I NDUSTR I AL BU I LDI NG SOLUT ION
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— Industrial Vertical Profile Manufacturing industry lifecycle
Greenfield vs. Brownfield investments
GREEN FIELD INVESTMENT
BROWNFIELD INVESTMENTS
Companies that want to expand their interests internationally generally make physical investments and purchases in another country. This is known as foreign direct investment (FDI). They purchase, lease, or otherwise acquire assets in their host country including facilities such as plants, office space, or other types of buildings. These acquisitions may come in the form of new or existing facilities.
In a greenfield investment, parent company opens a subsidiary in another country. Instead of buying an existing facility in that country, the company begins a new venture by constructing new facilities in that country. Construction projects may include more than just a production facility. They sometimes also entail the completion of offices, accommodations for the company's staff and management, as well as distribution center.
Brownfield investments, on the other hand, occur when an entity purchases or leases an existing facility to begin new production. Companies may consider this approach a great time and money saver since there is no need to go through the motions of building a brand new building.
Investors Coonstruct New Facility
Redevelops existing facility
Requires more time
Requires less time
Doesn't require cleanup cost
Cleanup costs are incurrent
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