Analysis Of Project Investment Feasibility Study

Industrial gases are such gases as oxygen, nitrogen, argon etc. which are used in industrial production. Industrial gases are produced by using air separation equipment and are mainly needed in metal smelting, coal chemical industry, petrol chemical industry and fertilizer industry. Technologically fundamental and important, air separation equipment and industrial gases are of great significance in China’s national economic development.As a support for major industrial projects, the industrial gas production industry enjoyed fast growth in recent years with the demand on industrial gases kept increasing in the domestic market. Relevant analysis show that during the 12th Five Year Plan period, demand on industrial gases will increase at a rate of 8% annually in China. Industrial gas production has become a fast growing industry, whose increase has a coincidence relation with the growth of GDP and is 1 to 1.5 times higher than the growth rate of GDP. Under the trend of globalization of the world economy, international air separation and industrial gas production companies are very optimistic about the Chinese market and are speeding up in making over arrangements in the Chinese market in order to ensure their advantageous position. Meanwhile, domestic air separation production enterprises, making full use of their technical and market advantages are also accelerating their speed in entering the industrial gas production quarter. Independent industrial gas production enterprises are gaining momentum and operating well. The domestic industrial gas market is undergoing fast development.The HZ company has been in the air separation business for over 10 years. Its air separation products have been exported to countries including Turkey, Myanmar, Algeria, Turkmenistan, Iran and Lybia with new markets in Russia and Africa being developed. HZ has established a good image of itself and a good reputation of its products in countries such as Turkey and is an influential producer of air separation equipment in the domestic market. As a core business, the air separation equipment production and the market of industrial gas has always been HZ’s priority.HZ’s air separation business grew under the guidance and support of the Aviation Industry Corporation of China (AVIC) Headquarters and companies at higher levels. The ideas about industrial gas business have been reported repeatedly to and approved by higher level companies’ management. Currently, HZ is planning to set up a new industrial gas company with high competitiveness and distinguished feature by reorganizing the advantageous resources it possesses in the domestic industrial gas market. There are no national boundaries in the market. The HZ company is willing to learn from the multinational companies to further expand its air separation equipment export business by making use of resources globally, to enter the industrial gas area, and to expand its market with a brand strategy.This report from the environment, market, technology, production, finance, risk the latitude to objectively study, concluded that the project investment is feasible. At the same time also to the problems existing in the feasibility study put forward its own suggestions.