Nokia Could Pay EUR1.8M For Land At Romanian Plant In Jucu - Official

Finnish telecom giant Nokia is looking to buy a 90-hectare plot of land in Romanian northwestern locality of Jucu, where it opened a plant earlier this year.

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Nokia will pay EUR2.1 per square meter of land (over EUR1.8 million total), which is located in the Tetarom III industrial park, Tetarom’s manager Viorel Gavrea said Wednesday.

“As to Nokia’s intention to buy the 90-hectare plot of land in Tetarom III Park, I believe it to be a normal development. The sale price, as agreed under the memorandum, is of EUR2.1 per square meter,” Gavrea told a press conference.

According to Gavrea, there have been several voices, including in the European Union, to sustain the land should be sold to Nokia following an evaluation procedure.

Gavrea mentioned that this would not be a good solution on the backdrop of the economic downturn, and that the Romanian authorities could end up giving the land to Nokia for nothing.

“I fear that if we were to conduct an evaluation we won’t get 2 euros (per hectare) because of the economic crisis. Nokia might demand we give the land free of charge, because nobody else wants it and it is in our best interest to mobilize ourselves, to keep the existing investors, to offer them very good conditions,” Gavrea said.

Gavrea said Nokia’s investment in Jucu brings significant revenues to the local public administration. In addition, Nokia created 2,000 jobs, with thousands more being developed in nearby plants built by various investors.

The local authorities voted to capitalize another 4.5 hectares of land in Nokia Village area, meant for general investments.

“We will have four facilities: a clinic for labor medicine, commercial areas, a hotel and a proficiency school, where Nokia will train its future employees,” Gavrea said.

Tetarom also mulls leasing additional 35 hectares of land in the industrial park, meant for production activities, as well as carrying on negotiations with Nokia to sign the lease contract for the 90-hectare plot of land, ahead of selling the land to the mobile phones manufacturer.

Tetarom reported turnover of EUR2 million in 2008.

(MEDIAFAX news agency provides the recording of statements made by SC Tetarom SA manager, Viorel Gavrea. To access the Audio Service, go to www.news.mediafax.biz)

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