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Germany Points Finger At Nokia In Subsidies Matter -Press

German daily Focus informed that Finnish mobile phone giant Nokia, that decided to close its factory in Germany and move it to Romania, is said to have cashed more subsidies than legally entailed to, by hiring fewer people than it had initially announced.
Germany Points Finger At Nokia In Subsidies Matter -Press
26 ian. 2008, 18:23, English

Nokia hired in its factory in Germany’s Ruhr region between 200 and 400 fewer people than it had previously announced, while it received EUR40 million from state authorities, explained the spokesperson of the North Rhine-Westphalia state.

According to the report quoted by Focus, Nokia promised to hire 2,860 people at its Bochum factory.

The daily reported that the prosecutors’ office in Dusseldorf, will start an investigation to see if Nokia can be accused of fraud in the matter.

The federal government is looking for ways to recover part of the subsidies granted to Nokia, EUR20 million respectively, from the federal state according to Juergen Ruettgers, Prime Minister of the region.

On Tuesday, Nokia announced it plans to close the factory in Bochum in the Ruhr industrial heartland and shift production to Romania where labour costs are lower. The closure will result in 2,300 job losses.