Nokia  the world’s top cellphone maker, saidon Tuesday it plans to close its plant in Bochum, Germany, by mid-2008 and may cut up to 2,300 staff as it moves production to lower-cost regions.

The Finnish company claims that due to “market changes and increasing requirements for cost-effectiveness,” it can no longer afford to keep its presence in Germany, which is represented by a facility in Bochum. Along with the factory, the Bochum site also plays host to buildings such as research and development labs, which Nokia hopes to sell to one or more parties. The company says it is already in negotiations with India’s Sasken Technologies, in this regard.

Nokia announced its plan to set up a mobile phone plant in Romania in March last year, investing 60 million euros ($89 million).