Nokia plant likely to be ready by April '06

Nokia's Sriperumbudur plant (near Chennai) is likely to be completed by March/April next year, a little ahead of the original schedule, said Dayanidhi Maran, Union minister of communications and IT.

Between Nokia and its component suppliers located within the Nokia Special Economic Zone (SEZ), more than 10,000 people would be employed, said Maran after a review of the construction work today.

The Sriperumbudur plant is Nokia's 10th facility in the world. The plant and those of the component makers would be located within the 210.87 acre SEZ. Nokia's plant would cover a floor space of 29,000 square metres.

Between Nokia and its component makers, an investment of $ 300 million (about Rs 1,315 crore) is expected to flow in over the next few years.

When Nokia announced its intention to set up the plant in Sriperumbudur in April 2005, the company's officials said the plant would be initially used to make mobile handsets.

Maran said that there was a possibility that Nokia could also make telecom network equipment in India. It came in the context of the manufacturing obligation that has been imposed on global telecom companies that have bid for network contracts in India.

Some of the successful bidders such as Nortel are expected to use contract manufacturers to fulfil their obligations.

Flextronics, which is to set up a plant to make electronics/telecom equipment in Sriperumbudur, has a global manufacturing agreement with Nortel. Flextronics is likely to use its planned plant to make some equipment for Nortel.

A media release from Nokia said that construction work at the SEZ is being carried out by Leighton Contractors. Over 1,000 people are deployed at the site, added the release.