statesman news service
KOLKATA, 1 JUNE: Telecom equipment maker Nokia Siemens Networks will close its factory manufacturing fixed line equipment at Salt Lake Electronics Complex, with effect from 31 July.
The company took this decision following decline in demand, refocus of company strategy on mobile broadband and unprofitability of fixed line telephony products.
Official communication to 48 factory employees out of 65, who had not opted for voluntary retirement scheme, was sent yesterday, which includes details of the closure notice.
Nokia Siemens Networks remains committed to West Bengal with current employee strength of around 700 and managing mobile telecom networks that carry over 26.5 million subscribers in the state, said a company statement.
"We would like to share with you that the management of Nokia Siemens Networks, after evaluating all possible alternatives, have taken a final decision to close the Kolkata factory at Salt Lake Electronics Complex, Sector V, with effect from 31 July 2013," the statement said.
The 48 factory employees are to receive closure compensation. Out of the total 65, six employees took transfers within the organisation and 11 had accepted voluntary separation scheme last year.
The Kolkata factory with its focus on fixed line telephony products and serving operators in India with legacy fixed line operations has not been profitable. Changing consumption trend from fixed line telephony to mobile telephony in India in the last few years has influenced the decision of the company.
Besides, Nokia Siemens Networks embarked on a substantial, two-year restructuring and transformation programme in November 2011 which involved focusing its business on mobile broadband and services. There have been several initiatives in support of this shift in strategy and the decision to close the Kolkata factory is one of such initiatives to support the company&’s focused business portfolio and restructuring programmes, the company said.
The company said that the state authorities have offered all possible support and we are thankful to them, adding, Nokia Siemens Networks will continue its commitment in West Bengal.
"We understand separation is never easy and thus have endeavoured to approach this with responsibility and consideration for the future of the employees. All options of alternate employment within Nokia Siemens Networks were considered, offering opportunities within the organisation in Bengal and other locations of Nokia Siemens Networks’ business in India," the company statement said.