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Nokia announced that it will set up a manufacturing facility for mobile devices in the county of Cluj in Romania. Nokia anticipates investing an estimated EUR 60 million in the Cluj plant, which will be the company's 11th mobile device production facility globally.
The decision to establish a new factory in Romania is a reflection of Nokia's strong volume growth globally, as well as the increasing demand for mobile devices in Europe, the Middle East and Africa. Nokia selected Cluj as the location for the plant because of the county's availability of skilled labour, its good inbound and outbound logistics connections, its overall efficiency, and the long industrial tradition in the area.
The Memorandum of Understanding was signed today in Romania's capital, Bucharest. At the signing, Raimo Puntala, Senior Vice President for Nokia's Operations and Logistics, said: 'As the global market leader for mobile devices, Nokia is committed to ensuring good product availability and smooth deliveries to important markets in Europe, the Middle East and Africa.'
Nokia's new facility in Cluj is located about 400 kilometers north-west of Bucharest. The construction work at Cluj will start in spring 2007 and production is expected to begin in the first half of 2008. Nokia foresees ramping up the factory gradually and will recruit approximately 500 employees there by the end of 2007. As part of the plans, Nokia is looking to establish an industrial village in the area, enabling a number of key suppliers and partners to locate their operations there.
Nokia continuously develops its global manufacturing network to increase competitiveness and provide excellent logistics services for its customers. In 2006, the company completed expansions at its Reynosa plant in Mexico and its Dongguan plant in China, and ramped up production at the Chennai plant in India. In Europe, Nokia already has production facilities in Bochum in Germany, Komárom in Hungary and Salo in Finland.