greenfield investment


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greenfield investment

the establishment of a new manufacturing plant, workshop, office, etc. by a firm. Greenfield investment is undertaken by a ‘start-up' (i.e. new) business and by existing firms as a means of expanding their activities (see ORGANIC GROWTH). Establishing a new plant may be preferred to inheriting existing plants through takeovers and mergers (see EXTERNAL GROWTH), because it gives the firm greater flexibility in choosing an appropriate location (see INDUSTRIAL LOCATION). It enables it to build a scale of plant most appropriate to its operations and to install modern manufacturing processes, techniques and work practices, thus avoiding, for example, various problems associated with the rationalization and reorganization of existing plants and the removal of restrictive labour practices. See MARKET ENTRY, BARRIERS TO ENTRY.

greenfield investment

the establishment of a new manufacturing plant, workshop, office, etc., by a firm. Greenfield investment is undertaken by a ‘start-up’ (i.e. new) business and by existing firms as a means of expanding their activities (see ORGANIC GROWTH). Establishing a new plant may be preferred to inheriting existing plants through takeovers and mergers (see EXTERNAL GROWTH) because it gives the firm greater flexibility in choosing an appropriate location. It enables it to build a scale of plant most appropriate to its operations and to install modern manufacturing processes, techniques and work practices, thus avoiding, for example, various problems associated with the rationalization and reorganization of existing plants and the removal of restrictive labour practices.

See MARKET ENTRY, BARRIERS TO ENTRY, FOREIGN DIRECT INVESTMENT

References in periodicals archive ?
Palisoc, however, said MPIC is also eyeing greenfield investment or building a hospital from the ground up.
However, under the Greenfield investment category, the company will import 100 vehicles before 2019.
Cemdag Lighting Europe is the new Greenfield investment of 5 million euros to open 100 jobs in the Bunardzik technological and industrial development zone.
The value of announced greenfield investment projects reached an estimated $571 billion, a 32pc decrease from the previous year.
LAHORE -- Hyundai Nishat Motor Private Limited (HNMPL) is a greenfield investment which will set up a cars assembly plant for Hyundai brand vehicles including cars and light commercial vehicles in M3 Industrial City, Faisalabad.
India was ranked number 1 in the world in 2016 in greenfield investment.
As in previous quarters, greenfield investment outstripped brownfield investment, and increasing M&A signifies growing investor confidence, said the quarterly EY 'Power transactions and trends' report.
He further added that Category-A Greenfield investment status was recently granted to four auto investors including Nishat Motors Pvt Ltd, Kia Lucky Motors Pakistan Ltd, Regal Automobiles Industries Ltd, and United Motors Pvt Ltd.
Greenfield investment expenditures--expenditures for investments to either establish a new U.
The Ministry of Industry and Production allowed United Motors Private Limited, Kia-Lucky Motors Pakistan Limited and Nishat Group to set up units for assembly and manufacturing of vehicles under the Greenfield investment category, Ministry of Industries Secretary Khizar Hayat Gondal said.
Qatar is the eighth larger recipient of greenfield investment from Lebanon, receiving 1.
The first one was Greenfield Investment and the second one was Brown field Investment.