Nokia’s manufacturing plant in Chennai, India will not change hands with Microsoft acquisition

Nokia’s manufacturing plant in Chennai, India will not change hands with Microsoft acquisition
Tomorrow will mark the beginning and the end of an era in technology. The beginning is marked by Microsoft becoming a first-party manufacturer of actual products, all the way down to sourcing many of the raw materials used in the process.  The end is marked by the fact that Nokia, for the first time in decades, will no longer be a manufacturer of mobile phones.

Roughly half of the 30,000+ employees that will be added to Microsoft’s payroll will be involved in the physical act of making stuff, another large portion involved in the global distribution chain of those finished products.

Somewhere around 4,500 people in Finland will see the “payer” information on their paycheck switch to Microsoft and a somewhat smaller number of people are packing their belongings in preparations for a big move to Redmond, Washington.

What will not be happening is roughly 8,000 Nokia employees in India, along with their factory in Chennai, which is at the center of a huge tax dispute with the Indian government, will not be joining their fellows on the Microsoft bandwagon as the asset will not be changing hands on April 25th.

Nokia will continue to operate the facility as a contract manufacturing resource for Microsoft after the deal closes. The orphaned facility is actually one of the largest factories in the world, but production lines have been halved, and Nokia offered its workers there an early retirement scheme, a sign that production at that plant is not likely to go up anytime soon, if ever.

Nokia does not want to operate the plant on a contract basis with Microsoft for the long term. If the tax dispute is not settled over the next year, it is a very real possibility that the plant will close.

source: Economic Times



1. Sesameopen

Posts: 109; Member since: Aug 02, 2013


12. Johnnokia

Posts: 1158; Member since: May 27, 2012

Probably this is good for Nokia when it wants to reproduce cellphones in 2016

16. fouadqr

Posts: 326; Member since: Nov 21, 2012

Cell phones or Smartphones ?

17. Ashoaib

Posts: 3298; Member since: Nov 15, 2013

Better for nokia to close down this plant and end his miseries

2. Liveitup

Posts: 1798; Member since: Jan 07, 2014

How is that funny?, somebody hates competition.

3. sgodsell

Posts: 7437; Member since: Mar 16, 2013

There is talks from Microsoft already to rebrand the Nokia phones. Microsoft is looking to drop or change the Nokia name. As if this is going to help Microsoft and WP. I think Microsoft would have better results by shooting darts at board with every possible decision to make.

5. sip1995

Posts: 1771; Member since: Feb 07, 2014

Yeah right, that's why Microsoft bought the rights to use "Nokia" name in the future phones.....for 10 YEARS

6. Damo579

Posts: 265; Member since: May 18, 2013

Only for the asha phones. The Lumia line doesn't get to keep the Nokia name.

7. sip1995

Posts: 1771; Member since: Feb 07, 2014

That sounds stupid, I believe we're gonna see another Nokia world event this year.

8. papss unregistered

What does your comment have to do with his? Or did you just drink you hateraid? Fandroids = pathetic

4. Liveitup

Posts: 1798; Member since: Jan 07, 2014

Regardless of what Microsoft does with Nokia the bigger decision in WP future does not lie sole with Microsoft or Nokia it lies with the fact that WP is now license free so it no longer cost for OEM's to make Windows Phone, that puts it in direct competition with Android and that is a good thing for consumers.

9. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Why are WP fan so defensive? Others are just expressing views. Microsoft business modal has indeed change to one like Apple inc. Doing both software and hardware in house. The next walled garden in construction.

10. express77 unregistered

I think MS buying Nokia is not so good for MS. OEMs will not like to compete with the OS maker and if OS maker can make such quality hardwares(nokia hardwares), then OEMs will have difficulties to compete and try to leave that OS. Same happened with google and moto.

11. corporateJP

Posts: 2458; Member since: Nov 28, 2009

A Lumia isn't a Lumia unless it's a Nokia. R.I.P. Nokia D&S. Microsoft can't rewrite history and the fact that you were the GREATEST cellular phone manufacturer EVER. Once my Nokia is dead, I'm a free agent again... On a side note, a big "congratulations" is in order for the Indian government. Not sure how unemployment benefits (if at all) work in your country, however, you lost about 8,000 taxpayers and a big fish corporation. Dispute or not, money owed or not, you guys are a bunch of greedy, corrupt dumbasses. Thoughts and prayers are with those hard working folks.

