CHENNAI, INDIA – Foxconn has struck a deal to reopen a Nokia manufacturing plant here, pending government approval.

Foxconn had acquired the plant from Nokia but closed it to avoid inheriting local tax liabilities.

Foxconn plans to use the plant to manufacture mobile phones and telecom network equipment for global distribution, according to published reports. However, the EMS/ODM reportedly also wants the Indian government to rezone the area where the plant is located into a domestic tariff area at no cost to the firms, so products made at the plant can be sold locally.

The contract manufacturer’s intention is to eventually make 100 million phones there annually.

The project also needs support of the provincial and national governments, Foxconn said.

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