Nokia has begun construction of a new plant in Vietnam.

Despite the fact that the Finnish company is not having the best of times (in the first quarter net loss amounted to 1.34 billion euros), Nokia does not give up, hoping to overcome the difficulties. Today, the company announced the start of construction of a new plant in Vietnam, in the province of Bacnin. About 17 hectares of land in this region was leased for the construction of the plant.

According to the Nokia management, the new plant will allow to kill two birds with one stone. First, the company receives labor, which costs even less than in China, where workers demand higher and higher wages. Secondly, the company significantly reduces transportation and logistics costs - now the Asian region is located near the production point. And in Asia, there is a growing demand for low-end phones and smartphones, a sector where Nokia has traditionally been strong.
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In Vietnam, Nokia has two offices - in the cities of Ho Chi Minh and Hanoi. Now, a pure production unit has appeared, and a rather powerful one. True, the cost of construction of the plant rather big, and is about 300 million dollars. For Nokia with its financial problems, this amount is really great. And for other large companies that are not experiencing financial difficulties, 300 million is also a rather big sum. Nokia management hopes that the factory will allow the company to increase the sales market of phones, making them cheaper. As a result, profit growth and the exit of the company from the crisis

It is planned that the plant will be built quickly enough so that production can start work in early 2013. Production capacity of the plant will allow to produce more than 50 million devices per year.

Via engadget