Nokia to shift focus of its mobile phone manufacturing in Germany


Nokia will refocus its mobile phone production processes in Bochum, Germany to further increase customer orientation and efficiency. The Bochum unit will increasingly focus on the final assembly of mobile phones while part of the current board assembly will be shifted to other Nokia facilities and to contract manufacturers. The change will further increase the efficiency of Nokia's demand-supply network and the competitiveness of its mobile phone unit.

As a consequence of the shift, Nokia will start employment negotiations with labour representatives regarding approximately 300 full-time employees in Bochum. The changes are expected to be completed by the end of 2001.

"Our target in the mobile phone industry is to continue leveraging our leading position and to further increase our global market share,' said Anssi Vanjoki, Executive Vice President, Nokia Mobile Phones, Europe & Africa. "In today's business environment, we continuously need to strive to increase our overall competitiveness with all possible means, while at the same time improving our responsiveness to our customers. Significant process improvements sometimes result in the need to take difficult actions with respect to employees.'

Nokia has manufactured mobile phones in the Bochum factory since 1989. It is one of Nokia's 9 manufacturing sites globally. Nokia presently employes around 3,000 people in Bochum, Germany.

Nokia is the world leader in mobile communications. Backed by its experience, innovation, user-friendliness and secure solutions, the company has become the leading supplier of mobile phones and a leading supplier of mobile, fixed and IP networks. By adding mobility to the Internet Nokia creates new opportunities for companies and further enriches the daily lives of people. Nokia is a broadly held company with listings on six major exchanges.

For more information:
Nokia Mobile Phones
Tapio Hedman, Vice President, Communications
Mob. +358 40 516 2396

www.nokia.com