Nokia: Inexpensive labor is no longer everything

The production unit has been operating since February, but was officially inaugurated yesterday.

“We have very dedicated employees in Romania. The Cluj-based operations have become a part of our global production and distribution network. Nokia is the only mobile device producer to own factories in nine countries,” the company’s Executive Vice President, Anssi Vanjoki, said.

Nokia is currently producing 17 phones per second globally. Last year, it manufactured 450 million devices.

The company will keep investing in Romania, based on local market demand. “Globally, a company like Nokia can no longer rely on finding the least expensive labor force. We must be careful of production costs, the distribution network, and transportation costs for products and components,” Vanjoki added.

Nokia has invested €60 million so far in its Jucu-based factory, which has 1,600 employees. It is estimated that once the unit reaches its maximum production capacity in late 2009 it will employ 3,500 employees.