Costs, administration plant site

The terms production site, factory and plant are in many cases used synonymously but in the context of chemical production networks they have a distinct meaning. A site/factory is the geographical location where production takes place. Within the site, one or more plants produce different kinds of products. Additionally, a chemical production site contains several infrastructure units. In contrast to other industries, site infrastructure does not only comprise services such as security, internal logistics, maintenance, canteens and site administration but also utility plants and waste treatment facilities (cf. Fig. 9). For the 50 sites operated by the industrial cooperation partner the share of total costs associated with site infrastructure was in line with industry averages of 15% to 20% as reported by Rasch (2006, p. 257). 

The cost of administration reflects higher salaried support and management staff, as well as services such as insurance and site taxes. These costs will vary widely depending on the location of the plant and whether it is a stand-alone operation or part of an industrial complex. 

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