German govt demands Nokia repay 4 bln eur of research subsidies - report

FRANKFURT, (Thomson Financial delivered by Newstex) -- The German government is demanding that Nokia (NYSE:NOK) Oyj pay back 4 bln eur worth of subsidies after the company announced plans to close its factory in Bochum, Germany, WirtschaftsWoche reported, citing Ministry sources.

The German state of North Rhine-Westphalia last month called on Nokia to pay back 41 mln eur of subsidies, and the company said it will refuse to do so.

The German Research Ministry gave Nokia 4 bln eur to fund four separate research projects dealing primarily with new antennae and wireless transmission technology, the magazine said.

The Ministry has asked Nokia to explain by early April which patent filings resulted from the projects and which German production or research sites benefited from the results of the projects, it said.

In January, Nokia announced that it will close its Bochum plant this summer, saying it is too expensive to operate there. The bulk of its production is being transferred to a lower-cost Romanian factory, which starts up this quarter.

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