The decision of the industrialists to sell or rent the factory to foreigners may be due to financial constraints, risk reduction, focus on the core of the main business, access to technology and know-how, use of existing infrastructure, and financial and tax facilities
Selling or leasing a factory to a foreign company can help artisans reduce the risks associated with operating a factory. These risks may include issues related to production, marketing, distribution, employment, and local laws and regulations. By handing over the factory to a foreign company, the industrialists may be able to benefit from the expertise and experience of that company in managing and operating the factory and reduce the related risks. Governments and financial institutions can provide special financial and tax facilities to foreign companies to attract and encourage them to invest in the country. Industrialists may take advantage of these facilities and financial and tax discounts by selling or renting a factory.
If the foreign company purchasing the plant is not financially successful or faces financial difficulties, it may affect their ability to operate and develop the plant. In this case, industrialists should do the necessary research and investigations on the financial support and financial performance of the foreign company to ensure its stability and financial strength. Political developments and laws and regulations of the destination country can have a direct impact on the activity of the factory purchased by the foreign company. Sudden changes in financial, commercial, labor, energy, environmental and other fields policies may affect the factory and affect the ability to produce and operate.
By handing over the factory to the foreign company, the artisans may gain access to new and more advanced technologies and processes. But at the same time, these technologies may reach the destination country through the purchase of the factory by the foreign company and thus affect the competition of the domestic market. The foreign buyer company may face financial problems or may not have the necessary financial ability to operate and develop the factory. This can lead to non-payment of rent or sales installments, payment delays or even factory shutdown. Before making the transaction, you must ensure the financial support and ability to pay the foreign buyer.
Cooperation with foreign buyers may come with cultural and language challenges. Cultural differences, management styles and language differences can lead to a lack of correct understanding of the needs and expectations of the other party and, as a result, create problems in communication and cooperation. Establishing a factory requires high capital and strong financial resources. Industrialists may be inclined to sell or lease their factories to tap foreign financing or attract foreign investment. This could be due to financial constraints, lack of access to sufficient financial resources, or inability to maintain capital to build and operate a plant.
Artisans may focus on their core business activities and avoid the responsibilities and costs associated with running a factory. By selling or leasing the factory, they can focus more on developing and improving their core business. Selling a factory to a foreign company can enable artisans to access more advanced technology and know-how. These technologies and technical knowledge can improve the quality and efficiency of production and thus increase the competitiveness of the business.
Industrialists may decide to exploit existing infrastructure in other countries. These infrastructures can include transportation networks, industrial parks, free zones, and energy and water infrastructure. By selling or leasing a factory, industrialists can take advantage of existing infrastructure in other countries and reduce the cost and time required to build new infrastructure.
The decision of the industrialists to sell or rent the factory to foreigners may be due to financial constraints, risk reduction, focus on the core of the main business, access to technology and know-how, use of existing infrastructure, and financial and tax facilities. Renting and selling workshops and factories to foreign buyers may involve some risks. Handing over a factory to a foreign company may cause security risks. This includes access to technologies, strategies, processes and confidential information, and even infringement of intellectual property rights. If there is sensitive information in the factory, manufacturers need to create the necessary guarantees to keep their information and technologies safe from foreign buyers.
