Soon after Finland-based Nokia announced to close its factory in Bochum, Germany, the North Rhine-Westphalia state government demands US$ 92 million in subsidies plus interest from the world-leading mobile phone maker. Nokia reportedly used US$ 63 million of that amount build the factory it now intends to close.

The North Rhine-Westphalia Bank wants the cash by March 31. According to the state economy ministry, Nokia failed to meet its condition of creating enough jobs since 2002. Nokia promptly denied the claims, saying the company "not only fulfilled the conditions of the agreement, it exceeded them."

Around 2,300 employees are expected to be laid off when Nokia's factory in Germany closes. While 6% of Nokia's handsets come from that area, the factory accounted for 23% of Nokia's global labor costs. And because of the unusual outweighing of fund input versus product output, Nokia decided to shut its doors.