The Relocation of Riordan's China Plant

739 Words3 Pages
Riordan's China Plant Relocation Executive Summary Riordan Manufacturing's China plant is focused on the manufacturer of electric fans and related products. The Hangzhou (China) facility was developed as a joint venture between Riordan and a Chinese partner who had experience operating in the region. The Chinese partner was able to help Riordan to develop this facility by finding labor, communicating with the local vendors, governments, and regulatory agencies as well as being contributing capital to the project. The Riordan team has provided management and operational guidance to the Chinese partners in the joint-venture. The team originally chose the Hangzhou location because of the proximity to the Qiantang River and its tactile advantage of allowing the facility to use the river for transportation needs. The original location was also well suited to procure raw materials and was in close proximity to many regional suppliers. However, as the factory's operations continued to grow, using containers to transport goods from Hong Kong and Shanghai has become a more feasible option. Thus moving the facility will provide a more cost effective logistics solution. The management team has concluded that a new location in Shanghai would make the organization more competitive in the long run. The move would allow the company better access to key logistic networks and increase its distribution capacity throughout Asia and Europe. Therefore, a new Shanghai location project
Open Document