ANALYSIS FOR PLANT BUILDING IN TE U.

K OR IN CHINA

1. Objectives

The purpose of this report is to evaluate what would be the best location to build an industrial
plant.

Specific objectives

Evaluate production costs of china and United Kingdom.

2. Finding
a) A production worker in the UK can cost to 30 per hour, whereas a production worker in
china costs only 2 per hour
b) The land costs in China reach up to one million dollars while in the United Kingdom it
would reach 10 million dollars
c) For the supplier’s, moving to china will reduce delivery times by 45 minutes.
d) Firstly, there is the question of recruitment. If we locate the new plant in China, we will
have serious problems with finding the skilled workers we need for the production line.
In the UK, by contrast, we can train new workers with our existing staff.
e) The quality would be very high since all the points are close and the most efficient
services.
f) If we move to china, there will be no comunication between two department, this will
seriously damage our ability to develop new products.

3. Recommendations
I recommend the different options, we have concluded that we are in favour of China.
This is because to lower costs and delivery times.