Nokia to set up tenth mobile phone factory in Chennai, India

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Nokia announced on Wednesday that its tenth mobile telephone handset factory will be set up in India’s southern Tamil Nadu state in the city of Chennai, formerly known as Madras. The company expects to invest EUR 80 - 120 million in the new facility.
      Last December’s tsunami caused destruction in the city as negotiations on the location of the Indian factory were taking place. However, Nokia says that the disaster had no bearing on the discussions.
      Nokia Corporation President Pekka Ala-Pietilä said in a press release that the company chose Chennai because the city has a knowledgeable labour force available. Also, Elcoteq, a major Nokia subcontractor, has a plant of its own in nearby Bangalore.
      In addition, Chennai has good transport facilities, a business-friendly environment, and the support of local officials. Tamil Nadu’s Chief Minister, Jayalalitha, is known as one of India’s most colourful politicians. Before his political career, he was a famous movie star.
      In 2001 Jayalalitha was imprisoned for a couple of months for corruption. He made a political comeback after the conviction was overturned.
     
Nokia hopes to have the new factory operational in the first half of 2006. It is to have a work force of about 2,000 people.
      India is seen to have a growing domestic market for mobile telephones. The country has about 52 million cell phone users, and the number is increasing by about two million a month. Nokia is already the clear leader on the Indian mobile phone handset market.
      Nokia has production facilities in a total of eight countries: Finland, Germany, Hungary, the United States, South Korea, Mexico, Brazil, as well as two plants in China.


Links:
  Nokia press release: Nokia selects Chennai for manufacturing mobile devices in India

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