Nokia to reimburse German state to end plant closure row
Nokia will reimburse a German state over 1.3 million euros (two million dollars) to resolve a plant closure dispute that has cost the mobile phone giant tens of millions already, officials said Saturday.
By Agencies |
BERLIN: Nokia will reimburse a German state over 1.3 million euros (two million dollars) to resolve a plant closure dispute that has cost the mobile phone giant tens of millions already, officials said Saturday.
Nokia will pay out the sum plus interest to North Rhine-Westphalia after announcing earlier this year it was closing down its last plant in Germany in the town of Bochum.
According to the economic weekly WirtschaftsWoche, the German research ministry had given Nokia four million euros in grants to finance its factory in Bochum, which is in the heart of the industrial Ruhr basin.
The fruit of Nokia's research should have been exploited by Germany but will not be after the Finnish phone maker closed Bochum, according to the ministry.
To try to settle the dispute, Nokia had already started a 20-million-euro "Growth for Bochum" foundation providing capital for entrepreneurs in the mobile telephone and information technology sectors.
Nokia announced in January it would shift production from Bochum to Romania due to lower labour costs.
The firm's decision sparked massive protests in Germany, where 2,300 jobs were expected to be lost and local sub-contractors were also expected to be hit.
Nokia will pay out the sum plus interest to North Rhine-Westphalia after announcing earlier this year it was closing down its last plant in Germany in the town of Bochum.
According to the economic weekly WirtschaftsWoche, the German research ministry had given Nokia four million euros in grants to finance its factory in Bochum, which is in the heart of the industrial Ruhr basin.
The fruit of Nokia's research should have been exploited by Germany but will not be after the Finnish phone maker closed Bochum, according to the ministry.
To try to settle the dispute, Nokia had already started a 20-million-euro "Growth for Bochum" foundation providing capital for entrepreneurs in the mobile telephone and information technology sectors.
Nokia announced in January it would shift production from Bochum to Romania due to lower labour costs.
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The firm's decision sparked massive protests in Germany, where 2,300 jobs were expected to be lost and local sub-contractors were also expected to be hit.
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