Feeds

Outrage over Nokia factory closure

Connecting people?

Designing a Defense for Mobile Applications

German politicians will investigate whether Nokia took unfair advantage of state and EU subsidies after it announced the closure of its handset assembly plant in Bochum in North Rhine-Westphalia. Nokia employed more than 2,300 people there in exchange for EU subsidies.

Nokia said production of mobile devices in Germany was no longer feasible due to market changes and requirements for cost-effectiveness and that most of the work will shift to a new plant in Romania.

German politicians now believe Nokia already knew it was going to close the doors on its plant in Bochum and relocate when the required period of retention ran out late in 2006. The decision to build a new plant in Romania was made only several months later.

German Economy Minister Hartmut Schauerte wants to know whether that decision was somehow supported financially by European structural funds. For its Bochum plant Nokia received €60m in subsidies from the EU and another €28m from the federal government.

European Commission president Jose Manuel Barroso denied any arrangements, and defended Nokia's decision. "If you can move production from Finland to Germany, you can also relocate from Germany to Romania."

Employees at the Bochum factory say they feel betrayed by Nokia's decision. Leaders of trade union IG Metall believed the factory still made profits and that Germany's high labour costs made up only five per cent of production expenses.

Reacting yesterday, State Social Democratic Party chairman Kurt Beck questioned the validity of Nokia's famous "Connecting People" slogan. "The company is breaking societies," Beck said in a letter. ®

HP ProLiant Gen8: Integrated lifecycle automation

More from The Register

next story
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
What FTC lawsuit? T-Mobile US touts 10GB, $100 family-of-4 plan
Folks 'could use that money for more important things' says CEO Legere
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
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.
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.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.