It seems the realization is slowly setting in that due to ongoing Tax tussles with Indian IT (Income Tax) and Tamil Nadu state IT departments, the Chennai plant may not make to Microsoft as part of the Nokia-Microsoft deal. But, Nokia will keep on manufacturing phones for a period of time and provide service to Microsoft, if so happens. Nokia has also denied that it plans to close the factory and claimed that VRS offered to plant workers is only to adjust production volume-manpower ratio,
The company’s interim CEO Timo Ihamuotila told Yle that the company has contingency plans.
”If it so happens that the factory does not transfer to Microsoft, then our intention is to provide services for Microsoft for a period of time, ie to make mobile phones at that plant,” said Ihamuotila.
”During that period when we provide these services to Microsoft, we will look in this difficult situation to find the best long-term solution for both the factory and the workforce.”
Timo also confirmed that the deal will go through on time, even in face of such issues.
Ihamuotila also re-affirmed his belief that the Microsoft deal will go through on time despite delays.
”We now expect that the deal will happen during April, but it is also difficult to predict official approval processes,” said Ihamuotila.
