The Research Of Investment Risk Management For Sofima Company Chong Qing Project

At present,China auto market has become the world's largest market.The huge potential and rapid development of China's auto market have promoted OEMs and auto part SMEs to significantly increase their production scale,investment scale and market development in China.China's economy and the world economy are inseparable and the transfer of foreign auto parts companies to China's production capacity and market expansion will continue.Therefore,the risk management of multinational companies investing in or building new projects in China is more important.Research object of this paper is Shang hai Sofima auto filter corporation,which is subsidiary in China under UFS Group,the headquarter Italy,established in 1996.Due to the continuous development of business in China,and the continuous improvement of cost,time and service requirements of the OEM,meanwhile it is open up the market in Western China.Sofima company decided to invest a new plant in LiangJiang district of Chongqing to meet the company's development strategy needs.Through literature analysis,quantitative analysis and investigation to discover risks faced by company's investment project in policy,economy,auto parts market,cost management,investment management,talent etc,analyze the source of risks and control these risks to ensure smooth production of investment project.Specific risks include: industrial policy risks,legal and regulatory risks,environmental pollution risks,transportation logistics risks,filter industry competition risks,management technology talent risks,project schedule risks,energy cost risks,and labor cost risks,finance risks.The control measures include:(1)specific local investigation and understanding of the actual situation.(2)Analysis of actual data.(3)Project time control method.(4)Specific process analysis method.This paper has certain practical significance for the company through risk research of Sofima Chongqing Project.It will help the company to understand more about the competitive landscape and competitive intensity of the automotive market in western China,comparing with competitors their own advantage and disadvantage,further optimize human resource allocation and costs,effective control of project cost and projectschedule,have a good quotation for customer new project,further optimize the type of products produced in Chongqing plant.