Types of Plant Construction

▣ Definition of a Plant

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The term “Plant” refers to an entire set of processes, facilities, equipment, or factory installations.

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In Korea’s Basic Industrial Law, it is referred to as industrial facilities. In some cases, the term Facility is used interchangeably with Plant.

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In general, a plant is a place where machinery, equipment, buildings, structures, and materials are assembled to produce products. This meaning extends beyond the physical hardware—the machinery, equipment, and infrastructure needed for production—to include the software aspects such as production process technology, operation and maintenance, and overall plant management.

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A plant can be defined as:

“An integrated system that organically combines machinery, equipment, and other related elements to process inputs—such as labor, raw materials, and capital—into outputs, namely products with specific functions (including their associated profits).”

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▣ Components of a Plant

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A plant, which produces products that provide value and benefits to people, cannot exist merely to produce goods. In the past, when demand exceeded supply, this might have been enough. But in today’s highly competitive environment—where large-scale production, economic complexity, and diverse consumer needs prevail—economic efficiency through cost reduction has become essential.

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If a plant lacks certain key elements, it risks becoming a costly burden rather than a productive asset.

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Essential Components

• Product manufacturing process technology

• Economically constructed facilities and equipment

• Safe and stable operation technology

• Cost-effective production

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Physical Components

• Land

• Raw material import, storage, and processing facilities

• Product manufacturing facilities

• Product storage and shipping facilities

• Utility supply systems

• Operation control facilities

• Maintenance facilities

• Other ancillary installations

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▣ Types of Plants

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• Refinery, petrochemical, chemical, and gas plants

• Power generation and other energy production plants

• Steelmaking and metal production plants

• Machinery and manufacturing plants

• Food processing and pharmaceutical plants

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▣ Refinery, Petrochemical, Chemical, and Gas Plants

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These are the most common types of plants in operation and trade. Their production processes are typically defined both qualitatively and quantitatively by chemical reaction formulas.

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Most process technologies are licensed and patented. Conditions for promoting chemical reactions and improving efficiency are provided by the licensor.

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Based on the licensor’s technology package, engineers perform basic and detailed designs. Machinery and equipment are then manufactured or procured according to the specifications, installed as per the design drawings, and connected to enable product manufacturing.

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▣ Power Generation and Energy Plants

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Power plants—such as nuclear, thermal, hydro, tidal, wind, and gas power facilities—consist of several key systems like boilers, reactors, turbines, and generators.

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The efficiency, performance, and cost of the plant are heavily influenced by the design and manufacturing capabilities of these main equipment suppliers.

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The classification of the plant depends on how the energy for power generation is obtained.

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▣ Steelmaking and Metal Plants

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Steelmaking and metal production plants require engineering knowledge derived from extensive operational data and statistical experience.

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In most cases, companies that already own steel production facilities act as the main engineers for new plant construction. The overall project is usually led by these production companies, while key equipment manufacturers handle engineering and fabrication for specific units within the plant.

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▣ Machinery and Manufacturing Plants

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Plants producing equipment such as pumps, transformers, and valves generally do not follow a single, standardized production process. Most production is custom-ordered, and plant layouts vary depending on the owner’s operational experience and management style.

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In many cases, the plant owner directly undertakes the entire construction of the plant, outsourcing only building and utility work.

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▣ Food Processing and Pharmaceutical Plants

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In these industries, manufacturing technologies are typically developed in-house, patented, and kept under strict confidentiality.

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Production facilities are often batch-type rather than continuous. This allows for easier adjustment of production volumes in response to market demand and facilitates quick changes when developing or improving new products.

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Given the constant innovation in product formulas—especially in pharmaceuticals—batch-type facilities offer greater flexibility than fixed continuous production systems.

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From the planning stage, owners often design and manage the project themselves, outsourcing buildings and utility facilities to plant engineering firms or contractors, while manufacturing equipment is custom-made, purchased, and installed directly.

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