Nestlé develops new modular factory concept to create production sites in developing countries

Switzerland-based food manufacturer Nestlé has created a blueprint for a new type of modular factory that can be constructed in half the time of a traditional one, at up to 50%-60% of the cost.

The new factory design features multiple, easy-to assemble component sections, and is designed to offer a cost-effective solution for creating production sites in the developing world.

The modular factory concept has been developed to industrialise simple processes like repacking and mixing dry goods such as Maggi bouillon cubes, rather than creating more complex products.

The modular factory concept will be applied in countries which lack infrastructure.

In these countries, the concept will help the company to rapidly establish a footprint and create local jobs, bringing it closer to its customers and raw materials.

Nestlé noted that it takes between 18 and 24 months and costs between CHF30m ($33.5m) and CHF50m ($55m) to build one of its regular factories, while the new modular factory can be completed in less than 12 months with a cost of between CHF15m ($16.7m) and CHF25m ($28m).

The design is said to be a further development of Nestlé’s ‘box-in-a-box’ concept, in which an existing structure such as a warehouse is used as a shell structure and a simple factory is built inside.

Nestlé Asia, Oceania and Africa technical head Alfredo Fenollosa said the model is an evolution from traditional bricks and mortar factories.

"Big companies traditionally build solid stuff but the lighter structure of this modular factory concept represents a real mindset change for Nestlé," Fenollosa added.