Julien Happich EE Times Europe (02/08/2010 4:56 AM EST)

PARIS — Nokia announced plans to develop its Salo plant to ensure production is focused fully on the high-value smartphone market, especially in Europe. Staff cuts are expected.

The key drivers for a new operating mode in Salo plant are diverse customer requirements, faster deliveries in high-end mobile device manufacturing and the company's transformation towards a solution-driven offering.

The plans will result in the introduction of new and highly specialized manufacturing methods and also entail changes to personnel at the facility.

The planned new focus for Salo is expected to affect a maximum of 285 employees involved in production and in related support functions at Salo.

Today, Nokia's Salo facility employs approximately 2 200 people.

Nokia will support alternative solutions, such as finding new positions at Nokia for as many employees as possible.

Nokia will begin consultations with employee representatives about these plans, including discussions about voluntary severance packages.

Additionally, Nokia plans to stop currently ongoing rotational temporary lay-offs at the Salo plant by the end of June 2010.

Visit Nokia 's website