Tuesday, January 15, 2008

Germany is Attractive for International Businesses - Nokia's Decision Regrettable

BERLIN, January 15 /PRNewswire/ -- From the viewpoint of international investors Germany is one of the most attractive business locations worldwide. The most recent surveys of international executives as well as studies of internationally renowned consultancies show this statement to be true. In addition, today's published data on Germany's strong growth proves that Germany has a competitive business climate. In this context, Nokia's decision to close its factory in Bochum is particularly regrettable.

Today Nokia announced that it was planning to end production of portable end devices in Germany. Michael Pfeiffer, managing director of Invest in Germany, Germany's inward investment promotion agency issued the following statement regarding Nokia's decision:

"Nokia is making a business decision about its future production locations in Europe. However, we very much regret this decision especially as Germany has won the favour of international investors in the past years. For example, most recently a survey of top executives published in the economics newspaper Handelsblatt showed that Germany is the most competitive location in Europe, and is only behind China in a worldwide comparison. Germany scores very well in areas such as Research and Development (R&D), workforce qualification, and logistics. According to the consultancy Ernst & Young, these are the most commonly named factors that influence investments. Of course 'off-shoring' or 'out-sourcing' are not new phenomena. There is, however, another side to this development: The outsourcing of production allows for important investments to be made in R&D and correspondingly the employment of highly qualified employees. Both international and German firms are focusing on this combination and are consciously choosing Germany as their location for high-tech investments."

In a 2007 study, Ernst & Young investigated the attraction of Europe as an economic location. The results of this study make it clear that Germany is the leading investment location in Europe according to international executives.

Today's published numbers from the federal statistics office also show a comprehensive and positive investment climate in Germany. In 2007 Gross Domestic Product (GDP) grew by 2.5% over 2006. Business both inside and outside of Germany contributed to this growth; the 8.4% increase in business investments in 2007 versus 2006 was especially notable.

Media Contact: Eva Henkel Invest in Germany, Phone: +49-30-200099-173 Fax: +49-30-200099-111 Email: henkel@invest-in-germany.com http://www.invest-in-germany.com

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