Feeds

Germany to Nokia: Give us back our subsidies

€41m plus €18m interest, thanks

Beginner's guide to SSL certificates

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.