15. mousesports

Posts: 286; Member since: Feb 28, 2013

my last phone will be Lumia 930 .. then i will gonna w8 for nokia to comes back with a new phone after 2016 !

23. threed61

Posts: 259; Member since: May 27, 2011

Microsoft owns, but the same people creating, designing and building new devices, why stop buying them?

13. Liveitup

Posts: 1798; Member since: Jan 07, 2014

@joey_sfb what you call defensive I call perspective' its one view point vs another. Even though Microsoft now does hardware and software their model is not exactly like Apple's , the difference is Microsoft has other OEM's producing WP handsets, that is a big difference and should be noted, in that essence its just like Android model. You say it as if a closed OS is a bad thing as opposed to opened source , WP 8.1 has a lot of features including arguably the mist versatile and best home screen of any platform, if being closes means I can have a premium, smooth, secure, intuitively and visually pleasing OS experience that is good enough for myself. Android may be flexible but look at it these days as well as its OEM's they are becoming simplier with less bloatware besides being opened sources has its draw backs like being prone to virus like recently when 30,000 customers downloaded a dangerous virus disguised as an anti virus. Its a trade off one is not necessarily better than the other just different.

14. Liveitup

Posts: 1798; Member since: Jan 07, 2014

The same people who made the past Lumias will be making the future Lumias.All 32,000 of them, so in that sense Microsoft is not rewriting history it in fact just got major boost from those same individuals who made Nokia the greatest cell manufacturer. Think of it this way Nokias employees now have more money at their disposal to show of their greatness.

22. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Not buying what your selling, it's just not the same. I'll buy a Jolla before I buy another Windows Phone. Former Nokia people run Jolla. Former Nokia people that work for Microsoft now will be shackled and they still have to get everything done there with Elop's blessing. Nokia D&S is dead now. Game over. I really hope they make a comeback in a few years, but only time will tell.

18. aries.phills

Posts: 161; Member since: May 17, 2011

Remember when Nokia was the mobile phone king after they dethroned motorola. They reigned for a very long time across the continent like the Roman Empire. Unfortunately, their strategy department didn't make wise and hasty decisions when the trend was changing and they where caught pants down like the ancient dinosaurs. Further steps to quell their downfall was not sufficient enough to reverse the motion. Down Down Nokia Goes! Once the Mighty! Reign No More! The Tale of Nokia.

20. Ashoaib

Posts: 3298; Member since: Nov 15, 2013

True story... no doubt in it... people at nokia were sleeping during the time of their reign while samsung and apple were fully awake and putting their best efforts to take the throne... now we can see where is the old king and who are the new kings

19. Altair

Posts: 367; Member since: Feb 02, 2012

I prefer Nokia closes this factory as soon as possible. India and its greedy goverment should learn NOT to be greedy. This has already gave a sign to other international investors to NOT invest any money in India. Leaded by corrupted and greedy goverment will always cause problems. Sad thing is, that workers at that factory will suffer. It is really strange, that they don't increase a bigger issue against goverment about this.

21. Ashoaib

Posts: 3298; Member since: Nov 15, 2013

No, its not about india and its not about that the govrnment is greedy... government has a right to ask to pay taxes... what it is actually all about that nokia is bleeding money and in a miserable condition and it is not in it's interest to pay that money and make theirself even bleed more. So they should abandon this plant without paying any money and use saved amount to build a new plant in china. By this way they can atleast keep their footings on the ground, otherwise keeping this plant n being stuck in a tax dispute is not going to help them

25. Teja171 unregistered

Technically it is said that " Government of the people, by the people for the people. " But here in India it is " Government of themselves by themselves for themselves " F**k them.

24. NokiaFTW

Posts: 2072; Member since: Oct 24, 2012

Every and I mean every single company has its highest peak and its lowest. Nokia once ruled the world, now they don't. Today Samsung are at the top, who knows what happens in a few years time.

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