RIP phone production in India as Nokia closes down factory
Months after tax issues snowballed into a major problem that caused the Microsoft/Nokia acquisition to be paused, and at a time, almost scrapped, the Nokia manufacturing plant has been finally shut down. This means that Nokia and Microsoft are left without a factory in India.
As simple as it may sound, no more Microsoft/Nokia phones are going to be produced in India, listen here, there’s more to it. After seeing how the ‘mighty Nokia’ couldn’t stand production taxes in India, potential investors coming to India might have their interest weaned down. The likes of Xiaomi are highly considering making at least one plant in the world’s fastest-growing mobile phone economy but the ripple effects of what happened to Nokia might put them off to some point.
1,100 people were left jobless after the Chennai, India plant was shut down. The Indian government said Nokia owed an amount in the region of $391 million in taxes and ordered the Finnish tech giant to pay a $570 million guarantee before transferring the plant to Microsoft who acquired the phone unit of the company earlier this year. Meanwhile, Nokia is said to have generated $300 million profit from the 8-year-old existence of the factory.
“As announced earlier (October 7), we are stopping handset production at our Chennai plant from tomorrow (November 1) in the absence of orders from our new parent firm (Microsoft), which terminated the mobile purchase agreement,” a Nokia spokesman announced
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