Modular factories reduce overseas investment costs and risk

Very interesting article on The Manufacturer website about Nestlé’s modular factories.  By using pre-assembled components, the company is able to set up a new factory in 12 months at a cost of £10m to £16.4m  This compares with the conventional bricks and mortar factory which  takes up to 2 years to construct and costs between £20m and £33m to build.  This means that the risk associated with entering a new country is reduced.  Moreover the modular factory can be disassembled and moved elsewhere if necessary.

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This entry was posted in Chap 04 Location and design, Chap 17 Internationalisation and CSR, Sector: Manufacturing and tagged , . Bookmark the permalink.

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