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.

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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