Stiri	Stiri afaceri	Stiri companii	Evenimente de afaceri

Nokia factory in Jucu, Romania to close, all employees to be laid off

Nokia's factory in Jucu, Romania closes in 2011, Nokia confirmed in a press release on Thursday. The Nokia press release says the closure in Jucu, Cluj county will affect some 2,200 people and says the measure was due to the need to optimize production processes, with priority given to factories in Asia.

Nokia inaugurated the factory in Jucu, Cluj county in NW Romania in September 2008, following a 60 mln. euro investment. At the moment, officials said they eyed a 3,500-strong workforce when produced would reach maximum capacity. Within three months after its opening, the Nokia factory dropped a limited number of employees, due to the crisis and a drop in demand.

Nokia changed its top management in spring, naming Stephen Elop from Microsoft as CEO. He admitted Nokia was in crisis and had lost a massive share on the mobile phone market - from over 50% four years ago to some 25% now. The company in April announced a restructuring plan involving some 4,000 employees worldwide, including 120 from Romania.

Nokia Romania's business in 2010 amounted to 6.76 million lei, with a net profit of about 181 million lei. The company is also taking a closer look at its plants in Mexico, Finland and Hungary.

Romania's Government has called a meeting for Thursday evening to discuss mobile phone manufacturer Nokia's decision to close its plant in Jucu, Cluj county.A Nokia delegation, led by general manager Risto Meskus, met with Prime Minister Emil Boc earlier in the day.

Nokia's plant in Jucu, Romania, will stay open until the end of the year and employees will continue to receive wages until the end of March 2012, employees were told Thursday after the Finnish cell-phone maker announced it was shutting down its Romanian operations.Laid off staff will also receive severance payments but the company has not yet given any details about its planned benefit packages.

The local employment agency office in Cluj said the plant's shutdown will raise the county's unemployment rate, but it is not expected to exceed 4% from the current 3.3%.Jucu mayor Dorel Pojar said the local Nokia plant generated several million lei in taxes to the local budget.

The Cluj county prefect summoned an urgent meeting with the mayor in Jucu, officials of the local employment agency and of the local labor inspectorate to discuss the consequences of the shutdown.

Sursa: http://www.actmedia.eu

Tags: nokia local employees romania factory euro

Articole similare