Originally Posted by
BlackPeter
Just having another look at the announcement ...
OK - so this newcomer intends to build a plant sized like Highbrook. Admittedly one of the larger MPG plants, but still only one out of seven.
The newcomer might find that not all building projects and factories are delivered on time and under budget - and they will need to go through a start up phase much more intense that MPG had to do with its updated plants. Remember - the competitor starts with a greenfield and no trained staff in New Zealand.
But yes - I agree: buying MPG might be the cheapest option for them if bulls price dreams come true ... in this case they would get seven modern and operational factories close to their established customer base for probably twice the price they might need to pay for their one new greenfield development in Hamilton without customers and far away from most of their potential customers.
Just remember - there are two things which matter for glass: short supply lines (transport is expensive) and fast delivery.