Nokia 2012 Annual Report Download - page 57

Production of mobile devices
For the production and customization of mobile devices, we operate facilities in Asia, Europe and Latin
America.
In connection with the implementation of our strategy, we have made a number of changes to our
operations resulting in the closure or planned closure and reconfiguration of certain Nokia facilities. In
late 2011, we closed our facility in Cluj, Romania, before selling the site to household appliances group
De’ Longhi in early 2012. Later in 2012, we made changes to our facilities in Komárom in Hungary and
Reynosa in Mexico, shifting product assembly to other Nokia sites to ensure these two facilities
focused on software and sales package customization. We also closed our production facility in Salo in
Finland. Today, we carry out most of our product assembly at our Asian facilities which have greater
proximity to our key component suppliers.
The following table shows our major manufacturing facilities as of December 31, 2012.
Country Location Product focus Production focus
BRAZIL Manaus Mobile Phones and Smart Devices Assembly as well as
software and sales
package customization
CHINA Beijing Smart Devices Assembly as well as
software and sales
package customization
Dongguan Mobile Phones Assembly as well as
software and sales
package customization
HUNGARY Komárom Smart Devices Software and sales
package customization
INDIA Chennai Mobile Phones Assembly as well as
software and sales
package customization
MEXÌCO Reynosa Smart Devices Software and sales
package customization
REPUBLIC OF
KOREA
Masan Smart Devices Assembly as well as
software and sales
package customization
Nokia is planning to establish a new manufacturing facility near Hanoi in northern Vietnam. The
targeted opening of the facility is the second half of 2013. The new manufacturing site is being
established to produce our most affordable smartphones and feature phones.
Our manufacturing facilities form an integrated global production network, giving us flexibility to adjust
our production volumes to fluctuations in market demand in different regions. Each of our plants
employs state-of-the-art technology and is highly automated. A significant part of the production of a
mobile device includes software and sales package customization—or the integration of software and
content—a process which is usually done according to the specific requirements of our customers and
the needs of individual markets.
Our mobile device manufacturing and logistics are complex and require advanced and costly
equipment. From time to time, we outsource the manufacturing of certain aspects of certain products
and components to adjust our production to demand fluctuations, as well as to benefit from expertise
others have in the production of certain mobile technologies. For certain of our devices, we use
contract manufacturers to produce the entire product. During 2012, the vast majority of our
manufacturing needs were met by our own production network.
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