Nokia phone maker HMD Global has announced plans to relocate some of its manufacturing operations to Europe. The Finnish-based company, which owns the rights to the iconic Nokia brand, said it plans to use a third-party contractor to supply parts and components for its smartphones.
HMD Global’s decision follows similar moves by other companies in the mobile phone industry, who have chosen to shift production away from China to shore up supply chain resilience. The Chinese tech giant Foxconn is one example, as it recently announced that it would move some of its iPhone production to India.
The move follows various European countries introducing various incentives for phone-makers to bring manufacturing back closer to home. These incentives, particularly within the EU, tend to revolve around worker training, R&D investments and the availability of skilled local labor.
According to a statement from the company, HMD Global is currently in the process of selecting one or more European partners to help establish at least one European production line. As such, additional details regarding the move, including locations and timelines, are yet to be confirmed.
Speaking about the decision, Florian Seiche, CEO of HMD Global, said: “For reasons of agility, efficiency and supply chain resilience, we want to bring at least part of our phone production closer to home. Our ambition is to set up at least one new production line in Europe this year. This will strengthen our execution capabilities and help us to better serve our customers.”
In addition to the production move, HMD Global announced plans to invest in research and development facilities in Europe focused on 5G connectivity and artificial intelligence.
The announcement made by the company highlights the increasing trend for manufacturers to shift production away from Asia, following various global economic, political and supply chain risks. It remains to be seen if this strategy will help HMD Global maintain its competitive edge in the mobile phone market.
