Motorola may shift Singapore facility to India

Struggling US telecom giant Motorola is exploring the possibility of shifting part of the manufacturing facility it is closing in Singapore to India.

China and Thailand are also on the radar. Top sources said India is high on the list since Motorola already has a plant in Chennai and a large domestic mobile phone base of over 120 million phones annually.

Motorola manufactures both CDMA and GSM handsets from this facility, but the company does not provide monthly manufacturing data nor its market share. Analysts said it is among the top three, Nokia and Samsung being at number one and two respectively.

Last week, Motorola announced that it would be spinning off its mobile business into a separate company after pressures from shareholders. Indian electronics goods-maker Videocon Industries has announced its intention of acquiring the business that would be valued at around $4 billion.

In an e-mailed reply, company spokeswoman Lynn Chan, based in Singapore, said: "At this time, we will not be able to provide details on which specific countries the Singapore manufacturing operations will be shifted to, and by how much, since this is a phased transition that will take place over the next few quarters and will only be completed by year end."

The telecom giant had said it would close its Singapore unit as part of its $500-million global cost-cutting exercise. The move will impact 700 employees, even though it is aimed at aligning the company's operations to grow the business.

"Motorola confirms that as part of its strategic review of business operations, the company will begin a phased transition of its mobile phone manufacturing operations from Singapore to other Motorola facilities worldwide," a company release said.

"This transition will enable Motorola to align the organisational structure with long-term plans to drive the business while continuing to provide its customers high-quality products and services," it added.