Nokia to Sell Romania Plant to De' LonghiNokia to Sell Romania Plant to De' Longhi

Nokia and De' Longhi announced that they have agreed terms for De' Longhi to acquire Nokia's production facility in Cluj, Romania

January 25, 2012

1 Min Read

ESPOO, Finland, and TREVISO, Italy -- Nokia Corporation, a global leader in mobile communications, and De' Longhi SpA, a global leader in household appliances, today announced that they have agreed terms for De' Longhi to acquire Nokia's production facility in Cluj, Romania, subject to approvals by the relevant authorities.

The transaction is expected to be finalized during the first quarter of 2012 and the parties have agreed to keep the terms confidential.

De' Longhi plans to make the facility a key part of its development strategy, aimed at supporting its fast-growing international presence. The facility will also enable De' Longhi to adapt and diversify its production network so as to partly rebalance its manufacturing structure from the Far East to Europe, where De' Longhi already operates a plant in Italy.

After announcing its plans in September 2011 to end manufacturing in Cluj and focus feature phone production in locations closest to suppliers and key markets, Nokia has been active in seeking potential buyers for the facility in close consultation with the relevant authorities in Romania.

Robert Andersson, senior vice president at Nokia, who led the discussions, said: "As we assessed the interest in our facility, Nokia was determined to find a major investor with clear plans for growth and committed to creating jobs here in the immediate future. De' Longhi was the ideal candidate in both respects and we are really pleased to have been able to secure the future of the facility so quickly."

Nokia Corp. (NYSE: NOK)

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