PLANT LOCATION

The provinces of Laguna, Batangas and Pampanga are considered by the

researchers as their plant location. The continuous flow of raw materials is a vital factor in
choosing the most suggested location plant construction. Furthermore, these provinces
have industrial parks that are permitted by government law to construct industrial plants
making them most suitable for any industrial manufacturing operations.
Three alternative plant locations will be discussed in this section which are according
to the following factors: 1) Availability of Raw Materials; 2) Proximity of Market; 3) Availability
of Energy Sources; 4) Climate; 5) Transportation; 6) Water Supply; 7) Labor Supply; 8) Site
Characteristics; 9) Community Factors

Factors in Plant Location Selection

Availability of Raw Materials
Sources of raw materials are one of the most important factors to be considered in
the selection of the plant site. It permits significant reduction in transportation and storage
facilities.
Proximity of Market
The location of markets or intermediate distribution centers affects the product
distribution costs and the time required for shipping. The consumers usually find it
advantageous to purchase from nearby sources.
Availability of Energy Sources
Power and steam requirements are in high amount in most industrial plants, and
normally fuel is used and it is necessity to supply these utilities. The local costs of water and
power help determine whether power should be paid for through power distributors or selfgenerated.
Climate
If the plant is located in a cold climate, costs may be increased by the necessity
for construction of protective shelters around the process equipment, and special cooling
towers or air conditioning system may be required if the prevailing temperature are high.

Transportation
Bodies of water, railroads, and highways are the common means of transportation
used by major industrial concerns. If possible, the plant site should have access to all three
types of transportation; certainly, at least two types should be available.
Water Supply
The process industries use large quantities of water for cooling, washing, steam
generation, and as raw material. The plant must be located where a dependable supply of
water is available.
Labor Supply
Consideration should be given to prevailing pay scale, restrictions on number of
hours worked per week, competing industries that can cause dissatisfaction or high turnover
rates among the workers, and variations in the skill and productivity of the workers.
Site Characteristics
The topography of the tract of the land and the soil structure must be considered,
since either or both may have a pronounced effect on construction costs. The cost of the
land is important as well as local building costs and living conditions.
Community Factors
If a certain minimum number of facilities for satisfactory living of plant personnel do
not exist, it often becomes a burden for the plant to subsidize such facilities.

Plant Location Selection

OPTION 1 LAGUNA
Location
Laguna is situated 54 kilometres (34 mi) south
of Manila.
Climate
With average rainfall hitting around 100
millimeters per month. Wet season usually comes in
June and December, while the dry season comes in
January until May. Rainfall is highest in June and July.
Labor force and employment
According to the latest census the NCSO, Laguna City population of 822,628 people
which the population growth rate of 2.16% and population density of 2,540/km 2. Labor
employment our mostly in business and it is oriented towards non-agricultural lines and is
rated one of the most productive work forces in the country.
Telecommunications Facilities
Telecommunication facilities, broadband and wireless internet connections are
available and are provided by some of the country's largest telecommunication companies.
Power and Water Supply
The city mostly gets its power from an interconnection grid-power. There are also
coal-fired power plants, though these have been controversial due to their environmental
impact. Another coal-fired power plant is nearing completion and is envisioned to make the
city independent from the interconnection grid once completed. And also Water is readily
available to use.

OPTION 2 BATANGAS
Market
Sugar is a major industry. As a matter of
fact, after the Hacienda Luisita, the country's former
largest sugar producer, was broken-up for land
reform, the Municipality of Nasugbu has been the
home of the current largest sugar producing
company, the Central Azucarera Don Pedro. This

also means that Batangas is also a home for a wide industry of sweets. Rice cakes are also
a strong industry.
Being near the sea, it is only expected that fishing plays a very important part of
the Batangan Economy. Although Batangas has already lost its distinction as Asia's largest
producer of coffee, this industry is still thriving, especially with the boost of coffee shops all
over the country, one of which is Cafe de Lipa.
Climate
The climate of Nasugbu falls under the first type of classification, Type I,
characterized by two pronounced seasons: Dry season from November to April and wet
season for the rest of the year. The annual average temperature in the municipality is 27.3
degrees Celsius. January is the coolest month having an average temperature of 25.8
degrees Celsius, while April is the warmest month registering an average temperature of 29
degrees Celsius.
Transportation
Travel distance from Metro Manila is about 102 kilometers via Tagaytay City.
From Batangas City (the provincial capitol), its distance covers about 70 kilometers.
Labor Supply
Population: 98, 558 (May 2000)
No. of Families: 19, 748
Size of families: 4.99
Site Characteristics
The municipality of Nasugbu is located in the coastal areas (Western tip) of the
province of Batangas with a bearing of 14 degrees 04 latitude and 120 degrees longtitude.
The coastal municipality of Nasugbu is bounded on the north by the municipalities of
Maragondon, Magallanes, and Alfonso (Cavite); on the east by the municipalities of Laurel,
Calaca, and Balayan (Batangas); on the south by the municipalities of Lian and Tuy
(Batangas); on the west by the China Sea. It consists of thirty (30) rural barangays and
twelve (12) urban barangays or Poblacion.

