The Research Of Investment Cost In Technical Innovation Project By No.1Steel Making Plant Of CSG

Industry is the leading pursuit in our contry,the steel industry is our pillar industry. Thedevelopment of steel industry must play on other industries, for example the constructionenterprises、the Real-estate sector、the shipbuilding industry and the other manufactures. In thelast few years,our steel industry has started large-scale development.Some steel industry haveundertaken technological renovation and eliminated outdated technology and equipment.Some other steel industries augment their size through bankruptcy, merger and reorganization.The CSG consider the situation and concentrate on technological transformation during the10th Five-Year Plan period.Now the CSG have been in the main finished the first steps intechnological transformation of the feedstock system.The CSG is ready to reform its steelplant and rolling plant during the11th Five-Year Plan period. The technical innovation projectbyNO.1steel making plant of CSG is the main project of the plan.How to reduce theinvestment cost and utilize the investment efficiently are the most important goals to a project.The text studies particularly on the investment cost of the technical innovation projectbyNO.1steel. So that we can provide reference for the CSG, and it can choose the bestinvestment conduit and investment mode, decrease the investment cost.The essay combine theory with practice.It studies principally on influence of theinvestment cost, the way of controlling investment cost,and the model of investment cost.Theinvestment cost of this project is edified by financial condition、investment structure and basicflow of investment. The financial condition is the most direct external environment that theproject must face. It is very vital significance for investment cost. Sophisticated financialmarket is the medium of investment,it can afford timely and quickly condition for theproject,also it can afford better chances and environments. Investment structure of the projectrefers to what is the proportion of the money from internal or external in the aggregateinvestment.The plan and performance of investment develop in three stages. The first stage isto determine the plan of investment, make clear how money the project requires、what is theinvestment conduit、 what is investment mode and where is the money to be. The secondstage is carry out the plan of investment strictly under its target. The third stage is to make aanalysis report and check effect of the investment plan.AT last sum up experience andshortcoming of the investment plan.The text analyzes the way of controlling investment costfrom four aspects: the investment Conduit of the project、the cost structure of investmentcontrolling、the time value of investment controlling and the operational flow of investmentcontrolling.At last, This paper deals with the cost control model of the technical innovation project byNO.1steel.It discusses the range of the model、analyzes the variables of the modeland the control model、brings the application range and the method of the model.With studying investment cost of the project,we can find a suitable investmentprogramme for CSG,so that it can lower the investment cost, reduce the investment risks,andimprove investment benefit.