Nokia to Idle Indian Manufacturing Plant

Posted by at 10:37 am on October 7, 2014

Nokia has indicated it will cease production at a facility located in Chennai, India.

Nokia still owns and operates the plant despite the fact that it sold its handset division to Microsoft earlier this year. The plant was caught up in tax issues with the Indian government and left out of the sale. Nokia has continued to run the plant as a contract service for Microsoft.

“Microsoft has informed Nokia that it will be terminating the manufacturing services defined in the agreement with effect from Nov. 1. In absence of further orders from Microsoft, Nokia will suspend handset production at the Sriperumbudur facility,” said the company in a statement.

The facility is among the largest owned by Nokia.

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