Investment Decisions Of ZB Company’s Project Ⅱ In UHMWPE

Textile industry is China’s traditional industry, as well as a pillar industry, with the development of the world economy and the progress of science and technology, China’s textile industry has made a great progress, but compared with the industrial technology level and structure of the developed countries in this world, there is still a long way to go forward for the textile industry in China, and also there are a lot of technological difficulties to be overcome.The second project of high strength and high modulus polyethylene fiber of zb Corp. which described in this article is belong to a kind of new fiber materials industry which turned from the traditional textile industry. This paper uses investment decision theory and method to make a feasibility study on the investment of Project Ⅱ of zb Corp.Firstly, the paper made a brief introduction of Project Ⅱ of zb Corp.; then it analyzed the supply and demand situation of the market of high strength and high modulus polyethylene fiber, as mean while it elaborated the national policy support to this industry from the macroscopic angle. Then the paper made an investment estimate to the expansion project of Project Ⅱ and analyses the situation of financing. And on this basis it made a financial evaluation using the profitability analysis, risk analysis, sensitivity analysis and EVA index analysis; Finally, we can get a analysis result of project investment decisions by the above method, at the same time corresponding suggestions are put forward.