'Locust' Nokia faces up to 80 mln eur compensation claim from German govt UPDATE
FRANKFURT, Jan. 16, 2008 (Thomson Financial delivered by Newstex) -- Nokia (NYSE:NOK) faces a demand from German authorities for up to 80 mln eur compensation following the Finnish handset maker's decision to close a factory in North Rhine-Westphalia, the region's premier Juergen Ruettgers said.
Ruettgers said he is looking into ways to obtain reimbursement of 60 mln eur of regional aid.
The world's biggest handset maker was a 'locust which got money in Germany and then said without warning 'we are going to Romania' to maybe get more public funds there,' he said on public television ZDF.
Nokia also received more than 20 mln eur from the federal government, he adding, noting that the company waited until a deadline for reimbursement had passed before making its closure announcement.
Ruettgers said he will 'not let this pass' and challenged Nokia's argument that labour costs are too high in western Germany.
'Wages account for only five percent of total production costs at this plant,' he said.
Nokia announced the closure of the factory in Bochum, with 2,300 job losses, yesterday. It plans to transfer production to Romania.
m, Germany, Westdeutsche Allgemeine Zeitung reported.
State Economy Minister Christa Thoben has tasked publicly owned NRW Bank with recovering the money, the newspaper added.
Nokia announced the closure of the factory, with 2,300 job losses, yesterday.
manufacturer
Ruettgers said he was looking into ways to obtain reimbursement of regional aid to Nokia, which amounted to 60 million euros (90 million dollars).
He noted the Finnish group had waited until a deadline for reimbursement had passed before making its announcement.
Nokia also received more than 20 million euros from the German federal government, according to the regional premier. The government of North Rhine-Westphalia plans to demand that Nokia repay 17 mln eur of subsidies following the Finnish handset giant's decision to close its plant in Bochum, Germany, Westdeutsche Allgemeine Zeitung reported.
State Economy Minister Christa Thoben has tasked publicly owned NRW Bank with recovering the money, the newspaper added.
Nokia announced the closure of the factory, with 2,300 job losses, yesterday.
Nokia dubbed a 'locust' in plant closure row
FRANKFURT, Jan 16, 2008 (AFP) - A regional German leader accused Finnish handset manufacturer Nokia of being a 'locust' on Wednesday after it unveiled plans to close a German factory.
The world's leading mobile phone maker was a 'locust which got money in Germany and then said without warning 'we are going to Romania' to maybe get more public funds there,' western regional premier told public television ZDF
Ruettgers said he is looking into ways to obtain reimbursement of regional aid to Nokia, which amounted to 60 million euros (90 million dollars).
.
The term locust has been commonly used in Germany over the past few years in reference to companies deemed to be too greedy.
Nokia said Tuesday it planned to close a factory in the city of Bochum that employs 2,300 workers and transfer production to more competitive European plants.
German press reports say more than 4,000 jobs are threatened, including part-time posts and work at subcontractors.
Ruettgers said he was looking into ways to obtain reimbursement of regional aid to Nokia, which amounted to 60 million euros (90 million dollars).
Nokia also received more than 20 million euros from the German federal government, according to the regional premier.
He noted the Finnish group had waited until a deadline for reimbursement had passed before making its announcement.
He noted the Finnish group had waited until a deadline for reimbursement had passed before making its announcement.
Nokia also received more than 20 million euros from the German federal government, according to the regional premier.
Ruettgers vowed he would 'not let this pass' and challenged Nokia's argument that labour costs were too high in western Germany.
'Wages account for only five percent of total production costs at this plant,' he said.
source
Ruettgers said he is looking into ways to obtain reimbursement of 60 mln eur of regional aid.
The world's biggest handset maker was a 'locust which got money in Germany and then said without warning 'we are going to Romania' to maybe get more public funds there,' he said on public television ZDF.
Nokia also received more than 20 mln eur from the federal government, he adding, noting that the company waited until a deadline for reimbursement had passed before making its closure announcement.
Ruettgers said he will 'not let this pass' and challenged Nokia's argument that labour costs are too high in western Germany.
'Wages account for only five percent of total production costs at this plant,' he said.
Nokia announced the closure of the factory in Bochum, with 2,300 job losses, yesterday. It plans to transfer production to Romania.
m, Germany, Westdeutsche Allgemeine Zeitung reported.
State Economy Minister Christa Thoben has tasked publicly owned NRW Bank with recovering the money, the newspaper added.
Nokia announced the closure of the factory, with 2,300 job losses, yesterday.
manufacturer
Ruettgers said he was looking into ways to obtain reimbursement of regional aid to Nokia, which amounted to 60 million euros (90 million dollars).
He noted the Finnish group had waited until a deadline for reimbursement had passed before making its announcement.
Nokia also received more than 20 million euros from the German federal government, according to the regional premier. The government of North Rhine-Westphalia plans to demand that Nokia repay 17 mln eur of subsidies following the Finnish handset giant's decision to close its plant in Bochum, Germany, Westdeutsche Allgemeine Zeitung reported.
State Economy Minister Christa Thoben has tasked publicly owned NRW Bank with recovering the money, the newspaper added.
Nokia announced the closure of the factory, with 2,300 job losses, yesterday.
Nokia dubbed a 'locust' in plant closure row
FRANKFURT, Jan 16, 2008 (AFP) - A regional German leader accused Finnish handset manufacturer Nokia of being a 'locust' on Wednesday after it unveiled plans to close a German factory.
The world's leading mobile phone maker was a 'locust which got money in Germany and then said without warning 'we are going to Romania' to maybe get more public funds there,' western regional premier told public television ZDF
Ruettgers said he is looking into ways to obtain reimbursement of regional aid to Nokia, which amounted to 60 million euros (90 million dollars).
.
The term locust has been commonly used in Germany over the past few years in reference to companies deemed to be too greedy.
Nokia said Tuesday it planned to close a factory in the city of Bochum that employs 2,300 workers and transfer production to more competitive European plants.
German press reports say more than 4,000 jobs are threatened, including part-time posts and work at subcontractors.
Ruettgers said he was looking into ways to obtain reimbursement of regional aid to Nokia, which amounted to 60 million euros (90 million dollars).
Nokia also received more than 20 million euros from the German federal government, according to the regional premier.
He noted the Finnish group had waited until a deadline for reimbursement had passed before making its announcement.
He noted the Finnish group had waited until a deadline for reimbursement had passed before making its announcement.
Nokia also received more than 20 million euros from the German federal government, according to the regional premier.
Ruettgers vowed he would 'not let this pass' and challenged Nokia's argument that labour costs were too high in western Germany.
'Wages account for only five percent of total production costs at this plant,' he said.
source
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