Elcoteq to Build a New Plant in St. Petersburg, Russia

The Board of Directors of Elcoteq Network Corporation announced its plan to build a new plant in St. Petersburg, Russia.  Construction of the plant, with an area of 14,700 square meters (158,000 square feet), is expected to begin in the final quarter of 2004, and to be in operation in the fall of 2005.

"From 2005 on we will need more production capacity for mobile phones and communications network equipment.  This investment program will safeguard our service capability to European customers, and at the same time it will strengthen our position as the number one communications technology electronics manufacturing services company in the fast growing Russian market," said Mr Jukka Jäämaa, Executive Vice President at Elcoteq.

The investment in land and construction will total approximately MEUR 15 (18.6 million USD). The machinery and equipment needed will be determined by the type of products, production volumes, and timing of product programs.  When operating at capacity the plant is expected to employ about 1,500 people.

Elcoteq has operated a manufacturing plant in St. Petersburg since 1997.  It currently employs 170 people.