PLANT LOCATION

The location of a plant is essential in the profitability of the plant and also the possibility of future
expansion. Appropriate siting of plant increases the economic value of the plant. This is done by taking
advantage of the following factors;

CHOICE OF LOCATION

The factors to be considered in siting a plant are;

1. Closeness to marketing area

2. Raw material supply (Natural gas)
3. Transport
4. Availability of labor
5. Availability of utilities (Water, Energy, Fuel)
6. Availability of suitable land
7. Environmental impact (disposal of effluent)
8. Local Community Considerations
9. Climate
10. Political and Strategic Considerations

The proximity of the raw materials to the plant is highly important. Natural gas, which is the main raw
material, is to be taken from Atuabo Gas Plant in the western region. Siting the plan close to the raw
material will increase the rate of production and will also make the raw material readily be available in
case of emergent need.

As much as possible, the plant should be sited close to the target market and to make itself readily
available to its market niche. The market niche for acetic acid are school laboratories, pharmaceutical
companies and also production of vinegar so the plant should be sited near an educational institution.

Transportation forms part of the major expenses in the day-to-day operation of the plant. The plant
must be close to at least two major forms of transportation. Road, rails, port (for overseas export) and
air transport are available forms of transport in Takoradi.

Labor, utilities and land are readily available in industrial parts of Takoradi.

Proper disposal of effluent will be adhered to according to the local regulations.

 COMPARISON BETWEEN FOUR POSSIBLE LOCATIONS

FACTORS TEMA TAKORADI TARKWA KUMASI

PROXIMITY TO RAW 70% 90% 80% 60%

MATERIALS

PROXIMITY TO 80% 80% 70% 80%

MARKET

AVAILABILITY OF 60% 70% 80% 70%

LABOUR

AVAILABILITY OF 50% 70% 70% 80%

LAND

TRANSPORT 80% 90% 60% 60%

POLITICAL AND 50% 70% 70% 70%

STRATEGIC
CONSIDERATIONS
AVAILABILITY OF 80% 70% 70% 60%
UTILITIES

Considering four (4) main locations; Tema, Takoradi, Tarkwa and Kumasi, mainly because of their
proximity to the market, Takoradi (Nyanikrom) was selected. Nyanikrom is an industrial area in Takoradi.
Since it is in Takoradi, getting raw materials from Ghana Gas (also in Takoradi) will be easier and the
community is mainly for industrial purposes so the local community regulations will be adhered to. Also,
it is in the Shammah district which has good facilities (schools, hospitals, recreational centers etc.) for
the labor (employees) the plant.