The once beloved Finnish giant Nokia has announced that it'll be shutting down its Sriperumbudur plant in Chennai, India. Nokia will halt the manufacturing of handsets on the plant starting November 1.
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The main reason behind the shutdown is the fact that Microsoft has terminated the manufacturing solutions from your factory. Microsoft acquired Nokia’s products and solutions division for $7.2 billion and also the deal was finished in April earlier this yr. The Chennai plant could not be transferred to Microsoft on account of Nokia’s tax dispute with all the Indian government.
Nokia stated inside a statement, “Microsoft has informed Nokia that it will be terminating the manufacturing services defined while in the agreement with effect from 1 November 2014. In absence of additional orders from Microsoft, Nokia will suspend handset production on the Sriperumbudur facility from 1st November.”
The Nokia Chennai plant was up and running in January 2006 and also the handsets manufactured in the factory have been exported to Middle East and Africa, Asia, Australia and New Zealand. As of March, the plant had 6,600 workers, out of which 5,000 took the Voluntary Retirement Scheme offered by Nokia. The Finnish giant added, “As a accountable employer, Nokia is currently evaluating options to lessen the impact on existing workers at the manufacturing facility. It'll share more details when particulars happen to be finalized.” Via
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