1A2 GEOGRAPHY
Tuesday October 14th 2014
Objective:
To demonstrate that the location of an individual factory is based on decisions concerning a
number of factors, which include:
1.
2.
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4.
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8.
Raw materials
Markets
Transport facilities
Labour force
Services
Capital
Government/EU policy
Personal preferences
CASE STUDY 1 → RUSAL’S AUGHINISH ALUMINA – A HEAVY INDUSTRY
CASE STUDY 2 → APPLE COMPUTERS LTD – A LIGHT INDUSTRY
Raw materials
 Factory must be located close to heavy materials.
 Difficult and heavy to transport.
Markets
 Access to markets → must locate close to places where products are sold and
customers buy.
 Fast. Reduces transport costs.
Transport facilities
 Road and rail required to transport material around Ireland.
 Airports and ports required for exports.
Labour
 Factories need people.
 Locate near cities and towns.
 Many kinds of workers needed → skilled and unskilled.
Services
 Must be available and of good quality, e.g. electricity, water, sewage treatment and
waste disposal, telephone, broadband, Wi-Fi.
Capital
 Money needed to get started, e.g. investment from bank/ financial institution.
Government/EU policy
 Businesses encouraged to set up in countries → grants, incentives, low corporation
tax rate (Ireland).
Personal preferences
 Factories often located by people in areas they come from or places they like.
Different kinds of manufacturing industry
 Heavy industry – e.g. RUSAL’s Aughinish Alumina.
 Light industry.
E.g. Apple.
Products small and light.
Electronics and healthcare products.
 Multinational Corporations.
Headquarters located in one country.
Branches throughout the world.
 Footloose industry.
In the past, industries located in regions where there was easy access to coal → the
main source of energy. Coal burned to create steam to power spinning machines that
made textiles during the Industrial Revolution. Coal also used in iron and steel
production.
Coalfields eventually overused and exhausted.
Today, many manufacturing industries not tied to one place. Can set up in a variety of
locations. Called footloose industries for that reason. Often light industries → locate
in industrial estates/ business parks – e.g. Microsoft Ireland in Sandyford industrial
estate.
Case Study 1
RUSAL’s Aughinish Alumina: A Heavy Industry
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Located near Limerick City on Aughinish Island in the Shannon Estuary.
Every year it produces 1.8 million tons alumina, a white powder used to make
aluminium.
Alumina is a semi-finished product, exported by ship to aluminium smelters in the
UK and Scandinavia.
Opened in 1983.
Largest factory of its kind in Europe.
Creates jobs → 450 employed.
Reasons for its location
Raw materials
 Bauxite.
 Heavy/bulky.
 Republic of Guinea, Africa.
 Shipped to Shannon Estuary to deep water dock at Aughinish – accommodates large
ships.
Market
 Ireland member of EU and close to EU markets.
 Alumina exported to UK, Scandinavia and other EU countries.
Transport
 Deep water port allows ships to dock and transport bauxite to the factory and export
alumina.
 Roads: N69 connects island to Limerick City and Shannon Airport.
Labour Force
 Nearby towns and villages provide the work force.
 450 employed.
Capital
 Part of the MNC that is the world’s largest aluminium producer.
 Provides money the factory needs.
Aughinish Island
 A large supply of bauxite can be stored on the island and remain close to factory.
Case Study 2
Apple: A Light Industry
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Located in Hollyhill, Cork.
Produces computers, iPads, iPods, and iPhones. Sold around the world.
Creates jobs → 3300 employed.
1980s
Grown considerably due to demand for high end products.
Operational Headquarters for Europe, Middle East and Asia.
Reasons for its location:
Government policy
 Low corporation tax rate encouraged Apple to locate, and stay, in Cork.
 Ireland’s membership of EU. Free movement of goods to other EU states.
Transport
 Close to Cork port and airport.
Goods shipped at lower cost.
Labour force
 Educated.
 Close to UCC and CIT.