Nokia Closes Third Factory in China This Year

22 Dec

Chinese media reports suggested that Nokia had recently closed its plant in Suzhou, after shutting down the factories in Beijing and Dongguan earlier this year.

Some employees were protesting outside Nokia’s Suzhou plant in early December to voice their anger over the plant’s sudden closure and their discontent with the severance packages.

In response to the closure, Nokia said in a statement that industry focus has shifted from hardware manufacturing to research and development in the past few years. The change in the market affected the operations of the Suzhou plant. Nokia said that as a global company, it has the responsibility to maintain cost control and it was for that reason that the company had to announce the cease of operations of the Suzhou plant in 2015.

Nokia opened its facility at the Suzhou Industrial Park in 1998 and was one of the first companies to set up locations in the park. The plant mainly produced telecommunication equipment and had eight surface mount technology assembly lines. The Nokia plant also had 64 manual assembly lines and over 100 sets of testing equipment.

There have been several reports of factory closures and relocations in China. Such movements may become a trend as businesses seek survival strategies.