Nanologica AB (publ)

Hello and welcome to Redeye and this VD interview. Today we have Nonnologica's VD Andreas Bagvani and we will talk about the Q2 report that the company released last week. Welcome, Andreas. Thank you. Can you tell us more about the production in the big factory in the UK? Is everything going according to plan? And how is the capacity to meet demand on potentially larger orders?

There are many questions, but I thought that production is my favorite subject, so I would like to publish the text about production. As everyone knows, we reached a pretty big milestone in the beginning of May, when we first approved products from our large factory in England. And for those of you who follow the company, you know that we have not been satisfied with the quality. We have had a step that has failed for us and we solved that so that we got out. But we still run with quite low capacity precisely because we do not want to risk the product quality. And I would like us to just bomb on with the capacity that the entire factory has, but we don't do that anymore. I can easily say that I put 80% of my time on production. And that means that we have a number of initiatives that we have initiated and that we are running now and that we are running over the summer, which means that I hope that we will be able to go full and then also expand the capacity to after the summer. For those of you who are familiar with the company, we have a goal to be able to convert 100 million under 2024. And then you have to be able to produce for that. And we think we can do that. The factory is very, very large, so the theoretical capacity is very, very high. But now I would say that we are held back by the fact that we are quite cautious, we run with reduced speed, we run with smaller batches and perhaps not as large as we would like to do and as the capacity is just to ensure product quality. And there is a lot, if you keep doing that, there are a lot of two steps forward and then one back. But now we have taken quite a few steps forward. I would say that it is a monumental milestone actually to be able to say that we can approve products from that factory.

Interesting, and in the Q2 report you mentioned that NLAB Saga is now included in the production with a customer in Latin America. Could you explain the significance of this?