Shrygue
February 6th, 2008, 19:42
via Engadget (http://www.engadget.com/2008/02/06/germany-demands-60-5-million-from-astonished-nokia/)
The German state of North-Rhine Westphalia wants its €41.3 million (about $60.5 million [£30.85m]) back. The reason? Germany wants the corporate subsidies given to Nokia back in 1998 and 1999 for its plant in Bochum.
The very plant Nokia is about to shut down at the cost of some 2,300 German jobs. Nokia responded to Germany's demand saying that it is "astonished" and "Based on the facts available to the company and Deutsche Bank, its advisor throughout the entire period, both parties feel strongly that such an attempt is without merit."
Of course, Nokia won't hurt too badly if forced to pay out. Nokia's new Romanian plant is expected to cost just a tenth of the Bochum plant to operate. Nokia also posted a staggering $2.6 billion [£1.33bn] in profit from the last quarter alone. The German authorities know a cash cow when they see it.
The German state of North-Rhine Westphalia wants its €41.3 million (about $60.5 million [£30.85m]) back. The reason? Germany wants the corporate subsidies given to Nokia back in 1998 and 1999 for its plant in Bochum.
The very plant Nokia is about to shut down at the cost of some 2,300 German jobs. Nokia responded to Germany's demand saying that it is "astonished" and "Based on the facts available to the company and Deutsche Bank, its advisor throughout the entire period, both parties feel strongly that such an attempt is without merit."
Of course, Nokia won't hurt too badly if forced to pay out. Nokia's new Romanian plant is expected to cost just a tenth of the Bochum plant to operate. Nokia also posted a staggering $2.6 billion [£1.33bn] in profit from the last quarter alone. The German authorities know a cash cow when they see it.