14 DAY TRIAL // Nokia announced today it has started cell phone production on its new factory in Cluj, Romania, marking an important step in the company's future evolution in Eastern Europe. The Cluj plant is Nokia's 11th such production facility in the world and it was first announced back in March 2007. The construction began in July 2007 and now everything is ready for handset production.
"We are pleased by the fact that people from Romania who share our vision want to come and work for Nokia; new employees join our team every week," said Juha Putkiranta, Senior Vice President, Demand Supply Network Management, Nokia. "The Nokia plant from Cluj will become an important part of our global plant network and will operate with the same processes and at the same quality standards found in all Nokia factories."
During the ceremony that marked the Cluj factory opening, Juha Putkiranta called the Ambassador of Finland in Romania, Mr. Tapio Saarela, from the first Nokia phone made in Romania, an entry-level 1200 model.
Nokia will employ about 500 people in the first phase of the production at the Cluj factory, people specially trained in Romania and abroad. Until the end of 2009, when the production will reach full capacity, 3,500 people are expected to work there.
The Cluj plant opening comes after Nokia announced it will close its factory located in Bochum, Germany, one of the company's oldest production facility, opened in 1987. The production from the German factory is transferred to the new Cluj and Komarom (Hungary) plants, where production costs will be about ten times lower.
The total amount of money invested in the Cluj factory is somewhere around 60 million USD, but the Finnish company will surely recover this investment in a short time, as its 40% market share makes the company the largest handset producer in the world.