Ancillary establishment

Definition 1

An ancillary establishment produces services (in exceptional cases also goods such as additives and materials) mainly for the enterprise or an enterprise-type unit itself. Ancillary activities are nearly always a prerequisite for performing principal and secondary activities. The industry of the ancillary establishment is defined according to the principal activity it serves.

Ancillary establishments can be e.g. the head or district office or other such administrative office, a separate transport unit, a repair shop for the enterprise's own vehicles, a warehouse or a data processing unit. If such functions take place in the same establishment as normal production, they are usually not considered to be ancillary establishments.

In regional and industrial statistics on manufacturing also a power plant linked to an industrial establishment producing energy for the establishment or enterprise and a separate research and development unit linked to an industrial establishment are regarded as ancillary establishments.

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Definition 2

An ancillary establishment is located separately from the actual production activity of an enterprise and only produces services (not goods) for the enterprise itself. Examples of ancillary establishments include head offices, warehouses or repair shops for the enterprise's own vehicles. An ancillary establishment does not have turnover or has very little of it relative to its personnel.

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