Importance of Plant Location (Chemical Engineering-Basic Chemical Engineering)
Chemical Engineering
Basic Chemical Engineering
Importance of Plant Location
The plant's location can have a significant impact on a project's profitability and expansion potential. It's a crucial factor in a company's performance, and it necessitates in-depth examination for both new and existing businesses or plants. The location of a new company or plant is critical to its success. Because the primary goal of every business is to maximise profits, which can be accomplished by growing sales or lowering production costs. If a company is located near a potential market, it will have a better and more up-to-date understanding of the market and will be able to develop more effective production and marketing tactics to boost sales. When a company is located in an area where all types of production economies in terms of input elements are available, cost of production can be reduced.
Factors influencing on plant location
When choosing a plant location, much attention must be taken and many various considerations must be considered. The facility must be located in a location that provides the lowest cost of production and delivery, but other criteria such as flexibility for expansion and safe living conditions for plant employees, as well as the neighbouring community, are also vital. The final site should be chosen after a thorough examination of the benefits and drawbacks of various geographical areas and, finally, the benefits and drawbacks of accessible real estate. The following are some of the most important elements to consider while choosing a proper plant location:
1-Area of marketing:
The factory should be positioned close to the primary market for materials that are produced in bulk quantities, such as cement, mineral acids, and fertilizers, where the cost of the product per tonne is relatively low and the cost of transportation is a large fraction of the sales price. For low-volume production (high-priced products), such as pharmaceuticals, this factor will be less essential.
2-Raw materials:
The choice of the site is frequently determined by the availability and pricing of acceptable raw materials. Bulk chemical plants are best positioned near the source of the principal raw material, which is also close to the selling area.
3-Transport:
When choosing a location, the transportation of materials and products to and from the plant will be the most important factor to consider. If possible, choose a location near at least two main modes of transportation: road, rail, waterway (canal or river), or a sea port. Road transportation is becoming more popular, and it is well suited to local distribution from a central warehouse. Rail delivery of bulk chemicals over great distances will be less expensive. For the transportation of workers, vital equipment, and supplies, air transport is convenient and efficient, and the site's proximity to a major airport should be considered.
4-Labor availability:
Construction and operation of the plant will necessitate labour. Although expert construction workers will often be brought in from outside the site region, there should be an enough team of unskilled labour and manpower suitable for training to operate the plant available locally. Plant maintenance will necessitate the use of skilled tradespeople. When evaluating the availability and acceptability of local labour for recruitment and training, local trade union conventions and restrictive practises must be taken into account.
5-Utilities (services):
These services, which include water, fuel, and electricity, are typically provided by a central facility.
WATER:
Chemical processes typically use considerable amounts of water for cooling and general process purposes, and the facility must be located near a good source of water.
The cooling water necessary at some sites can be obtained from a river, lake, or the sea, or purchased from a local government.
ELECTRICITY AND FUEL:
Most industrial plants have significant power and steam requirements, which necessitate the use of fuel to meet these needs.
Power, fuel, and steam are necessary to run various equipment such as generators, motors, turbines, plant lighting, and general use, and hence should be regarded one of the most important factors in plant location selection.
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