and unique facility in recycling. We are convinced that this is an important step forward for all companies and municipalities working to recycle more waste and material waste. We see that the need to be able to test drive materials is constantly increasing and with this investment we will be better able to meet the increasing demand for new solutions in the field of recycling, says Daniel Carlberg.

The decision on land allocation will shortly be formally made by Kungsbacka municipality and Elinor Filipsson, Head of Enterprise, welcomes the initiative.

"Today we are particularly happy to welcome another company to the Duvehed industrial area. Norditek will be another example of a manufacturing company in Kungsbacka with a strong focus on development and a clear focus on sustainability," she says.

Costs for the entire project are estimated at approximately SEK 35 million and will be financed through the company's own cash flow and bank financing. Over time, the project will improve the profitability of the company through a more cost-effective organization, while the working capital requirement will be significantly reduced as machines and facilities in the Norditek staircase will have a much faster turnaround time. It also allows for broader and more efficient customer processing, which will further accelerate growth. The test center will also provide an even better basis for customers' investment calculations regarding Norditek's facilities.

The project is expected to be completed in Q3/Q4 2024.

For further information: 

Daniel Carlberg
President and CEO Norditek Group AB

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