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Nokia to set up a new mobile device fac­tory in Romania

Espoo, Finland — Nokia today anno­un­ced that it will set up a manu­fac­tu­ring faci­lity for mobile devi­ces in the county of Cluj in Romania. Nokia anti­ci­pa­tes inves­ting an esti­ma­ted EUR 60 mil­lion in the Cluj plant, which will be the company’s 11^th mobile device pro­duc­tion faci­lity globally.

The deci­sion to esta­blish a new fac­tory in Romania is a reflec­tion of Nokia’s strong volume growth glo­ba­lly, as well as the increa­sing demand for mobile devi­ces in Europe, the Middle East and Africa. Nokia selec­ted Cluj as the loca­tion for the plant beca­use of the county’s avai­la­bi­lity of ski­l­led labour, its good inbo­und and outbo­und logis­tics con­nec­tions, its ove­rall effi­ciency, and the long indus­trial tra­di­tion in the area.

The Memorandum of Understanding was sig­ned today in Romania’s capi­tal, Bucharest. At the sig­ning, Raimo Puntala, Senior Vice President for Nokia’s Operations and Logistics, said: ‘As the glo­bal mar­ket lea­der for mobile devi­ces, Nokia is com­mit­ted to ensu­ring good pro­duct avai­la­bi­lity and smo­oth deli­ve­ries to impor­tant mar­kets in Europe, the Middle East and Africa.’

Nokia’s new faci­lity in Cluj is loca­ted about 400 kilo­me­ters north-​​west of Bucharest. The con­struc­tion work at Cluj will start in spring 2007 and pro­duc­tion is expec­ted to begin in the first half of 2008. Nokia fore­sees ram­ping up the fac­tory gra­du­a­lly and will recruit appro­xi­ma­tely 500 employees there by the end of 2007. As part of the plans, Nokia is loo­king to esta­blish an indus­trial vil­lage in the area, ena­bling a num­ber of key suppli­ers and par­t­ners to locate their ope­ra­tions there.

Nokia con­ti­nu­o­u­sly deve­lops its glo­bal manu­fac­tu­ring network to increase com­pe­ti­ti­ve­ness and pro­vide exce­l­lent logis­tics ser­vi­ces for its cus­to­mers. In 2006, the com­pany com­ple­ted expansions at its Reynosa plant in Mexico and its Dongguan plant in China, and ram­ped up pro­duc­tion at the Chennai plant in India. In Europe, Nokia already has pro­duc­tion faci­li­ties in Bochum in Germany, Komárom in Hungary and Salo in Finland.