MGT Group: Reconstructing the Supply Chain After a Cross-Border Factory Relocation

Established in 1945, MGT Group (MGT, or the Group) was headquartered in France. Its LSD factory was a well-known global engineering provider specializing in the design and manufacture of high-precision valves. At the end of 2007, MGT decided to transfer the LSD factory in France to its Fuzhou factory in China. Two people were put in charge of this project: Kevin Lurton, vice-chief operations officer of MGT Control Systems Division, and Jian Li, the general manager of MGT Fuzhou Company. Lurton and Li faced a series of challenges, ranging from the need for strategic planning to the need for an implementation policy for supply chain reconstruction during this cross-border factory relocation. Amid the tide of globalization, enterprises are already able to extend their footprint to every corner of the world. For many multinational enterprises, transferring a product line, or even a whole factory, to another country has become a key step toward globalization.