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A chemical plant is being designed that will be capable of producing vaccines for use in potential future pandemic events. The plant will be built in the UK. It is projected to have a manufacturing capacity of 100 million vaccine doses per year. A similar plant was built in India in 2012 that produced 25 million doses/year at a capital cost of (in pounds) $30 million.
(a) Estimate the capital cost of the new plant. Explain your method and any assumptions you make, including how your method demonstrates the concept of economy of scale.
(b) Assuming the above estimate was acceptable at this stage, describe briefly what would be the next cost estimation step and what further information would be required to improve on the precision of the cost estimate.
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