Plywood industries are often located near the source of?

1. Analyze the question The question asks about industrial location: what factor determines where plywood industries are sited?

2. Explain the concept Firms locate near the factor that is most costly or difficult to transport. Industries fall into two broad types:

• Weight-losing (bulk-reducing) industries: the raw material loses a lot of weight or bulk during processing. These locate near the source of raw materials to cut transport costs. Examples: sawmilling and plywood, cement, sugar processing, palm oil milling, mining and smelting.
• Weight-gaining or market-oriented industries: these locate near the market. Examples: bottling, bread baking, furniture assembly.

3. Solution

• Plywood is made from logs (timber), which are heavy and bulky.
• During processing, logs are debarked, peeled into veneers, and trimmed, so a lot of waste (bark, sawdust, offcuts) is lost.
• Carrying whole logs over long distances would be expensive, so it is cheaper to process them near the forest, where the timber is harvested.
• In Nigeria, for example, plywood and sawmill industries are found in forest zones such as Sapele, Ijebu-Ode and Benin area (Edo/Delta/Ogun), not in the arid north.

Checking the options:

• A. Finance: capital is mobile and can be moved easily, so it doesn't fix location.
• B. Labour: plywood needs labour, but it is not the dominant location factor.
• C. Power supply: important, but power can be transmitted or generated on site.
• D. Raw materials: correct, because timber is bulky and weight-losing.

4. Answer The correct option is D. raw materials.

5. Exam tip Remember: "Weight-losing means locate at the source." If the product is lighter than the raw material (plywood, cement, sugar, palm oil), choose raw materials. If the product is heavier or more fragile than the inputs (bottled drinks, bread), choose the market.