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 ?
The Philippines performed better in terms of destination for announced greenfield investment projects.
The new auto policy for 2016-21 has offered benefits to new players, including many tax exemptions, under the Greenfield investment status, if the companies set up local assembly plants before June 2021.
We have applied to the Board of Investment (BoI) for category A greenfield investment status under the Auto Development Policy (ADP) 2016-21.'
Qatar made investments in 25 outbound projects in 2018, according to a report based on the fDi Markets database of the Financial Times, which tracks greenfield investment projects.
Corridor and the largest greenfield investment project ever undertaken
Lucky Cement also shared progress on its brownfield expansion for cement production of 2.6 million tons per annum at its Pezu Plant and the greenfield investment project for producing 1.2 million tons of clinker at Samawah, Iraq.
In this way, we save time and money compared to a greenfield investment in North America, where the market is currently undergoing rapid growth."
They said that giving sales tax exemption on imported plant and machinery for greenfield industries would encourage greenfield investment and industrialization.
can not extend Greenfield investment project status to any of the existing three Japanese car assemblers including Pak Suzuki Motors.
The company's new factory is the second greenfield investment of ABB Group in Petrich area and company's fifth factory in Bulgaria.
Post the announcement of Auto Development Policy 2016-21, United Motors secured the category-A Greenfield investment status for automobile assembly and is said to have subsequently pumped in $18.1 million in the industry.
It examines major trends in global trade since the 2015 Commonwealth Trade Review and the performance of the Commonwealth in intra-Commonwealth trade and investment, with special attention to the role of greenfield investment, or new capital investment, in intra-Commonwealth investment flows; the Commonwealth's role in promoting trade multilateralism and limiting trade protectionism, and the increased influence of regional economic integration across the Commonwealth; the key impact of technology and global trade in Commonwealth experiences in using new technologies for trade; and the role of trade governance in influencing trade, investment, and the costs of trade in the Commonwealth.