Motorola Mobility, owned by Google
Inc., has decided to indefinitely suspend operations at its phone
assembly and packaging unit in Chennai. The move was part of the
company's effort to streamline global supply chain.
The
closure will come into effect from February next year and is expected
to affect 76 employees. The Chennai unit was started in 2008 with an
investment of Rs.172 crore.
"Yesterday we started informing our 76
employees of our plans to suspend operations as of end February, 2013.
We have no current or forecast production requirements that would
require the continued use of our Chennai facility," The Hindu quoted
William Moss, director for communications in Asia Pacific, Motorola
Mobility, as saying over phone.
"However, we want to stress that
our other centres in India will continue to operate. We are working with
our colleagues to settle all dues, provide relief packages and to help
them find other opportunities."
The announcement about the Chennai unit comes a day after Google announced that Singapore-based Flextronics
would acquire Motorola's manufacturing operations in Tianjin, China,
and would also assume the management and operation of its Jaguariuna,
Brazil, facility. Employees and assets at both locations will transfer
to Flextronics after the transaction closes.
The agreement between
Motorola and Flextronics also includes a manufacturing and services
agreement for Android and other mobile devices. The companies expect to
complete closing activities by the first half of 2013.
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