Guidelines for Plant Location Selection:

 Site Location - One of the most fundamental parameters needed to be considered in instituting
any Processing plant is the selection and acquirement of a site. To ensure that the chosen site
proposal Meets the company’s mission and vision, all portions, aspects and conditions in
selecting the optimal Site location should be considered. The following are the criteria needed in
choosing the optimum site location.
 Site Quality - With the aim of gaining an insight concerning the site’s current conditions,
preliminary surveying of potential land should be made. Having the knowledge about the current
conditions of the prospective land would allow us adjust and/or enable the processing plant
conditions to adapt with its surroundings including the accessibility of basic commodities such as
electrical power supply and stable water supply which will be used in operating a processing
plant.
 Topography - Acquiring knowledge about the topography of the proposed site location would
be necessary in order to help the processing plant improve its product as well as take in hand the
future concerns with regards to climatic conditions, socio-economic status, environmental
aspects and others. It deals with the physical characteristics of a particular land with distinct area
as well as other forms of land/or bodies of water that enfolds and/or surrounds it. These data are
usually acquired at Department of Environmental and Natural Resources (DENR) in addition to
the Local Authorities that manages the site.
 Soil Conditions - Identifying the current soil condition of a selected location will ascertain the
providence of the plantation and/or establishment which will be constructed over it. In aiding the
company’s decision on whether to pursue the selected site location or not, determine the soil’s
stability, resistance against erosion, relative location to fault lines, nutrient content for
agricultural processes, possible contaminants and the like. However, serious damage will be
inflicted when this aspect is neglected when selecting the optimal land to be used. To ensure that
the land to be utilized was able to meet the standards set by the Government and obtain
certificates and proof of compliance, departmental clearances concerning the land to be
examined should be considered.
 Climate - Climatic conditions like the annual rainfall occurrences, resistance to drought,
fluctuations of temperature in the region, cloud formations, wind directions and the like that
occur in a selected site location should be taken in to account. These information will be
significantly useful in determining or deciding which site location should be chosen for the
establishment of any processing plant.
 Flood Risks - Global warming has now been one of the foremost problem our environment is
facing and unfortunately is progressing along with time. This causes inevitable ozone depletion,
the scarcity of natural resources particularly the fossil fuels, rapid melting of ice caps, significant
increase of sea level causing floods, extensive deforestation worldwide and many other
disparaging forces that human generates which consequences to an immense damage to both the
environment and its inhabitants. The most frequent effect of global warming is the flood. People
around the world experiences flash floods which drains away establishments, vehicles, houses
and even lives so careful understanding of the flood risk present in a site location would mean a
lot to a company and can also make the investors decide and weigh their options between the
risks and benefits they could acquire if they will still pursue in establishing such plant in the
selected site. With this, help from government 37 agencies that specializes in weather conditions
can be helpful for any company in selecting site location.
 Site location comparison and selection - Optimal selection of land to be utilized for
establishing the proposed Phenol and Acetone Processing Plant is essential. Vigilant deliberation
is vital to be able to come to a decision properly on which plant location should be used. These
aspects determine the fate and success of the plant, its accessibility to the target market, close
proximity to the source of raw materials needed which in this case are benzene and propylene.
There are three prospective lands proposed and were subjected for further analysis and
deliberation.
Accessibility
The cost of the product is affected by the plant location. The plant should have suitable
access for the transportation of raw materials and must be close to these forms of transport:
road, railway, water, and air. The transportation expenses can be reduced if the supplier
and consumer of the product is considered.
• Availability of local workforce
Labor is an essential factor of production. The plant location must be accessible to the
skilled workforce such as engineers, technically qualified managers, and unskilled
workforce who are willing to be trained for the operation of the plant.
• Distance from local communities
Since phthalic anhydride is included in the Philippine Priority Chemical List (PCL), the
environmental impacts should also be considered. The plant must comply with the laws and
regulations and it must meet the safety requirements of the workers and the environment.
• Climate Conditions
PEZA registered Economic Zone
Philippine Economic Zone Authority (PEZA) is under the Department of Trade and Industry
(DTI). It is tasked to promote investments, extend assistance, register, grant incentives to,
and facilitate the business operations of investors in export-oriented manufacturing and
service facilities inside selected areas throughout the country. Being included in the PEZA
registered economic zone has advantages. One of which is having tax and duty free
importation of raw materials, capital equipment, machineries, and spare parts (DTI-PEZA,
2016)

