The most effective computer algorithms for facility layout that have been found are mainly based on the improvement heuristic such as CRAFT. In this paper, we present a new algorithm which is based on the Kohonen neual network. The algorithm firstly forms a self-organizing feature map where the most important similarity relationships among the facilities are converted into their spatial relationships. A layout is then obtained by a minor adjustment to the map. Some simulation results are given to show the performance of the algorithm.