Forged Steel Crankshaft Investment Research Industry

In the last10years, Commercial Vehicle Market and Construction Machinery Market went through fast development. The good performance of market, lead to quick expanding investment in this industry and in a pyramid style. Especially for the components industry, the trend of over capacity is obvious.The former investments in components industry is Policy-lead investment and passive investment. This kind of investment fit the former market, but currently, Diesel Engine Industry is developing fast, changing fast, and the convention investment method could not be used any more. The former investment style could neglect projects with value and underestimate project risk.Under the new market environment, Policy-lead investment is changing to Market-driven investment. Discovering Investment Opportunities is the same important as Investment Valuations. The process of discovering investment opportunity is the process to recognize the project and could find the risk and chance. Investment Valuations could use some indexes for evaluation, and judge whether the project us profitable. Discovering Investment and Investment Valuations are complementary to each other and should combine together, to find out the economy value, chance value and strategy value of the project, and also could avoid over investment. In this article, we discover the potential of investment by using industry chain analysis, correlative factor analysis, PSETL analysis, environment evaluation, segment market analysis, product life cycle research and use The Five-force Model for competence analysis. And at last, select the project by using SWOT model.This article takes XX Company’s middle range and heavy duty forged crankshaft project for example, making the Investment Valuations by evaluating NPV, IRR, pay-back year and real option of this project. To prove underestimating of risk exist in project evaluation before. Under new environment, some risks are higher, and should be treaded seriously. Considering the new development of market, the project with Micro-Alloy steel product and flexible manufacturing process match the market development and with low risk, and could make value added for the company.Crankshaft is key component of engine and a typical product. The method of Discovering Investment and Investment Valuations in this article could be used for components industry widely.