Nestlé creates modular factories for developing world

Nestlé has revealed plans for a modular factory that can be built in half the time that it takes to build a conventional factory - and for half the cost.

Made of multiple easy-to-assemble component sections, the modular factory is designed to offer a simple, cost-effective solution to creating production sites in the developing world.

“The model is a real evolution from the traditional bricks and mortar factories of the past,” said Alfredo Fenollosa, Nestlé Technical Head for Asia, Oceania and Africa.

“Big companies traditionally build solid stuff but the lighter structure of this modular factory concept represents a real mindset change for Nestlé. We hope to be able to apply it soon in countries in Africa, and in some parts of Asia.”

The average Nestlé factory costs CHF30 to CHF50 million and takes 18 to 24 months to build. Nestlé says the modular factory could be completed and operational in less than 12 months, for CHF15 to CHF25 million.

The modular factory takes Nestlé’s ‘box-in-a-box’ concept, which uses an existing structure as a shell with a simple factory built inside, and takes it a step further. A series of purpose-built factory sections can be brought ready to use directly to the site and connected to each other according to requirements.

The factory could then be expanded, moved or changed without having to begin from scratch. The modular factory concept is designed to industrialise simple processes like repacking and mixing dry goods such as Maggi bouillon cubes, rather than creating more complex products, Nestlé says.