I've been trying to figure out just how much a manufacturing plant for FBR would actually cost. My workings below are just guesstimates and may be well off, but I think its worth a discussion on HC nonetheless.
FBR are located at 122 Sultana Road, High Wycombe, WA 6057 with a Workshop area 1,400 sqm or 15,069 square foot.
Page 16 of the Half Yearly Report had Property Plant and Equipment costs at $836,748 spent in the preparation of the Hadrian X commercial prototype builds. This equates to $597.67 per Sq m ($836,748 / 1,400 sq m = $597.67), or $55.53 per square foot ($836,748 / 15,069 sq foot= $55.53 sq ft).
Kenworth trucks have a manufacturing plant in Bayswater spread over 56,000 square feet (5,202.5702 Square Metres), roughly 3.72 times the space of the current FBR site. From the 5th of July 2013 to the 8th of December 2017, they built 10,000 Kenworth trucks at that plant within 1,617 days, with 6.18 Kenworth's being built per day (10,000 / 1,617 days = 6.18 per day).
It's fair to assume that to achieve this kind of output there is a fair amount of robotics and automation in place and this would have taken considerable lead time to have this developed and put in place.
To calculate the cost for mass production I think a reasonable basis would be to use a car manufacturer.
BMW has a manufacturing plant in South Carolina that cost 4.83 billion dollars since it opened it 1994. The total plant size is 5,000,000 square foot giving a total cost per square foot at $966 ($4,830,000,000 / 5,000,000 square foot = $966 per square foot), or 464,515.2 Square Metres at $10,397,94 ($4,830,000,000 / 464,515.2 Sq Metres = $10,397,94).
Assuming FBR were to be the size of the Kenworth manufacturing plant in Bayswater Victoria at 56,000 square feet we can calculate the FBR plant to cost $54,096,000 using the BMW plant as a reference/3 (56,000 Kenworth sq ft x $966 BMW Plant sq ft cost = $54,096,000). Add to this figure the manual FBR process per square foot $3,109,680 (56,000 sq feet x $55.53 = $3,109,680) to a total cost of $57,205,680 ($54,096,000 + $3,109,680 = $57,205,680).
The figures above are of course guesstimates, and welcome others thoughts/corrections on my calculations ;-)
FBR Price at posting:
18.0¢ Sentiment: Hold Disclosure: Held
