SRIPERUMBUDUR, INDIA – The Tamil Nadu government is reportedly in talks with at least four or five companies, including Foxconn, to revitalize the manufacturing facility here that Nokia India shuttered 18 months ago amid falling phone orders.

To facilitate a Foxconn takeover of the plant, India’s government reportedly would have to unfreeze Nokia’s assets by arranging for the proceeds of the sale/lease transaction to be paid into a separate escrow account.

Microsoft had acquired Nokia's phone business in spring 2014, but did not take possession of the Sruperumbudur plant because of a tax dispute between Nokia and the Indian government. Nokia continued to operate the factory under a services contract to Microsoft until its closing in late 2014.

At least 7,000 workers lost their jobs as a result of the shutdown, although some reports put the number as high as 15,000.

At the time, Foxconn also had an EMS factory in the Nokia Special Economic Zone that went under on short notice after Microsoft cut its phone orders, leaving more than 1,000 employees out of work. A Foxconn operation in nearby Sunguvanchathram manufactures products for other clients.

 

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