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Case Study Of Iccep Inc

3222 words - 13 pages

1. Research Background and Purport1.1 Background Introduction1.1.1 Yizheng Corporation Company Engineering Plastics Plant SurveyYizheng Corporation Company Engineering Plastics Plant (YPEPP) (www.ep.ycfc.com) belongs to China Petrochemistry Corporation Yizheng Corporation Company (www.ycfc.com), which is the largest manufacturer of the PBT resin and engineering plastic in China. The PBT resin and engineering plastic, one of the five types of main product which is engineering and PBT, has the capacity of manufacturing twenty thousand tons of high quality PBT resin with low, middle and high; the three agglutinate degree and ten thousand tons of alterable engineering plastics. The plant owns ...view middle of the document...

PBT resin is applied widely in many fields due to its excellent performance. For instance, PBT resin can be compounded with different additives and filling materials so as to get PBT engineering plastics of different performances, which is applied in the electronic and electric fields; it is also used in filature and crank out cloth applied in the costume field; either applied in the telecommunication industry such as ray fiber jacket etc. The chemical byproduct was mainly used as menstruum in the curatorial industry.One-thousand-per-year compounding equipment is introduced by Buss AG, which adopts the single screw belonged to the patent technique of Buss AG. The setting is effectively dispersed and commingled PBT or other resins with fiberglass and some other fillings and additives, and varieties of engineering plastics is completed which can be used under many situations. (The application area is very extensive and continues to expand along with the incessant exploiting of downriver manufacturer.)In the long term using these two sets of polymerization and compounding equipment, Yizheng Engineering Plastics Plant rebuilds the equipment technique on time according to the situation of manufacture running and the response of the market. At the same time, the plant forms its own proper technique gradually and its product quality improves constantly, the rate of product checking out reached more than 99% in 2001.In the manufacturing process, the resin agglutinate was steadily and uniformly kept (in the controllable range of warp) as a result of the continuous process. Compared to the batch process adopted by the other domestic competitors, the steadying product quality is the main advantage of the continuous process (in batch process, after finishing every chemical process, needed cleaning and then to proceed to the next chemistry. Because the chemical condition cannot be kept the same completely, the product quality of every step is not so steady and the product quality of the continuous process is cheesy. Besides, dealing with the byproduct is troublesome because of high single consuming. Thus, the continuous process begins substituting the patch process nowadays.) It is predictable that this set of equipment and the operating experience in five running years will win the advantage for the Engineering Plastics Plant in domestic market competition in a period of time. However, the item's investment amount is very high (approximately RMB400, 000, 000), while the working capital is insufficient (less than 20%) and the investment roots in bank loan, which leads to the product fix cost is on high. Additionally, the demand in and out of the country is short, exploiting market is hard, which result in the throughput not being brought into play enough, the benefits fail to reach the expectant figure in the trial manufacture period, and the plant faces extensive austere challenge and aggressive market competition.1.1.2 The brief introduction of Supply...

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