Boohoo invests in automation for UK manufacturing
Boohoo is still handling the fallout from the Leicester factory scandal, but it’s already exploring one alternative way to manage its supply chain and keep production in the UK — automation.
The company has reportedly acquired a site in Leicester and has plans to turn it into a garment factory that uses state-of-the-art technology.
The former car dealership is on a two-acre site and was for sale at £3 million, with Boohoo buying it last month. The existing building covers around 27,000 sq ft, The Times reported.
The newspaper report said Boohoo plans to turn it into an automated factory. The firm currently makes around 40% of its products in Leicester and it’s unclear how much of this production the new site would be able to handle.
Neither Boohoo nor the agent selling the site have confirmed the e-tail giant’s involvement.
Only recently the company reiterated its commitment to manufacturing in the UK and automation could be one way to continue this without falling foul of social distancing or minimum wage rules. While automated factories require the kind of investment only the largest businesses are able to make, Boohoo certainly has the resources required. It continued to prosper during the lockdown and also raised hundreds of millions of pounds in new funding to allow it to invest in business opportunities.
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