PLANT LOCATION & SITE SELECTION

Teluk Kalong Industrial Estate,Kemaman, Terengganu An ideal geographical plant site provides simultaneous optimisation growth and profitability with the lowest possible cost of manufacturing and leads to efficient and economical chemical production. A wide variety of considerations must be taken in for selecting a suitable site location. Among the selection criteria are: 1. 2. 3. 4. 5. 6. Availability of the raw material sources Accessibility of the site for distribution and marketing of finished products Availability of infrastructural facilities, basic utilities and labour. Availability of free land for future expansion Density of the local community population Local political and governmental strategic considerations.

Among the proposed sites, Teluk Kalong Industrial Estate, Kemaman, Terengganu is an ideal feasible site location for the Cinnamaldehyde production plant based on its low land price, well-establishments of facilities, good transportation facilities and the various incentives given by the local government. a.) Good raw material sources nearby As the production process requires a large amount of alkali and acid chemicals, the chemicals supply can be obtainable from Malaysia largest manufacturer of chlor-alkali products, Malay Sino Chemical Industries Sdn.Bhd which also strategically situated nearby within Kemaman in the state of Terengganu DarulIman. This eventually results in lower freight and transportation fees as well as reduction in storage charges. For the main raw material: Benzaldehyde and Acetaldehyde, both chemicals are not readily-available within Peninsula Malaysia and only available in other neighbouring countries such as China and India. Thus, well establishment of port facilities plays a crucial role in site selection. Three port facilities: Kemaman Port-Vision, Kerteh Minor Port and Kuantan Port are available within state of Terengganu for any types of trades involving either importing raw materials or exporting finished products to other countries. b.) Low industrial land price A total of 800 acre of ideally flat, well drained and load-bearing industrial land is available within Teluk Kalung Industrial Area in Kemaman for light, medium and heavy industries. Based on Malaysian Investment Development Authority (MIDA), the selling price of an industrial land per feet squares at Terengganu is ranging from RM 0.18 to RM5.60 which is the cheapest land cost among the other states.