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Cleaning Out Your Factory for the Last Time

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There are times when you have to close down operations. Whether it is to retrench or to consolidate operations, you may need to close down a factory. However, you don’t simply lock a factory up. You want to maximize your value out of it. Here are some tips on what you should be doing to ensure your factory closes in your favor.

Handle the employees

The first issue that you will handle is that of your employees. Closing a factory is going to affect a lot of livelihoods. Depending on the reason, it can cause a lot of bad feelings among your workers. The best way to approach this is, to be honest about the closing. Announce it ahead of time and do your best to help your workers adjust. It allows if you can reassign them to your new location, but this might not be possible. Be accommodating as much as possible to ensure the closing is smooth.

Dispose of the equipment

A factory or manufacturing plant will have a lot of industrial equipment. Your main option with these is to either sell them to other companies or scrap them and send them to a metal recycling center. It all depends on their condition and age. A lot of industrial equipment is very durable and can last for years. However, the current market might find them obsolete. If you find interested buyers, they will want to check on the condition of the equipment. For older items, you may have to scrap them. You can earn quite a bit depending on how much metal you can get from them.

Ensure proper transfer of responsibilities

A factory is an integral part of a supply chain. Depending on your industry, you likely have customers that rely on it to provide materials and supplies. Leaving them without a supplier can be bad for your reputation in the business, so you should be taking steps to ensure there is no disruption in the supply chain. For example, contact them months before the closure and ensure they get supplies from your other factories, or you refer them to others.

Prepare the facility for sale

Even with all the equipment gone, several things are still necessary for proper closure. First, there are the utilities. You have to turn them off with the provider. While future owners might decide to restart them, they may also choose to demolish the facilities and start fresh. Second, you must ensure to empty everything, especially if there are hazardous materials. Gas and chemicals can go wrong if left alone for a long time. Better to move them to another facility or sell them off. Finally, clean things up so the building is clean when you leave.

Final thoughts

Fully closing a factory is not going to happen overnight. It would help if you prepared for it to do it right. Lay down the plans and take note of the steps above so that you do a full closure properly.

Image: https://unsplash.com/photos/6xeDIZgoPaw

Abel Eino
the authorAbel Eino