Feeds

Germany to Nokia: Give us back our subsidies

€41m plus €18m interest, thanks

Top 5 reasons to deploy VMware with Tegile

Germany's western state of North-Rhine Westphalia (NRW) has told Nokia to repay all its subsidies plus interest by 31 March or face legal action.

The German state paid €41m in aid for Nokia's mobile phone factory in Bochum, under the condition that at least 2,800 jobs would be created. However, the Finnish mobile giant is to close its plant by 30 June and move its operation to Romania.

The closure of the plant infuriated many German unions and politicians and fuelled a strong anti-Nokia and anti-Finnish sentiment in the country with many consumers turning their backs on Nokia products.

But Nokia says it has no choice. Labour and non-wage labour costs in Germany are not competitive enough for the mass-production of Nokia products. In Romania, the average monthly salaries will be about one-tenth of the average wage of workers at Bochum.

Nokia employed more than 2,300 people in Bochum in exchange for EU and state subsidies. The company says it fulfilled all the necessary conditions for the subsidies, but NRW believes Nokia fell short of the required numbers by 200 to 400 posts between 2002 and 2005.

On Tuesday, the state government formally demanded that the company pay back €41m in subsidies, plus €18m in interest.

The two sides are expected to negotiate in the next few days. State Finance Minister Christa Thoben has punted the idea of opening up a technology business park with Nokia as the main investor.

Nokia received more bad news today after components supplier Texas Instruments Inc warned of deteriorating conditions in the wireless industry. Nokia shares dropped below €20. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.