Kallasvuo to succeed Ollila as Nokia CEO

Rex Merrifield

HELSINKI: Finalnd's Nokia, the world's biggest mobile phone maker, said that Olli-Pekka Kallasvuo will take over as chief executive next year from Jorma Ollila, who becomes non-executive chairman.

Kallasvuo, who currently heads Nokia's biggest division, Mobile Phones, will take over as chief executive from June 1.

Ollila, 54, is seen as a corporate hero in his homeland, having headed the firm during its reinvention from being a diversified industry group producing rubber boots and cables to becoming the top mobile phone maker.

Nokia said in a statement Ollila, who has headed Nokia since 1992, would continue as chairman and CEO before moving to the non-executive position, to ensure an orderly transition.

Kallasvuo joined the company 25 years ago. He held the role of chief financial officer for some 10 years and took over as head of Mobile Phones in January 2004.

The company has not yet named a new head of the Mobile Phones division.

Earlier this year Ollila said he believed his successor should come from within the group and that discussions were expected on the position later in 2005.

"I remain strongly committed to Nokia and am keen to continue contributing to Nokia's strategy and renewal, helping it to build on its position as the undisputed leader in mobility," he said.

Nokia also announced that President Pekka Ala-Pietila would resign from the company with effect from Feb. 1, 2006.

Kallasvuo takes over that role along with the post of chief operating officer from Oct. 1 in the run-up to becoming CEO.

(Additional reporting by Tarmo Virki, Ott Ummelas, Laura Vinha and Arild Moen in Helsinki and Mikael Bjorner in Stockholm)