Thursday, March 27, 2008

EU commission demands information from Romania on Nokia subsidies - report

FRANKFURT, Mar. 27, 2008 (Thomson Financial delivered by Newstex) -- The EU commission is demanding information from Romania on subsidies granted to Nokia (NYSE:NOK) OYJ as part of the company's decision to build up a production plant in the country, Westdeutsche Allgemeine Zeitung (WAZ) reported, citing EU commissioner Danuta Huebner.

'The commission has called on the Romanian authorities to deliver relevant information,' she was quoted as saying in a response to a parliamentary request, obtained by WAZ.

Accordingly, the EU is planning to examine whether the subsidies granted by Romania 'in connection with the activities of Nokia' conform to EU rules, the paper added.

In January, Nokia announced the closure of its German plant in Bochum, with 2,300 employees, and said it planned to build up a production site in Romania as it was too expensive to operate in Germany.

The German state of North Rhine-Westphalia (NRW), meanwhile, said it is demanding around 60 mln eur worth of subsidies and interest from Nokia in connection with the closure of its Bochum plant.

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