Nokia plans changes to its manufacturing operations to increase efficiency in smartphone production

Here’s some news straight from Nokia’s press release yesterday that I didn’t get around being at the hospital all day. Nokia’s factories at Komarom, Hungary, Reynosa, Mexico and Salo, Finland are to focus on smartphone product customisation. Device assembly is shiftying to Asia. These are cost cutting measures so Nokia production is closer to their suppliers. This apparently will allow them to introduce innovations more quickly allowing Nokia, as we all hope, to be more competitive.

Nokia expects a reduction in around 4000 personnel, again, huge cost cutting measures as Nokia opts for less expensive labour. Hopefully that will not mean any reduction in quality. Nokia will look to assist those affected with their “comprehensive locally-tailored support program”, which includes assistance finding new jobs locally and financial support.

Espoo, Finland – Nokia has today announced planned changes at its factories in Komarom, Hungary, Reynosa, Mexico and Salo, Finland. The measures follow a review of smartphone manufacturing operations that Nokia announced last September and aim to increase the company’s competitiveness in the diverse global mobile device market.

These three factories are planned to focus on smartphone product customization, serving customers mainly in Europe and the Americas. Device assembly is expected to be transferred to Nokia factories in Asia, where the majority of component suppliers are based.

“With the planned changes, our factories at Komarom, Reynosa and Salo will continue to play an important role serving our smartphone customers. They give us a unique ability to both provide customization and be more responsive to customer needs,” said Niklas Savander, Nokia executive vice president, Markets.

“Shifting device assembly to Asia is targeted at improving our time to market. By working more closely with our suppliers, we believe that we will be able to introduce innovations into the market more quickly and ultimately be more competitive,” said Savander. “We recognize the planned changes are difficult for our employees and we are committed to supporting our personnel and their local communities during the transition.”

As a consequence of the plans, the number of steps in manufacturing and the amount of work carried out at the sites in Komarom, Reynosa and Salo are expected to decrease substantially. The changes are anticipated to impact approximately 4,000 employees in total.

Personnel reductions are planned to be phased through the end of 2012. Nokia will offer a comprehensive locally-tailored support program, including financial support and assistance with local re-employment.

http://press.nokia.com/2012/02/08/nokia-plans-changes-to-its-manufacturing-operations-to-increase-efficiency-in-smartphone-production/

Category: Nokia