Case Interview Questions #00064: Your client Corn Products International (NYSE: CPO) is an Illinois-based corn feed company that refines and processes corn-based food additives and sweeteners. Corn Products International has eight manufacturing plants located in the Midwest. These eight plants service the entire United States. Recently, their plant in Ohio is in need of refurbishing and they have hired you to help them with it. The company has four possible options:
1. Refurbish the existing plant
2. Build a larger plant at the current location
3. Build a similar size plant at a new location
4. Build a larger plant at a new location
Which is the best option for your client Corn Products International?
There are two issues to this decision. The plant size and the plant location should be considered separately.
1. Size of Plant
First consideration is the demand for the product.