Tuesday, March 11, 2008
The North Rhine Westphalia state government claims back some €60 million (about $90 million) of subsidies it has paid to Nokia. According to media reports here, the chances are high the government can enforce the payback.
In 1999, the state government of North Rhine Westphalia had paid about €41 million to Nokia when the company launched its Bochum production which it now intends to close. The subsidies have been granted under the condition the company would create 2800 jobs which it failed to achieve — the company created only about 2300 jobs. Now the state government does not only claim back the subsidies paid, but also €18 million interest.
According to media releases, Nokia has expressed the opinion that in order to calculate the correct number of jobs created the jobs at contract companies and temporary employment agencies has to be included into the figure. This posture however is challenged by North Rhine Westphalia's conservative minister of economy, Christa Thoben.
Several weeks ago, Nokia has announced to close down the Bochum plant where it manufactures mobile handsets and dislocate the activities to Romania. The move has sparked a fierce discussion in the public since the plant always worked with profit.
By: DocMemory
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