Nokia restructures Salo plant to focus on smartphones

Nokia has announced plans to restructure its Salo manufacturing plant in Finland to ensure production is focused fully on the high-value smartphone market.

Nokia has announced plans to restructure its Salo manufacturing plant in Finland to ensure production is focused fully on the high-value smartphone market.

According to Nokia, 52 million of the 329 million mobile phones sold last year were smartphones, up 12% on 2008.

The company said the restructuring, which will affect 285 of 2,200 employees, was prompted by diverse customer requirements and Nokia's transformation towards a "solution-driven offering".

"The plans will result in the introduction of new and highly specialised manufacturing methods and also entail changes to personnel at the facility," the company said.

Nokia has 10 manufacturing sites in nine countries, including the UK, Brazil, China, Finland, Hungary, India, Mexico, Romania and South Korea.

Juha Putkiranta, senior vice-president of markets at Nokia, said the Salo plant is a crucial part of Nokia's global manufacturing network.

"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," he said.

Nokia also announced that it plans to stop the ongoing rotational temporary lay-offs at the plant by the end of June 2010.

Earlier this month, the company reported a 6% over decrease in revenue for the fourth quarter 2009, and a 15% decline in Europe, while for fiscal 2009, Nokia reported a 93% decline in net income and a decline in revenue of 19%.

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