The construction of chemical clusters whereby a variety of chemical plants are located next to each other provides great economic benefits. However, in such clusters, due to the mere scale on which hazardous materials are processed, stored and handled, the potential of various accidents is much higher than in single companies. Furthermore, the close proximity of process installations and storage tanks in such areas gives rise to the risk of domino effects. Therefore, land use planning and layout design has always been a challenge within such clusters. In this paper, a Quantitative Risk Assessment (QRA) is carried out and used as a decision making tool to evaluate the acceptability of constructing a new chemical plant adjacent to an existing one. For this purpose, standard parameters such as individual risk and societal risk were quantified, before and after the new plant would come into operation. Given the experience of past accidents in the process industries, the likelihood of domino accidents in the two neighboring plants has also been analyzed. (C) 2012 Elsevier Ltd. All rights reserved.