Jinan Baldwin Gas Equipment Replacement Decision

Recent years, with the fast developing of iron and steel industry in our country, the output of iron and steel works overstep the requirement of the market, the bazaar competition dive into heavily. JiNan Iron and Steel Co. Ltd must greet the regions challenge of subsist and development. For enhance the profit of JiNan Iron and Steel Co. Ltd. In the tenth "five year growing project", JiNan Iron And Steel Co. Ltd growth of stratagem is enhance the major produce and vigorously develop the subsidiary produce and at this develop gas industry is one of the essential develop project.The need of gas productions of our society improved fast, which promot the development of gas industry, fol lowing our country's economic development, especial hi-tech industry. Aiming at the gas markets conditions, every gas producters unearthed their produce potential as efforts as they could. They supplied products that adapted the market's need and get better economic benefit.The author is engaged in producing and equipments managing in the actual work. He provides scientific decision-making project that resolves equipment's renewing for the enterprise through study and research. The article uses the method of system engineering study and the method of technology ecomomics quantum analysis to evaluate and analyse the equipment renew project of JiNan BaoDe Gas Co. Ltd in composition and at last gets a sound executive redusing project. Through economic technologic analysis, the author compares the parameters of "Finance Net Present Value after Taxes of All Investment" "Internal Benefit-radio after Taxes of All Investment" "Payback Period of Invenstment" and "Sensitive Analysis" etc. The two projects have unlike features. The "reform old equipment" and "build a new set of machine" project, have the priorities and defects in different sides. If we renew old equipment, we can use the valuable parts of old machine and cut down the new investment, but its benefit is bad. The new build oxygen making-machine has features that its cost is large in fixed assets, the payback period of investment is long and yearly profit ability is strong. In a word, according to the conditions of JiNan BaoDe Gas Co. Ltd and its need for improving its market competition ability more, our company chooses renewing project is better.