Pharmaceutical Plant Location and Site Selection
The pharmaceutical industry is a major global economic force, which increasingly relies on the safe and efficient production of technically advanced products. As an entrepreneur, one of the most challenging tasks you might face irrespective of the nature of business you plan to venture into is the best site for your business, plant or factory. In this writeup we will be discussing pharmaceutical plant location, why you should make the right choice of plant location, factors you need to consider when choosing plant location, site selection as well as what you should consider when selecting a site for an enterprise.
What is plant location?
Plant location simply means the establishment of an industry at a particular place.
Why you should make the right choice of pharmaceutical plant location
The selection of appropriate plant location is important due to the following reasons:
- It partially determines your operating and capital cost.
- It fixes some of the physical factors of the overall plant designs such as heating and ventilation requirements, storage capacity of raw materials taking into consideration their local availability, transportation need for both raw materials and finished products, power needs, cost of labour, taxes etc.
- Each prospective location implies a new allocation of capacity to respective market area.
Factors you need to consider when choosing a plant location
Your choices of plant location should be guided by the following factors:
- Availability of raw materials – for regular supply and reduced cost of materials
- Nearness to potential market – determines transportation cost, affects overhead expenses and access to market information
- Constant power and water supply
- Availability of regular and cheap labour
- Good transport and communication network
- Suitability of land and climate
- Integration with other group of companies
- Availability of housing and other basic amenities
- Local building and planning regulation
- Environmental impact, waste disposal and safety requirements
- Cost of land and ease of expansion
Site selection for an enterprise
Once you have chosen a certain location for your plant, the next step is location analysis. Your choice of site is important both for objective and subjective reasons. The following points should be considered for the selection of the site
- It should be well connected with rail, road and river transports.
- There should be efficient sewage system for the disposal of water and waste materials
- The surroundings should be good and peaceful
- The sub-soil should be capable of bearing the load of the building plant and equipment.
- There should be sufficient land to meet the present as well as the future space requirements of the plant.
- There should be provision for parking (transport) and sufficient space for residential accommodation for staff.
It is worth noting that these factors listed above influence your choice of pharmaceutical plant location and site selection at varrying degree. The extent to which they affect your choice is greatly dependent on the nature and size of the proposed business or company.