Title: Types of connections between plant location selection and the long term corporate level value creation and methods for their identification. Case study; the pulp and paper industry

Authors: Vesa Karvonen; Eeva Jernström; Andrzej Kraslawski

Addresses: LUT School of Industrial Engineering and Management, Lappeenranta University of Technology, Skinnarilankatu 34, FI-53851 Lappeenranta, Finland ' LUT School of Technology, Lappeenranta University of Technology, Skinnarilankatu 34, FI-53851 Lappeenranta, Finland ' LUT School of Technology, Lappeenranta University of Technology, Skinnarilankatu 34, FI-53851 Lappeenranta, Finland; Faculty of Process and Environmental Engineering, Lodz University of Technology, ul. Wolczanska 213, 90-924 Lodz, Poland

Abstract: Many engineers see plant location selection only as an interesting task and a minor part of process and plant engineering. At the same time plant location selection is an important part of the corporate level strategic management and decision making. This paper discusses the types of interactions between plant location selection and strategic long term value creation at the corporate level. The research approach used in this case study is a combination of the classic value chain model and the core elements of plant location selection methods. The most important findings are that the plant location selection and the chosen technology are the core internal elements at the corporate level for long term value creation.

Keywords: plant design; value chain; pulp and paper industry; P&P; production plant location; value creation; strategic management; strategic decision making; plant location selection; case study.

DOI: 10.1504/IJISE.2015.068197

International Journal of Industrial and Systems Engineering, 2015 Vol.19 No.3, pp.277 - 293

Received: 23 Feb 2013
Accepted: 22 Sep 2013
Published online: 24 Mar 2015 *

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