OPTION 3 PAMPANGA

Location
Pampanga is a province of the
Philippines located in the Central Luzon
region. It is divided into 20 municipalities,
two cities Angeles and San Fernando
and four congressional districts. Pampanga
is served by the Diosdado Macapagal
International Airport, which is located at
Clark Freeport Zone in Angeles City, some 16 kilometers north of the provincial capital. The
province is home to two air bases under the Philippine Air Force. They are the Basa Air
Base in Floridabalanca and the former U.S. Clark Air Base in Angeles City.
Market
Pampanga is taking center stage as the country shifts into industrial high gear. The
province has always been a net exporter of food products like rice, sugar, vegetables and
fruits as well as poultry, livestock and inland fish products. It is also richly blessed with a
highly skilled and highly educated resource pool of manpower, who have a tradition of
industrial pursuit especially in the fields of woodcraft, food processing, ceramics,
metalworking and decorative crafts. An excellent network of good roads covers the entire
province and connects to the main arterial highway to Manila and Olongapo City. An
international airport is located within the Clark Special Economic Zone, while other utilities
such as power, telecommunications and potable and irrigated water extensively cover the
entire province and are readily available for industries and businesses.
Energy Availability
Electric power is distributed to majority of the towns through the distribution centers
of the Pampanga Electric Cooperative (PELCO) which include PELCO I, II, III. Small parts of
Candaba and Macabebe are also supplied by Manila Electric Company (MERALCO).
Angeles City and small parts of Mabalacat, Bacolor, and Porac are supplied by Angeles
Electric Corporation (AEC). City of San Fernando is supplied by San Fernando Electric
Company (SFELAPCO).
Climate
The climate is characterized by two extremes: very dry from November to May and
very wet for the rest of the year. The province is exposed to the southwest monsoon and

cyclonic storms, but it is shielded from the northwest and trade winds by the mountain
ranges.
Transportation
The province of Pampanga is strategically located at the crossroads of central Luzon
and is highly accessible by both air and land. The province is home to two airstrips: Basa Air
Base in Floridablanca, which is utilized by the military, and the Diosdado Macapagal
International Airport (formerly Clark International Airport) in Angeles City. Pampanga also
has five existing municipal ports which function as fish landing centers. These are situated in
the municipalities of Guagua, Macabebe, Masantol, Minalin, and Sasmuan.
Land travel to the province is made easy by numerous buses that travel the routes of
Manila-Pampanga-Bataan, Manila-Pampanga-Zambales, Manila-Pampanga-Tarlac, ManilaPampanga-Nueva Ecija, and Manila-Bulacan-Pampanga. The 83.7 - kilometer North Luzon
Expressway (NLEX) extends from Balintawak in Metro Manila to Sta. Ines in Pampanga. It
passes through the large cities of San Fernando and Angeles and municipalities of Minalin
and San Simon through Sta. Ines, which is located near the former U.S. Air Force Base at
Clark Field. The 94-kilometer four-lane Subic-Clark-Tarlac Expressway (SCTEx) to date, is
the longest toll expressway in the Philippines.
Water Supply
Potable water supply in the province reaches the populace through three levels
namely: Level I (point source system), Level II (communal faucet system), and Level III
(individual connections). A well or spring is the pinpointed water source in areas where
houses are few as the system is only designed to serve 15 to 25 households.
Labor Supply
Pampanga ranked third in terms of population size among the six provinces (Bataan,
Bulacan, Nueva Ecija, Pampanga, Tarlac, Zambales) and two highly urbanized cities
(Angeles City and Olongapo City) in Centaral Luzon, contributing 20.11 percent to the eight
million population of the region. At the national level, the province shared 2.11 percent to the
total population of 76.5 million as recorded in the 2000 Census of Population and Housing.
Site Characteristics
The province is a part of the great plain extending from Manila Bay, north of the gulf
of Lingayen, Pangasinan. Most of this area is only a few meters above sea level. The

mountainous areas are near the Pampanga-Zambales border. These areas are covered by
Mountainous Pinatubo Region. The general slope is south and southeast towards Manila
bay and Rio Grande.

Comparison of Plant Location

Table of Comparison in Choosing the Best Plant Location
FACTORS

Laguna

Batangas

Pampanga

Availability of Raw Materials

Market

Energy Availability

Climate

Transportation

Water Supply

Labor Supply

10

Site Characteristics

10

Community Factors

80

70

73

TOTAL

The table above will be used as a basis for choosing the most suitable location of the
plant. The important factors to be considered are presented and are graded accordingly
based on the degree of distinction, for each alternative location. The grades range from 10
as the highest and 0 as the lowest. The table shows that the province of Laguna obtained
the highest grades in almost all factors.

Plant Location Analysis

After thorough analysis of the major characteristics of the plant locations, it was
decided that Laguna is the most recommended site for the plant location.
In terms of the physical characteristics of the alternative site, such as site
characteristics, the province of Batangas has the most arable land though the terrain but, it
may not permit its entirety to be submitted to agricultural prospects, but all provinces have

fertile lands and are supported with a good water supply from nearby rivers and bodies of
water.
For the infrastructure facilities, Laguna has more reliable establishment that provide
the needs of transportation and telecommunication. This will be of great help to the company
in their market and personal dealings to other cities especially in Metro Manila. Faster and
more efficient access to the major cities would mean bigger market and income. In terms of
income and financial resources, it has more developed towns, having thousands of
establishments which include construction suppliers and distributors. The residential sector
is more advanced which means bigger demand for construction materials.
Another factor that is considered in the choice of plant location is the population of
the labor force. And based from the data gathered, Laguna has greater labor force that
would be a great help for the company in the hiring of workers.
It was then decided to construct the PEA manufacturing plant in Bian, Laguna.