| Abstract: | A locational study of the Iron-Steel Design Institute is criticized on the ground that it selected potential plant sites intuitively and then examined them in terms of proximity to iron ore, water availability and minimal transport requirements. An alternative methodology is proposed. The general region for the new plant is first established on the bases of the interregional balance of iron and steel products. The Central European region is found to have a deficit in the entire product range. A more specific location is then derived by calculating potential transport costs with respect to both markets and sources of raw materials (iron ore, coke). The Rzhev area of Kalinin Oblast is found to be optimal in terms of transport costs alone. But when water and, particularly, labor resources are considered, preference shifts in favor of a plant location in the Gor'kiy-Kostroma area. |
