Monday 27th May 2019 - Logistics & Supply Chain

Nokia restructures smartphone supply chain

Nokia is restructuring its smartphone supply chain moving assembly out of Europe and the Americas to factories in Asia where most of the components are sourced.

As a result factories in Komarom, Hungary, Reynosa, Mexico and Salo, Finland will focus on smartphone product customisation, serving customers mainly in Europe and the Americas. About 4,000 jobs will go as a result.

Niklas Savander, Nokia executive vice president, markets, said: “Shifting device assembly to Asia is targeted at improving our time to market.  By working more closely with our suppliers, we believe that we will be able to introduce innovations into the market more quickly and ultimately be more competitive.”

“We recognise the planned changes are difficult for our employees and we are committed to supporting our personnel and their local communities during the transition.”

The move follows a review of the long term role of the  operations which was announced in September last year.

At the time it announced the closure of its factory in Cluj, Romania and adjustments to related the supply chain operations. It said the aim was to focus its feature phone manufacturing on those locations with optimal proximity to suppliers and key markets and the Asian factories provided greater scale and proximity benefits.

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