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Nokia ropes in global component units

Special Correspondent

Aspocomp group to set up PCB plant; Perlos Corporation to establish services unit

SRIPERUMBUDUR: Even as the Finland-based mobile phone major Nokia formally kick-started its Indian manufacturing operations, it has roped in two global component suppliers to co-locate their manufacturing base within the Nokia India Telecom Industry Park here. The two companies — Aspocomp Group and Perlos Corporation — are expected to invest a total of around $82 million in the Nokia Park.

Aspocomp Group will expand its high-density inter-connection (HDI) business by establishing a grass-root printer circuit board (PCB) plant at an estimated investment of around $70 million. Perlos Corporation, a well-known supplier of mechanics for the telecom industry, will set up a production base at an estimated investment of $12 million.

To create 10,000 jobs

Addressing a press conference after the formal inauguration of the Nokia facility here on Saturday, Jukka Lehtela, Director (Operations), Nokia India Pvt. Ltd., said the company was close to finalising agreements with two more component suppliers to set up shop inside the Nokia Park. He expected about ten international component suppliers and service providers to co-locate their plants at Sriperumbudur. He estimated that the Nokia Park would eventually create over 10,000 jobs.

Isto Hantila, President and CEO, Perlos Corporation, said his company was investing heavily in the Asia-Pacific region. The proposed plant at Nokia Park here, he said, would "offer services to mobile device manufacturers investing in India and to companies providing electronics manufacturing services.'' He expected the plant to go on stream in early 2007 and employ around 1,000 people.

Maija-Liisa Friman, CEO of Aspocomp, said her company had a long association with Nokia. India was a logical step after Aspocomp set up plants in Thailand and China, she added. The company's proposed facility would go commercial by the second half of 2007 and employ around 1,000 people, she said. Stating that "India is the most impressive and interesting country,'' she said Aspocomp would be first company to make high-density inter-connect PCBs in India.

Mr. Lehtela emphasised that "the mission of Nokia Park is to create a network of co-located and co-dependent partners that operate to world class standards and manufacture high quality products that set the bench-mark for the mobile industry.'' Fielding a range of questions, he said the Nokia plant here was a 24x7 operation and employed around 1,100 people. This number would go up significantly over time. Since its commercial production began on January 2, 2006, the plant had churned out over one million handsets till date. Nokia was committed to an investment of $150 million in India over a three-year period. The Sriperumbudur plant would make "high running products in the low and medium range.'' The Indian facility would first service the local demand and exports would commence in six months, Mr. Lehtela said.

Robert Anderson, Executive Vice-President (Customer and Market Operations) of Nokia, said the Indian facility "is a cost-effective and high volume manufacturing site.''

He cited among other things the fast growing mobile market, availability of skilled personnel and the logistics as reasons for establishing a production base here. Nokia officials, however, would not comment on the capacity of the plant. They merely said that the plant had enough flexibility built into it.

The officials said Nokia was also setting up its global network solutions centre in Chennai. for select operator customers in the Asia-Pacific region as well as Europe, West Asia and Africa. Officials indicated that the centre would become operational in the first half of this year.

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