Nestlé invents cheap, quick to assemble factory

The modular factory will be made of multiple, easy-to-assemble component sections and is intended to offer a flexible, simple and cost-effective solution for creating production sites in the developing world, the food giant said.

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

“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.”​

Risky​

Often, investing in these countries could be particularly risky for food and drink manufacturers, as they could lack infrastructure, reliable energy sources and building expertise, said the company, which is headquartered in Switzerland.

However, it claimed the modular factory concept would enable it to rapidly establish a footprint, creating local jobs and being closer to its customers and its raw materials.

The average Nestlé factory takes between 18–24 months and costs between CHF30M (£19.6M) and CHF50M (£32.6M) to build, it said.

Less than 12 months​

The new modular factory could be complete, and up and running, in less than 12 months, at a cost of between CHF15M (£9.8M) and CHF25M (£16.3M), it claimed.

The design was a further development of Nestlé’s current ‘box-in-a-box’ concept already used in countries with challenging conditions.

In these, an existing structure – such as a warehouse – is used as a shell structure and a simple factory built inside.

Step further​

The modular factory takes this a step further, using a series of purpose-built factory sections which can be brought, ready-to-use, directly to the site and connected to each other according to requirements. These could include, for example, a ready-to-use generator and boiler, a staff canteen and changing rooms for factory employees.

The factory can then be expanded, moved or its function transformed without having to start from scratch.

The modular factory concept focused on setting up simple processes like repacking and mixing dry goods such as Nestlé’s Maggi bouillon cubes, rather than creating more complex products.