25 Jan 2020

Manufacturing Footprint Optimization: Plant Closure

Background

  • As part of a global restructuring of business units, a multinational chemical company was closing one of their Chinese production facilities.
  • EWA engaged as Project Leader with responsibility for closure implementation.

Approach

Six months prior to plant closure
  • Closure strategy (budget, timing, expenditures, government relations, etc.)
  • Defined implementation team (Operations, HR, Legal, Security, IT, etc.)
  • Development of communication plans (staff, government, external, etc.)
  • Security risk assessment (employee unrest, physical & IP assets theft, etc.)
Three months prior to plant closure
  • Implementation of operational and protective security measures
  • Finalized equipment & inventory disposition, decommissioning plant, etc.
  • External stakeholder negotiations (governmental agencies, landlord, etc.)
  • Obtain approvals from business zone, governmental authorities, etc.
  • Identification of compliance and payment issues, severance packages
Upon plant closure and after
  • Finalization of equipment disposition and plant demobilization
  • Filing government documentation in keeping with the registration, business license, board resolutions
  • Filing of all necessary financials, bank accounts, tax, VAT rebates, registered capital and customs documentation
  • Competition of all de-registration and governmental documentation and plant turnover to the landlord

Results

  • No theft of IP assets, physical violence or governmental authority repercussions
  • 100% of employees signed employment forms
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