Spatial growth and spatial rationalization in multi-plant enterprises

This paper analyses the spatial growth and rationalization behaviour, over a six year period, of a representative sample of 64 multi-plant enterprises in the United Kingdom textile and clothing industries, and illustrates the findings with case studies. The companies which expanded outside their home region for the first time, did so as frequently by long distance growth as by short distance, and by opening branch plants as well as by acquiring firms. By far the most common spatial rationalization policy was plant closure combined with concentration of production on an existing site. A new concept of activity locations is proposed as a useful tool for designing and assessing spatial rationalization policies.