Site selection activity for a greenfield steel plant Apr03

Site selection activity for a greenfield steel plant...

Site selection activity for a green field steel plant The site-selection process is conducted to identify possible sites for a proposed green field steel plant and to compare their relative merits based on various criteria. The selection of a suitable site is a very critical activity. The decision of site selection is very important since the investment is very large and it influences the economies of the area very much. It is a strategic decision that cannot be changed once taken. The changes in selected site can be done only with a considerable loss of time and money. Normally the final site selection is done after evaluating several sites. Factors affecting site selection process The site selection process has become increasingly complex because of the plethora of environment laws and regulations as well as the greater public awareness and involvement in various issues influencing site selection. In present investment atmosphere, site selection issues are characterized by their multi objectives and numerous stake holders. To appreciate the complexity of the selection process, the factors influencing the site selection issues are described below. Numerous possible sites – There is possibility that a large number of possible sites may be available which can satisfy the selection criteria to varying degree. Contradicting objectives – There can be contradictions in some of the objectives. For example the objective of keeping minimum capital investment may contradict with the objective of keeping a long term safe environment.. Intangible objectives – These are the objectives which cannot be quantified. Diversity of Interest groups – Investment decision at a particular site may impact several public groups who may have diversity of interest. The groups not satisfied with the investment decision can create problem. Value tradeoffs – Decisions regarding value tradeoffs especially among multiple...