Feeds

Nokia shutters German handset factory

2,300 layoffs

Using blade systems to cut costs and sharpen efficiencies

Nokia is shut down its Bochum plant in Germany by mid 2008. The closure will affect at least 2,300 Nokia employees, the company said today.

Veli Sundbäck, executive vice president of Nokia and chairman of the supervisory board of Nokia GmbH, says production of mobile devices in Germany is no longer feasible due to market changes and requirements for cost-effectiveness.

Nokia Werke in Bochum was founded 20 years ago and was one of the firm's major plants outside Finland. The Finnish company will move most of its production capacity to a new plant at Cluj, Romania, and a plant at Komarom, Hungary. The manufacturing operation at Salo, Finland, will continue to make advanced products.

Nokia will sell its automotive components business and research labs to Sasken Technologies, an embedded communications solutions company which employs more than 3,500 people. The automotive business is still profitable.

Nokia's Line Fit Automotive Business supplies car factories with wiring needed for car owners to use their phones hands-free. Nokia started selling car telematics products as early as 1998. The Bochum site became the main hub of R&D activities in Nokia Smart Traffic Products.

The Nokia plant in Bochum is the biggest local employer after Opel. Hannelore Kraft, opposition Leader of the SPD, told German papers it is a black day for the state of Northrhine-Westphalia.

Germany no longer seems to be a profitable place for the production of mobile equipment in general. Last year, Nokia Siemens said it would cut 9,000 jobs - about 15 per cent of its total staff - over the next four years as part of a programme to save the combined company €1.5bn annually by 2010. In Germany alone, 2,900 jobs will have to go. ®

HP ProLiant Gen8: Integrated lifecycle automation

More from The Register

next story
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Microsoft unsheathes cheap Android-killer: Behold, the Lumia 530
Say it with us: I'm King of the Landfill-ill-ill-ill
All those new '5G standards'? Here's the science they rely on
Radio professor tells us how wireless will get faster in the real world
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.