Question

Which factors influence the localisation of cement industry?

Answer 1

Factors Influencing the Localisation of the Cement Industry

• Availability of Raw Materials: Cement manufacturing requires heavy and bulky raw materials, primarily limestone, which constitutes 60-65% of the total product. On average, 1.5 tonnes of limestone are needed to produce one tonne of cement. Other raw materials include silica, alumina, gypsum, and sometimes sea shells or industrial by-products like slag from steel and fertilizer plants. Availability of good quality limestone deposits is thus the primary factor determining the location of cement plants.
• Bulk Transport Facilities: Cement and its raw materials are low-value bulk goods. Transportation over long distances by rail or road is expensive, so cement plants tend to be located close to limestone quarries to reduce costs. Beneficiation of limestone at quarry heads also helps in cutting down transportation costs.
• Market Proximity: Being close to the market reduces the cost of transporting the finished product. Since cement is heavy with low specific value, proximity to construction markets is important to ensure economic viability.
• Power Supply: Cement production requires significant power, for grinding raw materials and clinkerisation. Coal is also used as a fuel in kilns and contributes about 40% of production cost. Access to reliable electric power and coal is thus essential.
• Other Factors: With technological advances, alternative raw materials and wider electricity availability have somewhat reduced the dependence on purely geographical factors. Non-geographical factors such as availability of capital, government policies, infrastructure, political stability, banking and insurance facilities also influence cement industry localisation.