Nokia to set up mobile plant in Chennai

By siliconindia   |   Wednesday, 06 April 2005, 19:30 IST
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CHENNAI:The world’s biggest mobile phone maker Nokia today announced that it would set up a manufacturing facility for mobile devices at Chennai with an estimated investment of $100-150 million. The manufacturing unit in Chennai will be Nokia's tenth mobile device production facility globally. "Establishing a new factory in India is an important step in the continuous development of our global manufacturing network. We selected Chennai to be the location for the factory thanks to the availability of skilled labor, friendly business environment, support from the state government, good logistics connections and overall cost-efficiency," said Pekka Ala-Pietilä, President, Nokia. The construction work at the site of the manufacturing unit will start in April and production is expected to begin in the first half of 2006. Nokia foresees ramping up the factory gradually and the work force reaching approximately 2,000 employees when production is full scale. Mobile penetration in Asia Pacific is expected to be a major contributor to the global mobile subscriber base surpassing the two billion mark by the end of 2005. Therefore, India which is set at the heart of the region where mobile communications is growing rapidly was a natural location of choice for the new production facility.