Multi-locational Manufacturing Organisations and Plant Closures in Urban Areas

Plant closure is one way in which a multi-locational firm can restructure the spatial organisation of its production system. In many cases, a firm has to select for closure one of a number of plants undertaking similar activities in different urban areas. This investigation draws upon some new data derived from face-to-face interviews with managers of a sample of large UK firms. The study outlines some of the key characteristics of the closure decision itself and illustrates the sensitivity of analyses of plant closures to both the time-period of the investigation and to the corporate context in which the closure decision is taken. Organisational structure, corporate geography and the market position of a firm all affect the outcome of the analysis.