Nokia 2014 Annual Report Download - page 41

Business overview
39NOKIA IN 2014
Production of mobile devices
Until the closing of the Sale of the D&S
Business, Nokia operated a total of eight
production facilities with the purpose of
production and customization of mobile
devices. The production facilities were located
in Manaus, Brazil; Beijing and Dongguan,
China; Komárom, Hungary; Chennai, India;
Reynosa, Mexico; Masan, Republic of Korea
and Hanoi, Vietnam.
Following the closing of the Sale of the D&S
Business, Nokia’s manufacturing facilities
transferred to Microsoft with the exception
ofthe manufacturing facilities located in
Chennai, India and Masan, Republic of Korea.
In India, our manufacturing facility is subject
to an asset freeze by the Indian tax authorities
as a result of ongoing tax proceedings and
was not transferred to Microsoft as part of
theSale of the D&S Business. It continued to
produce devices under contract for Microsoft
following the close of the Sale of the D&S
Business production, however, was suspended
in November 2014 due to a lack oforders.
Inthe Republic of Korea, Nokia and Microsoft
agreed to exclude the Masan facility from
thescope of the transaction, resulting in
Nokia closing the site in 2014. None of these
facilities is subject to a material encumbrance,
with the exception of the mobile devices
related facility in Chennai as tax authorities
inIndia have placed a lien on this facility
prohibiting Nokia to transfer this facility.