Nokia, the world’s largest mobile phone manufacturer, is to close a factory in Germany and cut approximately 2,300 jobs in an effort to shift production to locations with lower costs. The company said in a statement today that the factory in Bochum, western Germany, is scheduled to close by the middle of this year. Production will be moved to more competitive plants in Europe, Nokia said, without elaborating further or commenting on costs for the shutdown.

Nokia has European plants in Finland, Hungary and Britain, and is building a new site in Romania. Last month the company decided to move some production lines from Finland to South Korea because of labour shortages. Analysts believe the move has been driven by Nokia’s desire to stay ahead of competitors Samsung and Motorola without sacrificing profit margins at a time when mobile phone prices are falling.