|
|
 |
 |
|
|
|
|
Nokia Signs Licensing Agreement for Production of Cellular Phones in Brazil
February 05, 1996
Nokia Mobile Phones today announced a licensing agreement for the production of cellular phones in Brazil with Gradiente Electronica S/A , a leading technology innovator in Brazil's electronics industry. Under the licensing agreement, Gradiente will produce cellular phones under the Nokia brand name.
The five year agreement calls for expansion of Gradiente's existing production facilities, with investment in plant and equipment, and construction of a new factory dedicated to this operation. Nokia will provide the cellular phone design and software framework as well as technical support for the new factory. The new facility will produce cellular phones for Brazil. The site of the new factory has not yet been chosen.
According to recent information from the Brazilian Ministry of Communication, capacity for an additional 2 million new subscribers will be available this year. Eugenio Staub, President of Gradiente expects the cellular phone market to boom in 1997. "With the new cellular capacity, it will increase the existing base of 1.2 million subscribers by over 150%," he notes.
Kari-Pekka Wilska, President of Nokia Inc., said that the agreement is a real plus for Nokia and for the Brazilian consumer because it minimizes the impact of extensive tariffs which would otherwise be imposed on imported finished goods to Brazil. "With the growth expected in the Latin American market, this agreement will further strengthen Nokia's position as a leading cellular brand. We look forward to our continued relationship with Gradiente." Since 1993, Nokia has sold cellular phones to Gradiente for assembly in the Manaus free-trade zone.
Gradiente Electronica S/A is Brazil's second largest assembler of cellular phones. Founded in 1964, Gradiente entered the telecommunications market with a development and production contract for wireline telephones. Since 1993, when the first cellular networks began operating in Brazil, Gradiente has marketed its own brand of cellular phones and accessories. Gradiente had sales of over 319 million U.S dollars in the first three quarters of 1995.
| |
