Microsoft will halt and reduce Nokia production in Hungary, China and Mexico as it is switching its phone manufacturing to a Vietnamese factory in the northern province of Bac Ninh.
A statement issued by Nokia Vietnam Wednesday said Microsoft, which took over Nokia’s phone business in a US$7.2 billion deal last April, is going to shut down factories in Komarom, Hungary, and narrow the operation at factories in Beijing and Dongguan outside Guangzhou.
Another factory at Reynosa, Mexico will be reduced into a repair center, the company said.
The Bac Ninh factory meanwhile will be developed in both scale and technologies to carry out more complicated phases of the production, it said.
The factory, which was inaugurated last October after a pilot operation from June, is scheduled to cover almost the entire Nokia handset production from this November as Microsoft’s main factory.
The factory will be upgraded to 39 assembly lines by the end of the year from six last year. Year-end outputs are expected to increase threefold with more complicated products, guaranteeing an annual export of 76.4 million products worth US$1.86 billion.
The Finns mobile phone giant Nokia, which established its presence in Vietnam in 2011, said the factory would start to produce more modern generations of Lumia this month.
Final products are scheduled to hit market shelves by the end of this year.
Bac Ninh factory has recruited 5,500 workers and 200 management staffs but the demand is likely to grow at least 50 percent given the intensive development plan.
The company said it is going to need twice the current professional engineers as well as a large number of technicians.