The Investment Analysis On Expansion Project Of High Purity Polysilicon

High Purity Polysilicon is a very important intermediate product in its industry chain, but there are severe shortages of supply in the domestic market. More than 95% of polysilicon rely on importation. The hiking prices also endanger the development of many enterprises. These problems have formed the bottleneck for future development of information industry and photovoltaic industry of China.In this paper, analysis is given on the current domestic and international markets of polysilicon and the outlooks. The urgency to increase investment and expand construction of high purity polysilicon so as to meet the increasing market demands is proved through numbers and judgments on trends. The reasons to implement the project are justified.In terms of making the construction plan, technological, economic, environmental and social factors are taken into full consideration so as to reach the market, functional and profitable targets, meet relevant laws and regulations of the government and be in line with the scientific justifications and visions. A number of elements of the project are studied in this paper, including the scale, products, location, technology, equipment, construction plan, major raw materials and transportation, public engineering, energy-saving, environmental protection, fire-fighting, etc. The designing philosophy and constructive principle are fully elaborated in a multi-perspective way. Particularly, this paper addresses the great social concern on environmental issues, including the prevention and treatment of pollution and impact on environment.Based on the financial data, calculations are made on the estimation of investments, fund-raising, internal return rates, NPV, payback period, etc. Breakeven point and Sensitivity analysis are also done to provide rationales for the project.After static and dynamic calculations and analysis, all economic indicators of the project are higher than the average of industry, among which, the FNPV is 6,180.152 million before tax and 4,980.522 million after tax. The IRR is 34.37% before tax and 30.97% after tax. The results are confirmed by interpolation and excels. The expected payback period is 5.55 years after tax and the breakeven point is 21.4%.All the financial indicators prove the strong profitability of the project. The payback period is short. The breakeven analysis shows that the project can function well as long as the annual return is over 21.4% of the plan. The Sensitivity analysis shows that the project is with strong power of risks resistance. Overall, the investment in this project is feasible.