Nokia Plans to Develop Operating Mode of Salo Plant to Ensure Production Focus on Growing Smartphone Market

By Calvin Azuri

TMCnet Contributor

 

Plans are afoot to develop the operating mode of Nokia’s (News - Alert) Salo plant to ensure production is focused on the high-value smartphone market. A pioneer in mobile telecommunications, Nokia is a leading provider of mobile devices.



The important drivers for the new operating mode in the 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 are expected to result in the introduction of highly specialized manufacturing methods and also entail changes to personnel at the facility.

It is expected that the planned new focus for the Salo mobile device manufacturing facility will affect a maximum of 285 employees involved in production and in related support functions at Salo. Nokia's Salo facility employs approximately 2,200 people at present.


Nokia will support alternative solutions, such as finding new positions at Nokia for as many employees as possible. Nokia will also begin consultations with employee representatives about these plans. The consultations will also include discussions about voluntary severance packages. In addition, Nokia is planning to stop ongoing rotational temporary lay-offs at the Salo plant by the end of June 2010.

According to Juha Putkiranta, senior vice president for markets at Nokia, the Salo plant in Finland is a crucial part of Nokia's global manufacturing network. As plans involving changes to employees are always painful, they are set in motion only after thorough consideration. Putkiranta added that the planned new focus for Salo will ensure the plant's future competitiveness and its special role as one best suited to the production of high value mobile devices. Nokia has a global mobile device manufacturing network with ten manufacturing sites in nine countries.

The world's leading mobile phone supplier, Nokia is also a leading supplier of mobile and fixed telecom networks including related customer services. Nokia also supplies solutions and products for fixed and wireless datacom, as well as multimedia terminals and computer monitors. At present, Nokia is adjusting its business operations and cost base in accordance with market demand and is also seeking savings in operational expenses by looking at all areas and activities across Devices & Services and global support functions.