Nokia sends Romanian factory to recycle bin: lower exports, weaker state budget, worried investors

Nokia, which has recenty announced its intention to close down its factory in Romania, was the fourth largest company in Romania based on turnover in 2010 and also the country's second largest exporter, after car maker Dacia, covering 7.8 percent of the exports. Its decision to leave Romania will most likely impact the country's economy and weaken other foreign investors' trust in Romania.

More news about Nokia Romanian PM counselor: Govt couldn’t have stopped Nokia’s factory shutdown Nokia closes down Romanian factory by end-2011 in restructuring move Romanian PM, before Nokia announcement: High risk of multinationals leaving Romania Nokia contributed to the state budget with EUR 21.8 million last year, while in the first eight months of the year, Nokia sent more than EUR 10 million to the state coffers. Nokia's exports covered around 7.8 percent of the country's exports last year, and the ration reached 9 percent in the first eight months of this year. In the first nine months of last year, Nokia had exported handset worth some EUR 750 million. According to the Avaron investment group, quoted by Reuters, the impact in the country's GDP is much lower, of some 0.25 percent, although its production in the Jucu factory covered 1.3 percent of the country's GDP. editor@romania-insider.com