| “China Twelfth Five-Year Plan" point out that China should developing automotive,marine, energy and construction industries and improving electricity, transportation,telecommunications and railway infrastructure in2010-2015. Meanwhile, with thedevelopment of awareness of live security of residents, the performance requirementshave been requesting higher and higher on keeping from ifring and exploding of thewire and cable. Therefore，many wire companies are beginning to conduct ifre-proofcable production line technological transformation project. It is extremely signiifcant toin-depth analysis on the beneifts and risks of these projects which have high technicalcontent, a huge amount of investment and long development cycles.This paper, ifrstly, in-depth analyzes the external macro environment of the HunanXihu Wire and Cable Co. Ltd with the PEST analysis model and conducts a survey ofthe ifre-proof cable market condition. Secondly, economic beneifts, social beneift andenvironmental beneift of the project have been estimated in this paper. Finally, riskmanagement were carried out a study on the risk that the project may face, and thecorresponding risk control measures and risk management safeguards have beenprovided.In general, the smooth implementation of the project has been directly impacted bythe investment eiffciency and risk management. It turns out that the ifre-proof cableproduction line technological transformation project of the Hunan Xihu Wire and CableCo. Ltd has a high economical beneifts, social beneifts and environmental beneifts. Theproject provides a higher proift, a shorter payback period, a higher tax and a moreeiffcient of environmental protection than other projects. This paper argues that theifre-proof cable production line technological transformation of Hunan Xihu Wire andCable Co. Ltd might face policy risk，technology risk，market risk and capitaloperational risk，but these risks could be well controlled with different measures. Finally,this paper argues that Hunan Xihu Wire and Cable Co. Ltd can keep the project beingsmoothly carried out by institutional guarantee, human resource guarantee andtechnological guarantee. |
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