PLANT LOCATION

PLANT LOCATION

The geographical location of the final plant can have strong influence on the success of an industrial venture . location designing is based on the organizations long term strategies such as technological , marketing resources availability , financial strategies and scope for future expansion. the location design should be taken very carefully as any mistake may cause poor location , which could be constant source of higher cost, higher investment difficult marketing and transportation , dissatisfied and frustrated employees and consumer , frequently interruption of production abnormal wasteges delays are substandard quality etc. 

the procedure for choosing a specific plant location can be presented in a series of required steps

SITE SELECTION

1. Raw materials 

2.Markets

3.Transportation facilities

4. Water supply

5. Environmental consideration

6. Availability of labor

7.Taxation and legal restrictions

8.Climate

9.Property cast

10. Fire protection

11. Site characteristics

RAW MATERIALS

The source of the raw material is one of the most important factors influencing the selection of a plant site . this is practically true if large volume of raw material is consumed because location need the raw material source permits considerable reduction in transportation and storage charges . attention should be given to the purchased price of raw material also

MARKETS 

The location of markets effect the cost of product distribution and the time requires for shipping proximity to the major markets is an important consideration in the selection of a plant site because the buyer usually finds it advantageous to purchase from nearby resources  it should be noted that the markets are usually needed for by products as well as for major final products

WATER SUPPLY

The process industry use large quantities of water for cooling washing and steam generation as raw material. the plant therefore must be located where a dependable supply of water is available . the level of existing water table can be check by consulting the state geological survey and information on the constancy of the water table and the air round capacity of local rivers or lakes should be obtained water supply shows seasonal fluctuation it may be desirable to construct a reservoir or to drill several standby wells 

ENVIRONMENTAL CONSIDERATIONS

No matter how advantageous a site location may be if a permit to build can't be obtained or the uncertainties in getting the necessary permits jeopardize the timing of the project then it may be necessary to choose another sitte , thus environmental consideration may be overall the most important site factor

AVAILABILITY OF LABOUR

The type and supply of labor in the vicinity of a proposed plant must be examined consideration should be given to prevailing pay scales restriction on numbers of hours worked per week , competing industries that can cause high turn over rates among the workers and variation in the skill and productivity of the worker

TAXATION AND LEGAL RESTRICTIONS

When considering taxes all types need to be considered , initial fees capital value cooperate personal income tax sales property tax unemployment workman compensation and nuisance tax suing the construction phase several types may be leveled t these include building permits especial fees assessment and civil connection fees

CLIMATE

If a plant is located in a cold climate cost may be increased by the necessity for construction of protective shelters around the process equipment . excessive humidity and extremes of hot and cold weather can have a serious effect on the economic operation of the plant and these factors should be examined when selecting the plant site

PROPERTY COST

Land cost in certain highly desirable petrochemical manufacturing areas can be high where as in more normal industries land costs are low where a lot of land is needed for feed and product storage the cost of the land can be significant plants also tend to locate away from areas where encroaching residential homes drive up the property cost

FIRE PROTECTION 

Protection from losses by fire is important factor in selecting a plant location . in case of major fire assistance from outside fire departments should be available 

fire hazards in the immediate surrounding in the plant sire must not be overlooked

SELECTION SITE

PAKISTAN REFINARY LIMITED KARACHI

REASONS

Easy approach to market

Raw material transportation cost decreases

Availability of labor 

Moderate climate