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UPDATE 2-German rage over Nokia plant closure grows

Fri Jan 18, 2008 11:45am EST
 
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(Adds background, reaction, talks)

By Sylvia Westall

BERLIN, Jan 18 (Reuters) - German anger over plans by Nokia (NOK1V.HE: Quote, Profile, Research, Stock Buzz) to close a plant escalated on Friday, with the finance minister accusing the cellphone maker of "caravan capitalism" and others vowing to replace their Nokia phones.

Nokia, the world's top cellphone maker, said earlier this week it would close the plant in the western city of Bochum because it was not competitive and move production to Romania.

The Finnish firm's plans to cut up to 2,300 jobs have drawn political criticism ahead of state elections.

"This is the expression of a caravan capitalism which systematically undermines support for this economic and social system," Finance Minister Peer Steinbrueck a Social Democrat, told German radio.

"People are losing confidence and that is extremely dangerous and of political importance," he said.

The Economy Ministry later said it had hosted talks in Berlin between Nokia officials and the economy minister of North Rhine-Westphalia, the state where the plant is based. A ministry spokesman declined to give details on the outcome of the talks.

A Nokia spokeswoman in Helsinki declined to comment and referred questions to Nokia representatives in Germany, none of whom were available throughout Friday.  Continued...

 

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