Situation
Objective: Decentralization of production from China to Europe: Implementation of a new production unit in the Europe, Middle East and Africa zone in order to readjust the occupancy load of the Chinese plants and expand the regional B2B market.
Challenges/scheduling
Selection of various location options and selection of the best geographical alternative according to geopolitical stability, taxation, labor costs, subsidies, geography, as well as criteria of the degree of economic development.
Establishment of a new supply chain, logistics and local and external suppliers. Retaining the existing customer portfolio and creating a new customer panel to ensure an increase in sales.
Simultaneous product management and process management, leading to the dimensioning of Industry 4.0, adapted to the local conditions, personnel, real estate and the target market for car – truck – after market products.
Negotiations with Real Estate, Moroccan Ministry of Industry and legal support for the establishment of a legal entity.
Total period: 1.5 years
Sustainable result
The new Supply Chain & Operations capabilities together with multi-stakeholder partnerships enable the creation of a complete business plan that leads to profit maximization.
Conclusion
An investment of €5 million, supported by collected subsidies / cost savings thanks to commercial and governmental agreements confirms the achievement of an EBIDTA of 15% after 5 years and a profitability of 3 years to guarantee a turnover of €50 to 100 million / year and achieve the objectives of discharge based on a profitability rare in Europe.