From Deborja, Natividad Nerveza

Site Location. One of the most fundamental parameters needed to be considered in instituting any
processing plant is the selection and acquirement of a site. To ensure that the chosen site proposal
meets the company’s mission and vision, all portions, aspects and conditions in selecting the optimal
site location should be considered. The following are the criteria needed in choosing the optimum
site location.
Site Quality. With the aim of gaining an insight concerning the site’s current conditions, preliminary
surveying of potential land should be made. Having the knowledge about the current conditions of
the prospective land would allow us adjust and/or enable the processing plant conditions to adapt
with its surroundings including the accessibility of basic commodities such as electrical power supply
and stable water supply which will be used in operating a processing plant.
Topography. Acquiring knowledge about the topography of the proposed site location would be
necessary in order to help the processing plant improve its product as well as take in hand the future
concerns with regards to climatic conditions, socio-economic status, environmental aspects and
others. It deals with the physical characteristics of a particular land with distinct area as well as other
forms of land/or bodies of water that enfolds and/or surrounds it. These data are usually acquired at
Department of Environmental and Natural Resources (DENR) in addition to the Local Authorities
that manages the site.
Soil Conditions. Identifying the current soil condition of a selected location will ascertain the
providence of the plantation and/or establishment which will be constructed over it. In aiding the
company’s decision on whether to pursue the 69
selected site location or not, determine the soil’s stability, resistance against erosion, relative location
to fault lines, nutrient content for agricultural processes, possible contaminants and the like.
However, serious damage will be inflicted when this aspect is neglected when selecting the optimal
land to be used. To ensure that the land to be utilized was able to meet the standards set by the
Government and obtain certificates and proof of compliance, departmental clearances concerning the
land to be examined should be considered.
Climate. Climatic conditions like the annual rainfall occurrences, resistance to drought, fluctuations
of temperature in the region, cloud formations, wind directions and the like that occur in a selected
site location should be taken in to account. This information will be significantly useful in
determining or deciding which site location should be chosen for the establishment of any processing
plant.
Flood Risks. Global warming has now been one of the foremost problems our environment is facing
and unfortunately is progressing along with time. This causes inevitable ozone depletion, the scarcity
of natural resources particularly the fossil fuels, rapid melting of ice caps, significant increase of sea
level causing floods, extensive deforestation worldwide and many other disparaging forces that
human generates which consequences to an immense damage to both the environment and its
inhabitants. The most frequent effect of global warming is the flood. People around the world
experiences flash floods which drains away establishments, vehicles, houses and even lives so careful
understanding of the flood risk present in a site location would mean a lot to a company and can also
make the investors decide and weigh their options between the risks and benefits they could acquire
if 70

From Javier Palado and Saludo

they will still pursue in establishing such plant in the selected site. With this, help from government
agencies that specializes in weather conditions can be helpful for any company in selecting site
location.

Site location comparison and selection. Optimal selection of land to be utilized for establishing the
proposed Propylene Plant is essential. Vigilant deliberation is vital to be able to come to a decision
properly on which plant location should be used. These aspects determine the fate and success of the
plant, its accessibility to the target market, close proximity to the source of raw materials needed
which in this case are benzene and propylene. There are two prospective lands proposed and were
subjected for further analysis and deliberation.

Size Availability – With the goal of having an insight about the chosen site’s conditions, initial
measurement/observation of the possible land should be made. Having an idea of the size available,
the capacity can be adjusted.

Number of Qualified Workers– The cost of labor, amid plant development and plant operation,
is the greatest cost for most company. It is essential to consider if the zone for plant erection will
provide the most cost-effective, qualified labor. Local accessibility of competent labors will build the
productivity of maintenance and plant operation.

Availability of Raw Materials – The ease of obtaining raw materials from the suppliers should be
considered, especially since some of the raw materials should be sustained in some specific physical
conditions.

Accessibility to Target Market –The convenience of transporting the product will really be a
great factor especially that other target markets are located abroad. Such as the distance of the
location to the national highways, seaports and airports. Therefore, the accessibility to the target
market is likely to be one of the factors that will decide the success of the plant.

Utilities – The current condition of the utilities such as water supply and power supply will also be
a great factor to be considered since this manufacturing plant will require large amount of power and
water for it to function well.
From Catindig, Chavez, De Los Reyes and Garde
2.1.3. Geographical Area
SAMPLE FROM EVAN DULAY

South Point Light Science Park (Balayan

batangas)

Pros

 71.51km away from Manila (linear)

 200-ha industrial property Malvar
Cybergreen, Batangas
 Has a waste water treatment facility
 Close to a port ( or is a port )

Cons

 Located 336 km away from

Malampaya Gas Plant (linear, google)
 Plant must be less than 200-ha

South Point Light Science Park (Balayan

batangas)

Pros

 71.51km away from Manila (linear)

 200-ha industrial property Malvar

Cybergreen, Batangas

 Has a waste water treatment facility

 Close to a port ( or is a port )

Cons

1. Located 336 km away from

Malampaya Gas Plant (linear, google)

2. Plant must be less than 200-ha