Finland's other mobile phone maker needs more cash. Or else

Benefon, Finland's other mobile phone maker, is negotiating for an immediate cash injection of €20m. Its survival depends upon a "succesful financing solution".

If it gets the money, it intends to "re-direct the Company more into the provision of services and service solutions".

Benefon's announcement, published on its web site yesterday (Feb 11), has prompted the Helsinki Stock Exchange to place the company on its surveillance list.

Benefon makes specialist handsets for companies and service organisations. It describes itself as the "world's leading provider of GSM and GPS based mobile telematics instruments". Here is a product sheet.

But where are the customers? In its report for FY 2002, Benefon says:

The sales of GSM products Benefon Twin, Benefon Twin Dual SIM and Benefon Q as well as of the NMT 450 phone Benefon Exion were very low in the final quarter causing a significant drop of the total sales in the final quarter. Even though the down-ward trend of the NMT 450-market got stronger, the NMT 450 production is planned to be continued as long as there is reasonable demand.. ®