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Plant Construction Cost in China

Easily Convert Construction Costs from USA to China

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About these Factors. Intratec Location (IL) Factors are used to convert investment estimates from the US to another country of interest. They are useful tools for cost estimation in a range of assignments, involving: investment analysis, multi-regional economic assessments, global relocation studies, international cost models and cost escalation.

How to Use this Index. Using IL Factors is Quick and Easy! See an Example Below:

Suppose you know that the investment for a given industrial plant in the US, in Q1 2008, was USD 190 million. However, you need to know how much the investment would be in China.

To convert investment estimates from USA to China, you just have to multiply the investment at Q1 2008 in USA (USD 190 million) by the ratio of IL Factor China at Q1 2008 (0.71) over the IL Factor USA at Q1 2008 (1), as expressed in the equation below:

Investment China at Q1 2008 = Investment USA at Q1 2008 * (IL Factor China at Q1 2008) / (IL Factor USA at Q1 2008)

By applying this equation, you would quickly learn that construction costs in Q1 2008 would be approximately USD 135 million.

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