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Nokia Networks and Scanfil Oy to increase cooperation

Nokia Networks and Scanfil Oy, a leading Finnish electronics contract manufacturer and system supplier, have signed an agreement according to which Scanfil will purchase Nokia Networks' manufacturing units located in Äänekoski, Central Finland. The agreement includes also the purchase of a manufacturing facility in Äänekoski. The agreement will come into effect on July 1st, 2000.

Nokia and Scanfil have been in cooperation since 1980's. This agreement will reinforce Scanfil's role as a supplier in Nokia's networked supply chain. Nokia Network's units in Äänekoski manufacture cabling and electromechanical units for telecommunications network products. Their operations will continue as contract manufacturers for Nokia.

The personnel at the Äänekoski manufacturing units, which total approximately 140 people, will transfer to Scanfil with existing pay and benefits.

"As a system supplier Scanfil wants to develop its manufacturing chain logistics and structure. The shift that started in the 1980's towards a larger share of contract manufacturing in the industry has given us the possibility to grow and develop. The Äänekoski manufacturing units will strengthen our position in an increasingly competitive and international operating environment," says Jorma Takanen, President of Scanfil.

"Two modern manufacturing units and skilled personnel will transfer to Scanfil. The aim for Nokia is a more simple and effective supply chain. According to our strategy, we will focus on our core competence areas and the share of contract manufacturing will increase," says Timo Luukkala, Head of Operations, Product Operations, Nokia Networks.

Scanfil Oy is mechanics and system supplier for electronics industry. Net Sales of Scanfil this year will be approximately 1 billion FIM and it will have more than 1000 employees in plants located in Sievi, Oulu, Paimio, Hollola, Vantaa and Äänekoski from the beginning of July 2000.

Nokia is paving the way to the Mobile Information Society with its innovative products and solutions. The company is the leading mobile phone supplier and a leading supplier of mobile, fixed and IP networks, related services as well as multimedia terminals. In 1999, Nokia's net sales totaled EUR 19.8 billion (USD 19.9 billion). Headquartered in Finland, Nokia is listed on the New York (NOK), Helsinki, Stockholm, London, Frankfurt and Paris stock exchanges and employs more than 56 000 people.

Further information:

Jorma Takanen,
President and CEO
Scanfil Oy
Tel. (Int.) + 358 400 283 037

Arja Suominen,
Vice President, Communications,
Nokia Networks
Tel. (Int.) + 358 9 5113 8193
Fax (Int.) + 358 9 5113 8199

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