Nokia's India plant winds up production

Dylan Bushell-Embling
04 Nov 2014

Nokia's handset manufacturing facility in India has wound up production, as a consequence of Microsoft's acquisition of Nokia's devices business.

The facility ceased production over the weekend after Microsoft terminated the devices purchase agreement with the facility, NDTVreported.

Microsoft was prevented from acquiring the Chennai facility as part of its €5.44 billion ($6.79 billion) acquisition of Nokia's device business, which closed in April.

Tax disputes surrounding the facility and a labor dispute with the factory's remaining 1,100 workers led to its exclusion from the final transaction.

In a statement to NDTV, a spokesperson for Nokia India said the company has agreed with labor unions on a financial severance package for the plant's workers.

Nokia's Chennai factory has been operating since 2006. At its peak it employed around 8,000 workers and was producing around 13 million handsets per month.

The assets have been frozen as a result of the tax disputes, so the plant cannot be sold until the conflict has been resolved.

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