Manner-Suomi; Etelä-Suomi; Uusimaa
Location of affected unit(s)
Manufacture Of Computer, Electrical Electronic And Optical Products
Manufacture Of Computer, Electronic And Optical Products
26 - Manufacture of computer, electronic and optical products

750 jobs
Number of planned job losses
Job loss
Announcement Date
12 November 2008
Employment effect (start)
Foreseen end date
31 August 2009


The mobile networks company Nokia Siemens Networks (NSN) is closing down its factory in Karaportti in Espoo and is to cut 560 jobs in 2009. Most of the dismissals will take place in the capital area. From the Espoo factory, which is to be closed down in stages during the summer, 282 people will be made redundant from production and support services.

According to Nokia Siemens Networks Chief Operating Officer Mika Vehviläinen, the production of microwave radio products will be moved from Espoo to the Chennai plant in India while the base station product manufacturing will continue at the Suzhou factory in China. "Moving the production to the Durach factory in Germany is only a temporary operative solution", Vehviläinen continues.

Among workers at the plant, the moving of production to Durach has caused an outrage. The factory there was bought in November by several directors of Nokia Siemens Networks. The factory's present owner SRI Radio System's CEO is Martin Kampmann, whom many consider to be the principal architect of the closure of the Espoo factory. "This is false information. Kampmann was not present when the decision on closing the Espoo production facility was made. An audit was performed on the matter, which proved that everything was done correctly", Vehviläinen notes.

The personnel negotiations that started in November 2008 were completed on Tuesday 10 February 2009. According to Vehviläinen, through internal arrangements the company was able to reduce the need for dismissals from the original figure of 750 employees. According to Vehviläinen the cost-efficiency savings related to the 2007 establishment of the joint venture between Nokia and Siemens have now been achieved. "Of the three largest players in the field, our cost structure is now the lowest. In this view we do not have to plan any further reductions in Finland", Vehviläinen concludes.


  • 11 February 2009: Helsingin Sanomat
  • 12 November 2008: Helsingin Sanomat


Eurofound (2008), Nokia Siemens Networks, Closure in Finland, factsheet number 67473, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/67473.