Nokia to shut down factory in India on November 1 after Microsoft cancels purchasing deal
Nokia will shut down operations at its Sriperumbudur plant near Chennai from November 1 after Microsoft terminated its purchase agreement with the facility. In a statement, Nokia had this to say:
The facility was not included in the sale of Nokia's handset unit to Microsoft due to tax litigation from the Indian government. The Tamil Nadu government initially levied a Rs. 2,400 crore fine on Nokia for selling products destined for international markets in India, and then the Supreme Court decreed that Nokia could continue operations if it deposited Rs 3,500 ($571 million) crores in escrow before the transfer to Microsoft. As a consequence, Nokia entered into a transitional services agreement with Microsoft to address immediate production needs.
The factory was one of the largest facilities for Nokia, and accounted for the production of over 800 million handsets and employed a staff of 8,000 full-time workers and 25,000 ancillary workers.
Source: Times of India
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Harish Jonnalagadda is a Senior Editor overseeing Asia for Android Central, Windows Central's sister site. When not reviewing phones, he's testing PC hardware, including video cards, motherboards, gaming accessories, and keyboards.
is like 12.36%+14.5% on every product manufactured. If the goods manufactured are exported then no such duty shall have to be paid.
Such a bad call. There are other places European companies can go to manufacture their goods. Who will lend them money to build a factory in India now?
I like Nokia build. However, if the factory and equipment go bye bye, MS may come up with a different design.
Yes, MS has other locations via Nokia, but this was the largest facility.
How does losing a factory have any influence in the design of future devices?
Work of closing is going on here.
I mean can the patents really be worth that much?
8k full time workers..ohh man what the indian govt did??
We has friendly tax for foreign investor :D
As for moving the production to Europe: As much as I would applaud it, it simply wouldn't be cost efficient for Microsoft to do so. Would love it if their phones were produced in Finland though, but that's just me being sentimental.