What factors need to be considered when selecting a site for a production facility?

PLANT LOCATION AND SITE SELECTION

The geographical location of the final plant can have strong influence on the success of

the industrial venture. Considerable care must be exercised in selecting the plant site, and

many different factors must be considered. Primarily the plant must 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 location of the plant can also have a

crucial effect on the profitability of a project.

The choice of the final site should first be based on a complete survey of the advantages

and disadvantages of various geographical areas and ultimately, on the advantages and

disadvantages of the available real estate. The various principal factors that must be

considered while selecting a suitable plant site, are briefly discussed in this section. The

factors to be considered are:

1. Raw material availability.

2. Location (with respect to the marketing area.)

3. Availability of suitable land.

4. Transport facilities.

5. Availability of labors.

6. Availability of utilities (Water, Electricity).

7. Environmental impact and effluent disposal.

8. Local community considerations.

9. Climate.

10. Political strategic considerations.

11. Taxations and legal restrictions