Brown Field Investment

What is 'Brown Field Investment'

Brown Field Investment is when a company or government entity purchases or leases existing production facilities to launch a new production activity. This is one strategy used in foreign-direct investment.

BREAKING DOWN 'Brown Field Investment'

The alternative to this is a green field investment, where a new plant is constructed.

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RELATED FAQS
  1. What is the difference between a green field and a brown field investment?

    Read about the advantages and disadvantages of pursuing green field or brown field investments in the foreign direct investment, ... Read Answer >>
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    Bond covenants can limit the amount of leases a company can have because leasing contracts are a form of debt. Taking on ... Read Answer >>
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