Nokia’s Expansion in Latin America

Scheduled for the fourth quarter of 2005, Nokia opened only on the 1st of March 2006 the expansion to its Tamaulipas plant, in Reynosa, Mexico.

This action is intended to boost Nokia’s mobile-device production. With an investment of more than $50 million USD, the expansion provides greater capacity and flexibility to meet the requirements of Nokia’s customers in Mexico, Latin and North America. The new facility is located near the present Nokia factory in Reynosa. Increasing capacity will help Nokia further improve its competitive position. Growing mobile penetration in Latin America is expected to be a major contributor to the global mobile subscriber base.

“The production plant facilities in Reynosa are an integral part of our global manufacturing system,” said Philip de la Vega, Managing Director, Nokia Mexico.

Nokia has currently nine factories producing mobile devices worldwide, and the tenth factory in Chennai, India will be inaugurated later this month.

Reynosa is an industrial city in the Northern Mexico, near Rio Grande, the border between Mexico and the U.S. It is place for a lot of maquiladoras, factories that import materials and equipment on a duty-free and tariff-free basis for assembly or manufacturing.