The document discusses factors that influence the location of industry and how industry has changed over time in South Wales. It notes that traditional heavy industries like coal and steel declined as raw materials became exhausted. New industries have located in South Wales due to incentives and being near ports for importing raw materials. Industries have shifted from heavy to high-tech and light manufacturing, moving from 'soot' to 'Sony'. Regional assistance through groups like the Welsh Development Agency has attracted foreign investment and created new jobs.

3. What factors are important when locating a factory / industry ? Labour Capital Markets Transport Government Policies Technology Leisure facilities Raw materials Power Flat land HUMAN AND ECONOMIC FACTORS PHYSICAL FACTORS

4. What Factors are Important when locating a Factory? Physical Factors Raw Materials: The bulkier and heavier these are to transport, the nearer the factory should be located to the raw materials. This was even more important when transport was poor. Power – energy: This is needed to work the machines in the factory. Early industry needed to be sited near to fast-flowing rivers or coal reserves, but today electricity can be transported long distances. Site and Land: Industries should be built on FLAT land with room to expand. The land is often low-quality as it is cheaper to purchase. Human and Economic Factors Labour: This includes both quantity (large numbers in nineteenth-century factories) and quality (as some areas demand special skills as technology develops). Capital: Early industry depended on wealthy entrepreneurs. Now banks and governments may provide the money. Markets: The size and location of markets have become more important than the source of raw materials. Transport: Costs increase when items moved are bulky, fragile, heavy or perishable. Industries want to save money. Economies of scale : Small units may become unprofitable and so merge with, or are taken over by, other firms.

8. HOW MANY MINERS ARE THERE IN WALES ?

9. CHANGING INDUSTRIES CASE STUDY : SOUTH WALES Port Talbot integrated Steelworks

10. BOC at Port Talbot Integrated Steelworks at Port Talbot Why do heavy industries locate at Port Talbot? 1) cheap, flat and plentiful reclaimed land 2) accessible – near the M4 and on the coast (port)

11. There is only one remaining steelworks in South Wales. This is located at Port Talbot (Llanwern steelworks closed in 2001 causing 1340 jobs to be lost). The Port Talbot steelworks is called an ‘integrated’ steelworks because all stages of manufacture take place on one site. The high quality coal and iron ore have now been exhausted in South Wales. Nowadays coal and iron ore are imported from abroad where high quality raw materials can be extracted more cheaply. It is therefore more efficient for the steelworks to be located on the coast. Traditional Industries on the coast - Integrated Steelworks Give reasons why raw materials can be extracted more cheaply from abroad.

14. Ebbw Vale – Festival Park Shopping The WDA (Welsh Development Agency), local authorities and the private sector spent £60 million on converting the area from a wasteland of spoil heaps into the Ebbw Vale Garden Festival. Festival Park Factory Shopping Village is now located on this site.

15. What has been done ? WDA (Welsh Development Agency) UK Government European Regional Development Fund The Valleys are a Development Area. This means that industries are encouraged to the area by offering them incentives such as grants, reduced business rates, planning permission and premises. Sources of Regional Assistance

16. Who gains from regional assistance ? Rhondda gains new jobs Fenner is closing its Hull and Peterborough factories to move its production to Maerdy. The company has been attracted to the Rhondda by £12 million in government grants. The factory is a godsend. Maerdy’s colliery closed in 1990 putting 400 out of work and male unemployment stands at 25%. The new factory will be built on this site. Eventually, the factory, which makes mouldings for the car industry, will employ 500 people. 1995 Why did Fenner move its production to Maerdy? Who loses and who benefits from Fenner’s decision?

17. Lucky Goldstar in Newport LG, a South Korean multinational company, decided to locate a semi conductor plant in Newport, South Wales in 1996.

18. Why do you think LG located in Newport? What type of support jobs may be generated? South Wales celebrates with Korean multinational investment Lucky Goldstar (LG) plans to build a new factory on a 250 acre site at Imperial Park in Newport. The factory, which eventually aims to employ 6,100, will produce semi conductors and television parts. It is likely that another 15,000 support jobs will be generated. LG were given a generous subsidy in order to attract their investment to South Wales. The WDA refuses to confirm rumours that the grant was as much as £200 million. This is equivalent to £20,000 per job. July 1996

19. Summary – selected industries in South Wales Lucky Goldstar Tourism in the Valleys – Big Pit at Blaenavon and Rhondda Heritage Park at Trehafod Ebbw Vale – Corus galvanizing steel and tin plating tertiary and quaternary Corus Integrated steel works Nickel and copper plating, DVLA HQ (Driving License) Business parks E.g. Sony and Hotpoint in Bridgend Industrial Park

21. Summary In the nineteenth century and first half of the twentieth century, the coal and iron and steel industries dominated the landscape of the _______ of South Wales. These industries prospered due to the accessibility of raw materials and due to the fact that Britain had an _______ which provided a ready market. These industries declined in the latter half of the twentieth century because Britain lost its Empire, the raw materials became exhausted and there was competition from abroad. In addition, coal is no longer the major source of _______ in Britain. Coal is an example of a _______ industry. Iron and steel is an example of a _______ industry. The raw materials that make iron are iron ore, _______ and _______. Steel production increased because it is stronger and less _______ than iron. primary tertiary secondary fuel malleable Empire coal limestone coast Valleys steel brittle