Building New Factory vs Upgrading Existing Production

Greenfield thin-wall factory investment breakdown for a 4-line operation: land and building (1,500-2,500 m2) $200,000-500,000 depending on region, 4x HWAMDA SPV5 machines (HMD 400M8-SPV) $340,000-400,000, 4x 8-cavity molds with hot runners $140,000-220,000, 4x IML robots (SWITEK) $100,000-160,000, auxiliary equipment (chillers, dryers, conveyors) $140,000-280,000, utilities infrastructure (power, water, compressed air) $50,000-120,000, cleanroom or food-grade environment modifications $30,000-80,000, and commissioning/training $20,000-40,000. Total: $1,020,000-1,800,000. Upgrading an existing facility: 2x HWAMDA SPV5 machines to start $170,000-200,000, 2x molds $70,000-110,000, 2x IML robots $50,000-80,000, auxiliary modifications $40,000-80,000, floor reinforcement and utility upgrades $20,000-50,000, and layout modifications $10,000-30,000. Total: $360,000-550,000. The upgrade path requires 55-70% less capital but delivers only 50% of the production capacity, making cost-per-unit-capacity roughly equivalent.

Thin-wall molding has specific utility demands that often exceed existing general-purpose molding facilities. Electrical: each HWAMDA SPV5 cell (machine + robot + auxiliaries) requires 120-180 kVA at 380-440V 3-phase. A 4-line factory needs 480-720 kVA total transformer capacity, plus 20% reserve for future expansion. Existing factories with 200-300 kVA service require $20,000-50,000 in electrical upgrades. Cooling water: 4 production cells need 320-600 L/min total cooling water flow at 10-15°C and 3-5 bar pressure. A central chiller system (80-120 kW) with cooling tower costs $25,000-50,000 for greenfield versus $15,000-30,000 to supplement an existing system. Compressed air: IML robots and mold functions require 400-600 L/min of dry, oil-free air at 6-8 bar per cell. A 4-cell factory needs a 75-110 kW screw compressor with refrigerated dryer ($15,000-30,000). Floor loading: HWAMDA SPV5 machines weigh 12-25 tons. Floor must support 5-10 tons/m2 point loading. Many existing facilities require floor reinforcement ($30-80/m2) costing $5,000-15,000 for the production area.

Food packaging production demands environmental controls that general-purpose molding shops rarely have. ISO 22000 certification (required by many food brand customers) mandates documented pest control, air quality management, personnel hygiene protocols, and material traceability. New factories can integrate these from design: sealed production area with positive air pressure, HEPA-filtered air supply delivering ISO Class 8 (100,000 particles/m3) environment, epoxy-coated floors and walls for cleanability, separate material receiving and finished goods areas preventing cross-contamination, and handwashing stations with interlocked door access. Cost premium for food-grade new construction: $20-40/m2 ($30,000-80,000 for a 1,500 m2 facility). Upgrading existing facilities to food-grade standards is possible but challenging: sealing gaps and openings ($5,000-15,000), installing HVAC filtration ($10,000-25,000), epoxy floor coating ($15-25/m2), and documentation/certification ($5,000-15,000 for ISO 22000). BRCGS Packaging certification, recognized by global food brands, costs $5,000-15,000 and requires 6-12 months to achieve.

Greenfield 4-line factory producing 8-cavity yogurt cups at 4.5s cycles generates 25,600 cups/hr across 4 machines, or approximately 184 million cups/year at 85% OEE. At $0.02-0.03 margin per cup, annual gross profit is $3.7-5.5 million. With $1.0-1.8 million investment, payback period is 3-6 months. Upgraded 2-line operation produces 92 million cups/year, generating $1.8-2.8 million annual margin on $360,000-550,000 investment, with payback in 2-4 months. The upgrade path shows faster ROI due to lower capital requirement but limits scalability. Key financial risks: greenfield projects tie up capital for 8-14 months before generating revenue, while upgrades generate cash flow within 3-6 months. Market risk is also lower with the upgrade approach since commitment can be scaled back if demand projections prove optimistic. For markets with established demand (Middle East dairy, Southeast Asian food service), greenfield investment is justified. For new market entry or unproven products, the phased upgrade approach offers lower risk with comparable per-unit economics. HWAMDA supports both approaches with turnkey line packages and can stagger equipment delivery to match phased installation schedules.