Research On The Investment Of The JHX Vicose Filament Yarn Project

Project investment has become an economic behavior also is an important meansfor the further development in the overwhelming majority of enterprises in China.Either the technical transformation project investment, or infrastructure projectinvestment, is the need to occupy the enterprise a lot of manpower, material resourcesand time. If the project investment is failure, it will cause a huge waste for anyenterprise. Therefore, how to ensure the smooth implementation of the projectinvestment, how to realize the project investment benefit, how to promote enterprisesto accelerate the development, has become the urgent solution in the process ofproject investment cooperation problem for the many domestic enterprises. There aremany uncertain factors in the process of investment in construction projects, thusleading to the future prospects for the development of enterprise unpredictability.Through survey and analysis on the JHX Ltd Company’s5000tons ofdifferential viscose filament project, we have expounded the project background,project investment cooperation, construction project, and the operation efficiency. Inthis paper, we have detailed investigation of the project investment and constructionprocess each link, causes since the operation continued loss of the research project,and the project is in various stages of research, construction and operation of suchproblem systematically analyzed.JHX Limited by Share Ltd leading enterprises in the domestic chemical fiberindustry to improve their production technology, enhance the competitiveness ofproducts in the market, with the international well-known viscose filament productionenterprises Germany ENKA company invested in the construction of5000tons of differential viscose filament yarn project. The project relies on the JHX of the assetsof the Limited by Share Ltd in strength, relying on the CHEV continuous filamentspinning patent technology, the production of high-grade difference viscose filament,and through the German ENKA company original sales channels toforeigndistribution60%, production technology and the downstreammarket demandhas the project a certain assurance.This kind of the cooperation can not return on investment. Due to the process ofinvestment, investors had a failure in many links, including:(1) the linkingproduction technology is not sufficient;(2) the overall project management processesare too extensive;(3) put into production after the production cost control;(4) in themacro market environment worsening situation;(5) weak market competitiveness ofexport products of the project;(6) product backlog serious. These reasons lead to thatproject production capacity utilization rate is insufficient, and the sales income of lessthan50%project design level, so the investment benefit does not reflect. Throughthe analysis of the JHX Ltd Company’s5000tons of differential viscose filamentproject, we can see that the project investment needs to cost much manpower,material resources and time.Therefore, in view of the above situation, in order to ensure the implementationof the project investment benefit, we put forward four tentative solutions andsuggestions:(1) the rational investment decision;(2) management implement strictproject;(3) reasonable control product cost;(4) planning products target market ofscience. Provide ideas to improve the domestic enterprises in the face of similar cases.