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Thousands Protest Nokia Plant Closing



BOCHUM, Germany -- Thousands of people marched through this west German city Tuesday to protest Nokia Corp.'s decision to close a factory, and a German official warned the move could weigh on Nokia's image and business.

On the same day, the world's largest cell phone maker announced the launch of two new handsets for emerging markets, where it said an increasing number of people share handsets _ or want to.

Police estimated 15,000 people took part in the demonstration in Bochum, in the industrial Ruhr region.

German Chancellor Angela Merkel, who said in an interview on NDR Info radio Tuesday that she had spoken with Nokia management, called the closure plan "a bitter decision for employees in Germany."

"We will do what is in our power to help people as far as we can," Merkel said.

The plant closure, which likely will result in the loss of 2,300 jobs, was announced last week and has infuriated German unions, as well as politicians.

The head of Germany's IG Metall industrial union, Berthold Huber, told protesters that Nokia managers should reverse their decision "if they have a shred of decency."

"Nokia has an image to lose _ and not just an image, but also business," said Hartmut Schauerte, a deputy economy minister who has led the German government's response. "This is not how we deal with each other in Germany."

Schauerte said the government hopes to change Nokia's decision.

Nokia has cited the German location's lack of competitiveness as the main reason for closing the plant and said labor costs in Bochum were nearly 10 times those at a Nokia plant in Romania. But that point has irked officials in the region, who argue that labor accounts for a small proportion of overall manufacturing costs.

Nokia leaders met Monday with representatives of the Bochum plant and German unions, and further talks are planned, the company said.

In Finland Tuesday, Nokia Corp. unveiled the Nokia 1209 and Nokia 2600. They will be available within six months and cost about $50 and $95, respectively. The 2600 has a radio and a camera, and the 1209 offers up to 80 languages.

The Espoo, Finland-based company has increasingly concentrated on emerging markets. It has predicted growth of more than 15 percent _ the highest in the global cell phone market this year _ in Asia, the Middle East and Africa.

In a Nokia survey, more than half of respondents in India and Pakistan said they share or would share a cell phone with family and friends. In Vietnam, the corresponding figure was almost 30 percent, Nokia said.

Nokia employs some 130,000 people worldwide.

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