Is Chennai safe for the industries...
On November 1, Nokia announce its plan to shut down its unit in Chennai and now Foxconn has announced.
The uncertainty in the political scenario has forced the private companies to wind up their business. Are the businessmen are loosing hope to invest in Chennai and in Tamil Nadu...It has to be noted seriously by the political masters.
Chennai has turned into a business hub for the several car manufacturers. They opted Chennai because of the access to the Chennai port, which helped them a lot in exporting their goods.The situation has gone other way around.
Nokia to shut down Chennai plant on November 1
Telecom gear maker Nokia today said that it will shut down its Chennai plant from November 1 as Microsoft has terminated mobile purchase agreement from the the factory and it is left with no business.
"Microsoft has informed Nokia that it will be terminating the manufacturing services defined in the agreement with effect from 1 November 2014. In absence of further orders from Microsoft, Nokia will suspend handset production at the Sriperumbudur facility from 1st November," Nokia said in a statement.
In September 2013, Nokia announced it would sell its devices and services (D&S) business, including assets in India, to Microsoft for $7.2 billion by March 2014.
In March, the Tamil Nadu government served a Rs 2,400 crore notice on Nokia, saying the firm had also sold products from the Chennai plant in the domestic market instead of shipping them overseas.
In a separate tax case, the Supreme Court had ordered Nokia India on March 14 to give a Rs 3,500 crore guarantee before it transfers the plant to Microsoft.
As a consequence, Nokia entered into a transitional services agreement with Microsoft to address their immediate production needs and keep the factory operational.
Foxconn to suspend operations at Chennai plant
Electronics parts maker Foxconn will suspend operations at its facility near here from December 24, a development than will affect 1,700 workers and comes after its major customer Nokia shutting production at local facility in November.
However, employees of the contract manufacturer of mobile phone parts have threatened to go on strike against the management's decision to suspend operations.
Foxconn said, "We can confirm that our India operation, FIH India Pvt Ltd, will be suspending all operations at our manufacturing facility in Chennai effective December 24, 2014."
Noting that about 1,700 employees would be affected by this move, the company said it was working with the government and the "relevant" labour unions to ensure that "this action is carried out in a manner that follows all relevant laws and regulations and is fair."
The company said it is suspending operations at the plant following a change in manufacturing requirements of clients in India. However, workers threatened to go on strike to protest the management's decision.
"A meeting in the presence of Assistant Labour Commissioner was held today. There were people from the management and representatives of the Union. The issue was discussed and we have clearly explained our stand that the employees should not be removed from service," an official of CITU-backed workers' union told PTI.
The development at Foxconn India factory comes after the suspension of production at Nokia's facility at Sriperumbudur which was excluded out of the USD 7.2 billion deal the Finnish handset maker had inked with Microsoft.
Following the exclusion of the Nokia plant, several employees were up against management decision as some of them were there right from day the plant was inaugurated in 2006.
Nokia was one of the major customers for Foxconn. Besides serving Nokia, Foxconn has been involved in shipping some of the products to China and Vietnam.
Foxconn has invested around Rs 850 crore at two facilities present in the campus of Nokia Special Economic Zone and SIPCOT Industrial Park at Sriperumbudur.
"This action also related to a restructuring being carried out of our India operations that is designed to ensure that we are able to meet both the current and future needs of our customers in that important market," Foxconn said.
According to Union officials, about 70 per cent of products manufactured at the plant was served to Nokia unit which suspended production from November 1.
Asked about their next course of action, Union sources said there would be second round of tripartite talks on December 18.
Read more: http://timesofindia.indiatimes.com/toireporter/author-A-Selvaraj.cms
selvaraj251075.blogspot.com
On November 1, Nokia announce its plan to shut down its unit in Chennai and now Foxconn has announced.
The uncertainty in the political scenario has forced the private companies to wind up their business. Are the businessmen are loosing hope to invest in Chennai and in Tamil Nadu...It has to be noted seriously by the political masters.
Chennai has turned into a business hub for the several car manufacturers. They opted Chennai because of the access to the Chennai port, which helped them a lot in exporting their goods.The situation has gone other way around.
Nokia to shut down Chennai plant on November 1
Telecom gear maker Nokia today said that it will shut down its Chennai plant from November 1 as Microsoft has terminated mobile purchase agreement from the the factory and it is left with no business.
"Microsoft has informed Nokia that it will be terminating the manufacturing services defined in the agreement with effect from 1 November 2014. In absence of further orders from Microsoft, Nokia will suspend handset production at the Sriperumbudur facility from 1st November," Nokia said in a statement.
In September 2013, Nokia announced it would sell its devices and services (D&S) business, including assets in India, to Microsoft for $7.2 billion by March 2014.
In March, the Tamil Nadu government served a Rs 2,400 crore notice on Nokia, saying the firm had also sold products from the Chennai plant in the domestic market instead of shipping them overseas.
In a separate tax case, the Supreme Court had ordered Nokia India on March 14 to give a Rs 3,500 crore guarantee before it transfers the plant to Microsoft.
As a consequence, Nokia entered into a transitional services agreement with Microsoft to address their immediate production needs and keep the factory operational.
Foxconn to suspend operations at Chennai plant
Electronics parts maker Foxconn will suspend operations at its facility near here from December 24, a development than will affect 1,700 workers and comes after its major customer Nokia shutting production at local facility in November.
However, employees of the contract manufacturer of mobile phone parts have threatened to go on strike against the management's decision to suspend operations.
Foxconn said, "We can confirm that our India operation, FIH India Pvt Ltd, will be suspending all operations at our manufacturing facility in Chennai effective December 24, 2014."
Noting that about 1,700 employees would be affected by this move, the company said it was working with the government and the "relevant" labour unions to ensure that "this action is carried out in a manner that follows all relevant laws and regulations and is fair."
The company said it is suspending operations at the plant following a change in manufacturing requirements of clients in India. However, workers threatened to go on strike to protest the management's decision.
"A meeting in the presence of Assistant Labour Commissioner was held today. There were people from the management and representatives of the Union. The issue was discussed and we have clearly explained our stand that the employees should not be removed from service," an official of CITU-backed workers' union told PTI.
The development at Foxconn India factory comes after the suspension of production at Nokia's facility at Sriperumbudur which was excluded out of the USD 7.2 billion deal the Finnish handset maker had inked with Microsoft.
Following the exclusion of the Nokia plant, several employees were up against management decision as some of them were there right from day the plant was inaugurated in 2006.
Nokia was one of the major customers for Foxconn. Besides serving Nokia, Foxconn has been involved in shipping some of the products to China and Vietnam.
Foxconn has invested around Rs 850 crore at two facilities present in the campus of Nokia Special Economic Zone and SIPCOT Industrial Park at Sriperumbudur.
"This action also related to a restructuring being carried out of our India operations that is designed to ensure that we are able to meet both the current and future needs of our customers in that important market," Foxconn said.
According to Union officials, about 70 per cent of products manufactured at the plant was served to Nokia unit which suspended production from November 1.
Asked about their next course of action, Union sources said there would be second round of tripartite talks on December 18.
Read more: http://timesofindia.indiatimes.com/toireporter/author-A-Selvaraj.cms
selvaraj251075.blogspot.com
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