Investment Decision Analysis Of Lactide Production Line Project Of JD Company

In the century of 21,a green industrial revolution of saving and using resource and energy more rationally and optimizing human condition has come.To produce environment friendly bio-degradable plastics which is synthesized by green and clean chemical using renewable resource is one of the frontiers of most valuable study,as well as critical step to protect environment and develop circular and sustainable economy.Due to enewability,bio-degradability,bio-compatibility and good processability,PLA is regarded as one of the most promising new type eco-friendly synthetic polymer material.LA as core intermediate of PLA,has a strong demand in the market.However the market in China is almost monopolized by Total-Corbion,a Dutch firm,resulting in technology and direct cost.Under the background,JD company proposed to build up LA production line,to direct the industry upgrading,complete strategic transition,break up the phase that national market is monopolized by foreign companies,as well as fill the blank of LA production and develop LA industry with independence intelligent property right.This study in the perspective of JD company,analyze and assess the feasibility of this project by four aspects by comprehensively applying investment management,project management,marketing,strategy management,finance management,operation management,data model,and risk management associated acknowledge and approach.Part one is product and market analysis through commercial value,environment,industry and market.Part two is plant construction and associated conditions analysis through overall project design,project scale,product design,construction conditions,location selection criteria,procedure and process ect.Part three is investment and financial analysis and evaluation using the approach of static and dynamic,quantitative and qualitative.Part four is uncertainty analysis and risk management.Examining project break-even and sensibility,the study recognizes and assesses the potential risks,proposed solution and improvement measurement,and builds up risk management model and system.The foresaid four aspects demonstrate the project will bring both commercial benefit and social benefit of certain degree,and get the conclusion the project is positively feasible.In the end,the study also bring forward the suggestions to make sure the project implemented successfully.