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Nokia plans to develop its operations at the Salo plant in Finland to ensure production is focused fully on the high-value smartphone market, especially in Europe, and it also intends to further increase speed and efficiency of its device production. In the process of this development it is expected that 285 employees effected. Juha Putkiranta, Senior Vice President of Markets, Nokia, stated that, “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.”

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.

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.

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