European site selection for a new production plant

Assignment

What is the optimal location for a new production plant in Europe?

Project summary

BCI conducted a fact-based and unbiased location comparison for the new manufacturing plant of this company in Europe.

Our approach

The location selection approach of BCI has been applied fully in this project. After a kick-off phase in which the project profile (size of the investment, labor profile, real estate requirements, manufacturing technology and potential air and water waste limitations, etc.) was defined an initial high-level longlist analysis has been conducted. This was done at a country level including countries in Western, Central and Eastern Europe.

The outcome of this first assessment was the decision to focus the site selection further on Poland, Hungary, Romania, Bulgaria, Serbia and Macedonia. In the next phase, using a detailed set of cost, quality and risk factors a comparison was made of relevant regions within these six countries. Based on this deep dive the five best regions were selected in two remaining countries: Romania and Macedonia. These regions have been visited by a BCI team conducting in-depth interviews with recruiters, investment agencies, real estate agents and visits to actual candidate plots.

During the visits all data were validated and a recommendation was made to the client on which regions to visit together with the client’s team. These joint visits were done with representatives from all relevant functions in the client’s organization. BCI has also supported the company in the negotiations regarding the investment incentives and tax deductions package.

Result

Realization of a new successful manufacturing plant in Macedonia.