Feasibility Study On Glyphosaten Expansion Project Of LongDa Company

Since 1930s the U.S. government achieved great success in development of Tennessee River Basin by means of project feasibility study, the methods and theories for project feasibility study have enjoyed a rapid development in the following 70 years. With the development of technical sciences, management sciences and natural sciences, feasibility study has already become an integrated cross-cutting discipline. As a scientific method for project management and evaluation, feasibility study is widely used in business investment and engineering projects.Since"solving three dimensional rural issues"has been raised to a strategic height in the Seventeenth National Congress of the Communist Party of China, agricultural problem as one of these issues obtained more extensive attention. Pesticide is the lubricant of agriculture and glyphosaten is an excellent one with many advantages such as high efficiency, low toxicity, low residual and wide weed control spectrum. It can be widely used in orchards, tea gardens, alongside roads and railways, irrigation and drainage ditches, oil storage and factories. In 2006, the sales volume of glyphosate accounts for 35% of the gross sales volume of herbicide globally and increases as the speed of 25% annually, thus the production of glyphosaten posses a widely market prospect.LongDa Company is a leading listed company of national pesticide industry which product various kinds of pesticide. To adapt some change of government policy and satisfy the market demand of the 10% consumption increase rate of herbicide annually, LongDa Company focus on upgrading the pesticide product structure, increasing the rate of pesticide herbicide in"the Eleventh Five-Year Plan"so as to make the company's proportion of insecticide and herbicide to the same level of developed countries.In this paper, by the theoretical framework of project management, some specific methods of feasibility study are employed to analyze the glyphosate expansion project of Longda Corporation. From the perspectives of market, technology, environment, corganization, finance and risk, this paper analyzes the feasibility of this project in the following aspects: feasibility analysis of market, the design of building and production, feasibility analysis of environmental protection,project implementation, analysis on finance ,analysis of risk estimate and control. In the process of study, some research methods (e.g. combination of normative analysis with empirical analysis, inductive analysis, and comparison & contrast, etc.) are used to analyze the feasibility of the project from different perspectives and, creatively, the Real Option Method is employed to estimate the financial benefits of this project. Finally, synthesizing the stuying contents,a synthetic conclusion is reachend of the project. In accordance with the key issues in project implementation, some proposals and countermeasures are put forward in this paper.It's hoped by the author that this report will provide a basis for correct decision making for the glyphosate expansion project of Longda Company. Plus, it's also expected that this study report could become a template of feasibility study for similar projects in the industry.