Nokia India factory has been hit by a tax dispute next month shutdown capacity

Beijing time, October 8 (Reuters)-Nokia said in Tuesday that Nokia's mobile phone manufacturing plant in Chennai (Chennai) will be suspended from November 1 because it failed to reach agreement with the Indian government over the tax dispute. Nokia sold its mobile phone business to Microsoft this April, but the handset factory in Chennai, India, was not included in the sale because of a tax dispute with the Indian government. The factory is still operating as a Microsoft contract agency. Nokia said in a statement in Tuesday: "Microsoft has informed Nokia that it will terminate the contract of work under the Agreement, effective on November 1." With no orders from Microsoft, the handset manufacturing plant at the Sriperumbudur Industrial park in Chin Neiscriberubde will be suspended. The handset factory in Chennai, one of Nokia's largest mobile phone manufacturing bases, has been frustrated by tax disputes with local governments. In April this year, Nokia decided to provide a voluntary retirement scheme for its employees after a predictable and stable assessment of the local factory regulatory environment. At that time, the factory had 6,600 full-time employees. Nokia said it was unable to look for potential opportunities to transfer factories as local tax authorities froze corporate assets, helping successors build long-term viability and build fully functional electronic manufacturing ecosystems. (Compile/Joshui)