Due to lack of location competitiveness, Nokia plans to close its German manufacturing and automotive supply unit plant in Bochum. The moves would reduce Nokia’s work force by 2,300 positions, or about 2 percent. Currently they are in talk to sell the plant to India’s Sasken Technologies.

“The planned closure of the Bochum production site is necessary to secure Nokia’s long-term competitiveness,” said Veli Sundbaeck, executive vice president of Nokia and the chairman of Nokia GmbH’s supervisory board.

“Due to market changes and increasing requirements for cost-effectiveness, production of mobile devices in Germany is no longer feasible for Nokia,” he said. “It cannot be operated in a way that meets the requirements for global cost efficiency and for flexible capacity growth. Therefore we have to make this tough decision.”

Source: Associated Press

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 Print Posted by Amir Karimuddin on January 16th, 2008