April 7, 2005

Nokia has decided on a new location for its plant in India.

The city of Chennai was chosen as the site for Nokia's 10th mobile device manufacturing facility for its skilled labor, business environment, overall cost-efficiency and existing support from the state government.

Investment in the new plant will be between $100 million and $150 million. The new facility is expected to go online in the first half of 2006. Nokia estimates the facility will employ roughly 2,000 people when it is operating at full capacity.

Nokia has said having a manufacturing facility in India will better position Nokia to serve the booming Asia-Pacific wireless market.

Nokia is not a newcomer to India; the company already has sales, marketing, customer care and R&D sites up and running there.

The company also has worked to establish itself there by landing various network equipment contracts, including a recent GSM deal with Hutchison India.

Source: Wireless Week