Factory Site Consideration
Factory Site Consideration
The geographical location of the final plant can have strong influence on the success of an
industrial venture. Considerable care must be exercised in selecting the plant site, and many
different factors must be considered. Primarily, the plant should be located where the minimum
cost of production and distribution can be obtained, but other factors, such as room for expansion
and safe living conditions for plant operation as well as the surrounding community, are also
important.
The major factors in the selection of most plant sites are:
• Marketing Area
For materials that are produced in bulk quantities, such as cement, mineral acids, and
fertilizers, where the cost of the product per metric ton is relatively low and the cost of transport is
a significant fraction of the sales price, the plant should be located close to the primary market.
This consideration is much less important for low-volume production and high-priced products,
such as pharmaceuticals.
• Raw Materials
The availability and price of suitable raw materials will often determine the site location.
Plants that produce bulk chemicals are best located close to the source of the major raw material,
as long as the costs of shipping product are not greater than the cost of shipping feed. For example,
at the time of writing much of the new ethylene capacity that is being added worldwide is being
built in the Middle East, close to supplies of cheap ethane from natural gas. Oil refineries, on the
other hand, tend to be located close to major population centers, as an oil refinery produces many
grades of fuel, which are expensive to ship separately.
• Transportation Facilities
The transport of materials and products to and from the plant can be an overriding
consideration in site selection. If practicable, a site should be selected that is close to at least two
major forms of transport: road, rail, waterway (canal or river), or a sea port. Road transport is
increasingly used and is suitable for local distribution from a central warehouse.
Rail transport is usually cheaper for the long-distance transport of bulk chemicals. Air transport is
convenient and efficient for the movement of personnel and essential equipment and supplies,
and the proximity of the site to a major airport should be considered.
• Availability of Labors
Labor will be needed for construction of the plant and its operation. Skilled construction
workers are usually brought in from outside the site area, but there should be an adequate pool of
unskilled labor available locally, and labor suitable for training to operate the plant. Skilled craft
workers such as electricians, welders, and pipe fitters will be needed for plant maintenance. Local
labor laws, trade union customs, and restrictive practices must be considered when assessing the
availability and suitability of the local labor for recruitment and training.
• Water supply
Chemical processes invariably require large quantities of water for cooling, washing, steam
generation, and as a raw material, and the plant must be located near a source of water of suitable
quality. Process water may be drawn from a river, from wells, or purchased from a local authority.
• Energy Availability (power and fuel)
Power and steam requirements are high in most industrial plants, and fuel is ordinarily
required to supply these utilities. Consequently, power and fuel can be combined as one major
factor in the choice of a plant site. If the plant requires large quantities of coal or oil, location near a
source of fuel supply may be essential for economic operation. The local cost of power can help
determine whether power should be purchased or self-generated.
Electrical power is needed at all sites. Electrochemical processes (for example, chlorine
manufacture or aluminum smelting) require large quantities of power and must be located close to
a cheap source of power.
A competitively priced fuel must be available on site for steam and power
generation.
• Climate
Adverse climatic conditions at a site will increase costs. Abnormally low temperatures
require the provision of additional insulation and special heating for equipment and pipe runs.
Stronger structures are needed at locations subject to high winds (cyclone/ hurricane areas) or
earthquakes. Corrosive environments will need strong protection for the plant equipment.
The main storage areas should be placed between the loading and unloading facilities and the
process units they serve.
Storage tanks containing hazardous materials should be sited at least 70 m (200 ft) from the site
boundary.
A typical plot plan is shown in Figures (1) and (2).
Plant layout
The economic construction and efficient operation of a process unit will depend on how well
the plant and equipment specified on the process flow sheet is laid out.
The arrangement of the major items of equipment often follows the sequence given on the
process flow sheet: with the columns and vessels arranged in rows and the ancillary equipment,
such as heat exchangers and pumps, positioned along the outside. A typical preliminary layout is
shown in Figure (3).
The principal factors to be considered in making plant layout are: