Setting Up An Overseas Steel Plant

Introduction:

The purpose of this report is to analyze the factors related to setting up a new steel plant in China.

Findings:

The first factor to be considered is that the plant will be closer to the source of raw materials, therefore reducing the logistics costs. Second, the average wage of workers is considered to be reasonably lower near the unit. Last but not least, the overheads costs are much cheaper than in other countries.

Conclusion+Recommendations:

Based on the above findings, it is felt that setting up a plant in China will fulfill our key requirements and will be profitable for the company. However, the trade war issues may affect the progress and should be taken into considerations.