Wood Processing Project Feasibility Analysis Report

Wood acts as an important role in economy and is widely used in such industry as building, furniture, decoration and package. In 2009,consumption of log in our country reach 300 million cube.Annual sales revenue is above RMB 300 billion. Lumbering has long indurstrial chain.There are numerous products and source of profit in this indurstry. Sichuan Province is the second largest forested area in China.Its indurstry of logs and furniture enjoy high reputation around the world.Many famous brand of furniture such as "QuanYou", "DeYi", "ShuangHu", "TianZi"located in Sichuan.As a result,it leads to tremendous demand of wood and MDF.Indurstry of rough-machining wood lies in the middle position of wood indurstrial train.Though there is low entry threshold,little difference between products and strong competition,it is a good access to lumbering.MDF has bright market prospects.So MDF can be elected one of target markets.MM company is No.1 of one segment market of automobile parts.It has a tremendous amount of net cash flow and low growth rate.Then it needs a new project in order to achieve profit growth point. It has a subsidiary company in Dayi County which is one of main production base of log in Sichuan Province. So there is somewhat advantage in upstream resource of logs.This company pays great attention to the strategic value of lumbering and want to take rough-machining wood and MDF as the bridge to lumbering.The rough machining wood is divided into three kinds,for buiding,for furniture and for package. Through analysis of national policy,the demand of market, competitors and profit level,we find opportunities in rough machining wood. We collect a great mumber of data of demand, price, competitors and cost about these segment market, foucs on target market, work out investment budget and make prediction of profit. The author passes technical feasibility analysis through comparative study of production line,quality of products and environmental protection law. The author passes marketing feasibility analysis through comparative study of the demand of market, customer type and competitors. The author passes financial feasibility analysis through comparative study of internal rate of return, period of investment recovery and net present value.In sum, The author can draw a conclusion that this project has good economic, social and synusiologic value, comply with the state industry policy.The author hopes that this article can help these enterpriseand individuals who want to engage in lumbering.