Analysis On The Investment Decision Of DLD’ S New Factory Project

With the reform and opening up of the three decades in China, the development of the construction is dramatically fastened. It is a great time for the national railway transportation equipment manufacturing industry. Because of the more than60years development, China’s equipment manufacturing industry, as a pillar industry of the national economy, already has a considerable production capacity and establishes an industry system with a certain level of innovation capacity and foundation level. However the issues, like being large but not strong, being comprehensive but not proficient and incompact industrial structure generally exist in our equipment manufacturing industry. Facing the opportunity of constantly developing in China, it is very necessary for the equipment manufacturing enterprises to seek a way for innovation and development, seizing the very opportunity to make the enterprises larger and stronger and making contribution to the development of the national equipment manufacturing industry.DLD is not only a well-known enterprise in equipment manufacturing industry with a history of more than one hundred years, but also a large and important national enterprise, because it is the only one which can be able to simultaneously develop diesel locomotives, electric locomotives, diesel engines and urban rail vehicle. The company was praised by the Party and the State’s leaders as "the cradle of the locomotive." In the process of development in recent years, due to the existed factory area, the new development goals of the company cannot be implemented. Because the plant construction and equipment configuration cannot meet the need of the scale and specialized production, the company needs to change the dilemma of the present production models by plant relocation.In this paper, the author uses the new factory project of DLD as research object and adopts the scientific and systematic theory and method of project management to find out the main bottleneck which restrict the development of DLD and figure out the company’s position in this industry, also compare advantages and disadvantages from both international and domestic. On the basis of sufficiently research of marketing environment of company’s products and enterprise competitiveness, the author figures out the meaning of the new factory project and expected goal, submits the detailed technology and implementation plan of this project, assesses the technical and economic feasibility and investment risk and other factors. Eventually the investment decision conclusion of DLD new factory project is confirmed.The study not only can solve DLD Company’s relocation project, but also can enhance the core competitiveness for DLD by integrating resources, restructuring elements, and reengineering process. In addition, it can also provide a new way of thought and reference for investment decision analysis of similar construction project.