Nokia opts for Chennai to set up mfg plant

Finnish mobile handset major Nokia is planning to set up a manufacturing plant in Chennai with an investment of up to $150 million to meet the booming demand in the country.

The construction work for the plant will start this month, and production is likely to begin in the first half of 2006.

The expansion of the plant will see an intake of approximately 2,000 employees after production is in full swing, the company said in a statement,  adding it anticipates investing an estimated $100-150 million in the plant.

The Chennai unit will be Nokia's tenth mobile device production facility globally, and will roll-out India-specific entry level, mid and upper-end GSM and CDMA handsets.

Nokia president Pekka Ala-Pietial had called up telecom minister Dayanidhi Maran earlier in the day to inform him about the company's decision on selecting Chennai as the site.

Welcoming the decision, Maran said: "This is the result of efforts of the communications ministry and the subsequent formation of an inter-ministerial task force in October last year with a view to co-ordinate with the state governments."

The government is expecting $800-900 million FDI in telecom manufacturing segment in the current fiscal.