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October 30, 2012

Nokia Plans to Sell Part of its Salo Plant to Drugmaker Orion

Finnish mobile phone maker Nokia, a long-time mobile phone supplier, is set to sell a part of its manufacturing plant in Salo, Southwest Finland. Nokia will be closing the Salo plant.

Nokia plans to sell the part of the Salo plant to drugmaker, Orion, after shutting it down. Nokia’s property in Salo includes warehouses and production facilities. The company would be ending its production in Salo in June.

There would be about 850 jobs that would be cut because of the shutdown of the Salo plant.

Nokia aims at strengthening its cash position – one of the factors driving the restructuring process at Nokia. It is launching new smartphones to recapture the market share it lost to Samsung and Apple.

The Salo plant was the hub of Nokia’s success story in 1990s. In western Europe, it was the last major cell phone factory.

Headquartered at Espoo, Finland, Orion Corporation is a Finnish company. It develops, manufactures and markets pharmaceuticals, active pharmaceutical ingredients and diagnostic tests for global markets. Orion Corp. has a large R&D unit in Turku, and plans to implement a new packaging and logistics center at the Salo plant. It will be operational in 2013.

Orion expects employ about one hundred people by 2014.

Virve Laitinen, a spokesperson from Orion's supply chain, said the new logistics center will enable the expansion of numerous operations, as the headquarters in Espoo and Turku were not enough.

Edited by Braden Becker

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