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Nokia will not refund Bochum factory construction subsidies

de Radu Big
Miercuri, 6 februarie 2008, 14:27 English | Business

Finland-based company Nokia emphasized that it will not refund the subsidies it received for the construction of its production facility in Bochum, Germany. The factory is about to be shut, Nokia deciding to outsource the production to Romania, Forbes informs.

According to company officials, there are no reasons to return the 41 million euro subsidies received a decade ago, since it invested more than the German officials demanded. Regional NRW Bank, the institution that contributed to the Nokia factory construction between 1998 and 1999, demanded the company to return the funds it received and to answer within a week.

Regional authorities of the German land Renania North-Westphalia argued that the refund claim is motivated by Nokia's fail to employ the promised 2,860 people, having employed, in fact, between 200 and 400 people less, between 2002 and 2005.

2,300 Nokia employees will lose their jobs after the company opens its operations in Romania and other 2,000 people working for companies that provided Nokia with equipment may also be sacked. Meanwhile, the record-breaking profits announced by the company in 2007 led to a massive discrediting of the company in Germany, many consumers announcing they will boycott the brand.

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