Plant location and site selection

The location of the plant can have a crucial effect on the profitability of a project, and the scope for future expansion. Many factors must be considered when selecting a suitable site, and only a brief review of the principal factors will be given in this section. Site selection for chemical process plants is discussed in more detail by Merims (1966) and Mecklenburgh (1985) see also AIChemE (2003). The principal factors to consider are  

For materials that are produced in bulk quantities such as cement, mineral acids, and fertilisers, where the cost of the product per tonne is relatively low and the cost of transport a significant fraction of the sales price, the plant should be located close to the primary market. This consideration will be less important for low volume production, high-priced products such as pharmaceuticals. 

In an international market, there may be an advantage to be gained by locating the plant within an area with preferential tariff agreements such as the European Community (EC). 

The availability and price of suitable raw materials will often determine the site location. Plants producing bulk chemicals are best located close to the source of the major raw material where this is also close to the marketing area. 

The transport of materials and products to and from the plant will be an overriding consideration in site selection. 

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The primary siting factors which influence the selection of a plant location are as follows environmental considerations, labor avadabihty and productivity, raw material avadabihty, proximity to market, property cost, accessibdity to transportation, tax iacentives, electric power avadabdity and cost, and living conditions. 

Although the source of raw materials may not be at the plant site, it is an e.xtremcly important factor in the ultimate location of the plant. Process development work and economic studies will indicate the minimum standards for raw materials selection. When these standards have been determined, all possible sources of acceptable raw materials can be located and a detailed analysis can proceed. 

Liston (Ref. 27) provides useful checklists for equipment and building siting and layout for safety purposes, as well as other safety-related criteria for plant design. These checklists address economic considerations and facility geographical location, site selection, layout, and unit plot planning factors. 

Location Must be located in an area at some distance from the plant proper. This is necessary for air supply considerations and because of problems associated with fogging and drift from discharging air. Noise considerations also tend to dictate site selection. Can be built adjacent to plant buildings, on centers 1.5 (d) where d = base diameter, so that piping costs are reduced. Their position must be chosen so as not to interfere with power plant exhaust plumes. 

A preliminary determination of the plant layout enables consideration of pipe runs and pressure drops, access for maintenance and repair and in the event of accidents and spills, and location of the control room and administrative offices. The preliminary plant layout can also help to identify undesirable and unforeseen problems with the preferred site, and may necessitate a revision of the site selection (Section 5.1). The proposed plant layout must be considered early in the design work, and in sufficient detail, to ensure economical construction and efficient operation of the completed plant. The plant layout adopted also affects the safe operation of the plant, and acceptance of the plant (and possibly any subsequent modifications or extensions) by the community. 

The additional capacity requires construction of a new plant. In this case location alternatives both within the value chain s existing network and outside this network have to be considered. Thus, a network design phase is required in all cases and a site selection phase if alternatives outside existing sites are to be considered. 

The network design phase already determined the countries where plants should be located or closed. Thus, site selection takes place within an individual country. As the location factors pertinent to the site selection phase are different from those used in the network design phase, the first step again is to establish the relevant location factors. These are mostly of qualitative nature but also include quantitative factors such as local factor cost differences, property and construction costs. Findings from industrial location science (cf. Chap. 2.2.2) can be used as a starting point to define the location factors, but industry-, company- and project-specific factors... 

The evaluation process has to lead to a rank ordering of the alternative sites and a recommendation of where to locate the plant. Evaluation methods proposed in the context of site selection can broadly be grouped into... 

Flood and fire protection. Many industrial plants are located along rivers or near large bodies of water, and there are risks of flood or hurricane damage. Before selecting a plant site, the regional history of natural events of this type should be examined and the consequences of such occurrences considered. Protection from losses by fire is another important factor in selecting a plant location. In case of a major fire, assistance from outside fire departments should be available. Fire hazards in the immediate area surrounding the plant site must not be overlooked. 

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