Salo Plant Operating Mode Development Plan From Nokia

Nokia is
planning to develop the operating mode of its Salo plant to ensure
production
is focused fully on the high-value smartphone market, especially in Europe.
The key drivers for a new operating mode in Salo plant are diverse
customer
requirements, faster deliveries in high-end mobile device manufacturing
and
the company’s transformation towards a solution-driven offering. The
plans
will result in the introduction of new and highly specialized
manufacturing
methods and also entail changes to personnel at the facility.

The planned new focus for Salo is expected to affect a maximum of
285
employees involved in production and in related support functions at
Salo.
Today, Nokia’s Salo facility employs approximately 2 200 people.

Nokia will support alternative solutions, such as finding new
positions
at Nokia for as many employees as possible. Nokia will begin
consultations
with employee representatives about these plans, including discussions
about
voluntary severance packages. Additionally, Nokia plans to stop
currently
ongoing rotational temporary lay-offs at the Salo plant by the end of June
2010
.

"Salo is a crucial part of Nokia’s global manufacturing network.
Plans
involving changes to employees are always painful, and they are set in
motion
only after thorough consideration. However, with these plans our aim is
to
ensure the plant’s future competitiveness and its special role as one
best
suited to the production of high value mobile devices," says Juha
Putkiranta,
Senior Vice President, Markets, Nokia.

Nokia has a strong global mobile device manufacturing network
with ten
manufacturing sites in nine countries – Brazil,
China, Finland,
Hungary,
India, Mexico,
Romania, South
Korea
and the United Kingdom.

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