Feasibility Study On Investment Project Of LY Company' Seamless Pipe Production Line

During the resent years in our country, there is a rapid increase for the seamless steel pipe both in production and consumption,but still there are about 700,000 tons of imports every year for more high-tech content and high added value of high-pressure boiler tubes and tube wells products. The policy developed for steel product is to optimize its structure and improve the quality. In order to shake off our country's long-term dependence for high-grade and high-pressure boiler tube wells situation,to make SS's high-grade oil products fully meet the market needs,and also to improve LY company's existing products,at the same time restructure its products frame, a high level seamless steel pipe production line is proposed to make the company a production base in the world with a complete steel specifications.This paper introduced the research background,research basis and feasibility for the project; according to the feasibility,it analyzed the necessity,favorable market condition and also the steel's market demand and supply situation,all of which figured out a bigger need and a greater market demand; base on the domestic and foreign related technology study, the paper gives the project' construction scale, production program,construction contents and process; then the paper does the financial evaluation program, construction contents and process; then the paper does the financial evaluation, including project'profitability analysis(FIRR, NPV & IRP), solvency analysis and uncertainty analysis(PL & SA). Financial analysis showed that the project not only has a good profitability and solvency, but also has a good stability.The paper gives the conclusion that the investment project is totally feasible.