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Homesick producers lose taste for going overseas

Richard Milne
Financial Times 8 June 2008


The FT says that a small but growing number of European companies that have moved production abroad are moving it back closer to home after being disappointed with the results and rising costs.

Says the FT:

'Jonathan Cooper-Bagnall, head of outsourcing at PA Consulting, highlighted the same trend but said companies were making better decisions about moving production abroad.

"A lot are going closer to home. One example is a company we advised in the West Midlands who concluded it was better for them to stay in the UK. Three or four years ago they may just have gone."

'Mr Cooper-Bagnall said company relocations were a complex matter, noting that Cobra Beer has recently opened a plant in India too. But he said companies may increasingly think about environmental issues when moving production abroad.'

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