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| NOKIA MADE IN ROMANIA 11/02/2008 |
| (2008-02-11) |
| Last updated: 2008-02-12 13:40 EET |
Finnish conglomerate Nokia, the world’s mobile telephony leader, on Monday inaugurated its first assembly line in Romania, on the premises of a factory nearby Cluj (in western Romania). This is actually the first step ahead of the official inauguration of the investment worth 60 million Euro. Nokia officials said the mobile phones made in Jucu would target markets in Europe, the Middle East and Africa. For a start, the activity will ensured by 200 employees but their number is likely to reach as many as 1,200 by the end of the year.
These people will earn a gross monthly income of 800 RON (about 210 Euro), and will be entitled to a monthly food stubs package and a daily free lunch. The employees’ salary may not be very high, yet the Finnish investors’ arrival will definitely change the lives of the people in the region. Nokia’s settling in Romania will also bring along several providers of spare and secondary parts, and the latter’s’ investments will reach at least 120 million Euro.
However specialists say the locals have cracked it in terms of real estate value: the region’s land, one square meter of which was sold for 2 Euro two years ago, is now priced for a hefty 120 Euro per square meter. Local authorities disclosed that the agreement signed with the Finnish firm spans 30 years, a period during which the investor will be exempt of real estate tax. Nokia’s decision to relocate its factory from Bochum, Germany to Romania was made on the grounds that costs in Germany were too high, tax and salary wise.
That sparked disapproval and a series of protests in Germany, as well as a heated debate in the European Parliament. The German Euro-parliamentarians accused the Finnish firm of having used European money for their new factory in Romania. The European Commission President, Jose Manuel Durrao Baroso, himself denied the accusations and said Nokia’s decision to relocate in no way breaches community legislation and that “just as the investment could go from Finland to Germany it may as well go from Germany to Romania.
”Ahead of the factory’s inauguration in Jucu, several thousands of Germans in Bochum made a human chain to protest against the transfer of production to Romania. The decision left 2,300 people jobless and is likely to jeopardize the contracts of another 2,000 with partner firms. The regional government has already started looking for solutions to offer employees the possibility of reconversion so that they can find new jobs.
(Andreea Bojoi)
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2025-04-03
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