Growing mobile penetration in the Asia-Pacific region is expected to be a major contributor to the global mobile subscriber base surpassing the two billion mark in 2006, said the company in a statement issued here.

"India's position at the heart of a rapidly growing mobile communications region makes it an attractive option for establishing our new manufacturing facility," said Pekka Ala-Pietilä, president of Nokia.

"The factory would be an integral part of our global manufacturing network and help fulfil growing demand as mobile communications become increasingly affordable and available to more people in this diverse region," he said.

Nokia plans to invest nearly $100-150 million along with its key suppliers over the next four years once the final investment decision is made.

It will gradually ramp up the factory and the work force is expected to reach 2,000 employees when production reaches full scale.

"The final investment evaluation process is ongoing and is likely to be completed during the first quarter of 2005," said the company.

Nokia currently has nine mobile device manufacturing facilities around the world. In India, Nokia has sales, marketing, customer care, and research and development operations.

--Indo-Asian News Service