Research On The Market And Economic Benefit Evaluation Of PTA Project Of SD Co.LTD

With the rapid development of social economic and people’s living standards,the clothing demand of people is increasing,which lead to the rapid development of the polyester industry.The raw material PTA Industrial is lagging behind.On one hand it leads to the growing contradiction between supply and demand,on the other hand it makes the PTA raw material industry gained rapid development opportunities.In our country,it has been a long time since the chemical fiber material mainly accumulated in southeast coastal area.The polyester industry in Sichuan,Chongqing and Shanxi also has a rapid development,but the supply of raw materials there for PTA industry is comparatively weak.Sichuan is located in the western China and a key area of Western Development of China while Nanchong is the center node between the west triangle economic zone and the Chengdu-Chongqing economic zone.In order to satisfy the market demand and development of enterprises,SD co.plans to invest a new PTA project in Nanchong to meet the requirements of polyester raw materials in Sichuan,Chongqing and Shanxi.In this paper,a related introduction to SD co.and PTA project is given,and sees the development opportunities and advantages through analysis of the SD company investment to PTA project.In the market analysis of the PTA project,the author mainly analyzes five aspects:the prediction and analysis of production and consumption situation in foreign markets of PTA products.And the analysis of domestic market,prediction of domestic production and demand;analysis of the main raw material PX market’s situation;analysis of the PTA prices;analysis of the target market;analysis of the advantages and disadvantages in the competitiveness of products is proposed here.Through the analysis of these five aspects,the author summarizes corresponding conclusion,and puts forward concrete suggestions for SD company PTA project.First,SD co.can take on-site supporting or its own development PTA downstream polyester,chemical fiber and other projects into consideration in order to perfect the industry chain and from PTA to polyester,or even develop a complete set of chemical fiber-textile-printing and dyeing-finishing garments-packing industry chain,so that under the condition of volatility in the domestic market,it can ensure the smooth development of PTA project and joint resistance of the market risk.Second,SD co.can help the government attract investment and develop the western textile apparel industry market.Combined with the chance by the policy of moving spindle from east to west,SD co.can integrate the upstream and downstream industries.Through its independent innovation and attracting investment,SD company will continuously extend its industrial chain,and foster downstream silk spinning clothing industry,then form the PTA-polyester chemical fiber-textile-garment industry cluster.At the same time,SD co.should pay attention to the adjustment of industrial structure and product structure,market development,independent innovation in textile industry and try to do better and be stronger.Also SD co.should try to seek markets in Sichuan province and surrounding provinces and cities,and reduce sales of the eastern coastal regions as many as possible.Third,SD co.needs to reinforce is technology research,development and introduction,and closely concern new technologies and processes of the PTA projects,so as to provide technical reform measures in time like reducing energy consumption and cost as far as possible in order to improve market competitiveness.Based on the brief introduction of SD co.and the market analysis of the PTA project in the paper,the author analyzes the strengths,weaknesses,opportunities and threats of the PTA project,then makes the SWOT matrix of the PTA project,and gives final recommendations to the work in the next step at last.Based on the evaluation to the economic efficiency of the PTA project in this paper,the author first establishes the rating principles and basis of the project’s economic efficiency.At the same time,based on the PTA project economic efficiency,the author posed the economic benefit evaluation index system,which includes static payback period of investment,financial net present value and financial internal rate of return of total investment yields.By using these indicators for analysis of the SD co.specific situation,profitability and solvency of the PTA project,it is concluded that the PTA project has good economic benefits and low risk level.On this basis,the author makes a break-even analysis and sensitivity analysis according to the PTA project.In the break-even analysis,the author uses the utilization of production capacity to represent the break-even points and analyzes the project.In the period of the project production and business operation,the break-even points are between 65%and 50%,and the break-even points are located in low levels as a whole.From the perspective of production load factor,the project has a strong ability to resist risks.In sensitivity analysis,the author uses the product price(sales),raw material price and construction investment changes to make a sensitivity analysis of the project internal rate of return before income tax as a single factor,which conclude a transaction that the sensitivity of PTA project to product price and the raw material price is strong,especially to the sensitivity of the product sale price.Finally,SD co.should give enough attention to the product price and the raw material price in the operation of the PTA project,and try to decrease the risks in the its operation.