Business Plan Of Fluff Pulp Project In JT Pulp Mill

Fluff pulp is a pulp and paper products, is a kind of pulp with high water absorbency. Itsmain raw material is wood, bamboo and other plant fiber. It is mainly used for sanitary napk-ins, diapers and dustless paper manufacturing. At present, in China, the fluff pulp in personalcare products mainly rely on imports.Chinese people’s consumption habits gradually from using cheap living paper turn tousing a lot of personal care products. With the acceleration of China aging process and arrivalof a new wave of baby boomers, personal care products industry expanded rapidly in recentyears. As the main raw material, the demand of fluff pulp in the next few years will be verystrong.JT pulp mill put into operation in2008September, but, soon, it suffered from theinternational financial crisis and the large-scale centralized release of domestic pulpproduction capacity. As the double blow, the whole industry in general downturn, theinternational and domestic pulp prices were down sharply. In order to change the plight of theprofit decline, JT pulp factory decided to add a fluff pulp production line.This business plan introduces the situation of JT pulp mill and the basic situation of fluffpulp project first, and then analyzes the market situation of fluff pulp downstream products--personal care products industry, and analyzes the changes due to fluff pulp downstreammarket peatlands growth caused by the domestic and foreign fluff pulp market.This business plan focuses on fluff pulp project financial indexes, and the preparationof the detailed financial statements. Through the investment estimation and financial analysisof the project, we found that the project financial internal rate of return higher than theindustry benchmark rate (10%). The profit rate of investment, the investment profit rate in abetter level in the same industry. This indicates that the project is feasible in finance. Finally,through the project repayment ability analysis, risk analysis and uncertainty analysis, we thinkthat the overall risk of the project is not high, and it has certain anti risk ability.