Explain five factors to be considered in the location of cement industry?
Question: Explain five factors to be considered in the location of cement industry?
The location of cement industry depends on several factors that influence its profitability and sustainability. Some of the important factors are:
- Availability of raw materials: Cement is mainly made of limestone, clay, gypsum and fuel. These materials should be available in sufficient quantity and quality near the plant site to reduce the transportation cost and ensure the quality of the product.
- Proximity to market: Cement is a bulky and low-value commodity that requires a large volume of sales to cover the fixed costs. Therefore, it is preferable to locate the plant close to the major consumption centers or regions with high demand and growth potential.
- Access to transport and infrastructure: Cement industry requires a well-developed transport network to distribute the finished product to the customers and receive the raw materials and fuel from the suppliers. The plant should also have access to reliable sources of power, water and communication facilities.
- Environmental and social impact: Cement industry is one of the major sources of air pollution, greenhouse gas emissions and waste generation. It also affects the land use, water resources and biodiversity of the surrounding area. Therefore, the plant should comply with the environmental regulations and standards and adopt measures to minimize its negative impact on the environment and society.
- Government policies and incentives: The location of cement industry is also influenced by the government policies and incentives that affect its viability and competitiveness. These may include tax benefits, subsidies, tariffs, regulations, land acquisition, licenses, etc. The plant should consider the legal and political factors that may affect its operation and profitability.
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