Question

Difference between greenfield and brownfield

Answer 1

There are several reasons why a company opts to build its own new facility rather than purchase or lease an existing one. The primary reason is that a new facility offers the maximum design flexibility and efficiency to meet the project's needs. An existing facility forces the company to adjust based on the present design.- Greenfield

The clear advantage of a brown-field investment strategy is that the building is already constructed. The costs of starting up may be greatly reduced. The time devoted to construction can be avoided as well.

If the existing national or municipal government requires licenses or approvals, the brown-field facility may already be "up to code." In cases where the facility previously supported a similar production process, brown-field investments can be a real coup for the right company.- brownfield