Chapter 181 Investing in the Future of Formosa Plastics Group

"Wang Yongqing is indeed quite famous in Taiwan." Wei Zetao did not think much about it and continued, "He started selling rice at the age of 15, made his first pot of gold, and then started the timber business;

Later, he took advantage of the skyrocketing price of wood during the war and made tens of thousands of dollars. In 54, he entered the plastics industry. Now he is the only factory in Taiwan that can produce plastic particles. "

"It's quite interesting. People who can succeed are not easy to deal with." Yang Wendong smiled and asked, "Have you contacted them?"

"Not yet." Wei Zetao shook his head and said, "After getting the general information, I came to report to you. I plan to go to Taiwan and take Lao Hong and others to actually inspect this company;
Let’s see if the particles they make can meet our requirements.”

"Okay, let's go." Yang Wendong nodded and said, "I'm not too sure either. I'll consider whether to cooperate with them after I get in touch with them."

Although Wang Yongqing will be very famous in the future, he is still in the early stages of his business, and it is hard to say what the quality of his company's products will be.

It is even possible that the particles made by others do not suit your requirements.

"Okay, after I contact them, we'll be ready to set off." Wei Zetao followed.

"Yeah." Yang Wendong agreed. Taiwan is really close to Hong Kong. You can get there by taking a speedboat and sleeping for one night.

Three days later, Wei Zetao, Hong Xuefei and six others set off for Taiwan.

After returning three days later, Wei Zetao and Hong Xuefei went to Yang Wendong's office first.

"You two, have some tea." Su Yiyi originally wanted to make tea for Yang Wendong, but since the other two were there, it would be awkward to refuse.

Wei Zetao and Hong Xuefei were immediately flattered and said, "Thank you, Miss Su."

If it were in the past, Su Yiyi had a good relationship with the boss, and they would generally just give her enough face; but now it is different.

Su Yiyi smiled and said, "You're welcome."

After taking a sip of tea, Yang Wendong asked, "How was your visit to Fumao?"

Hong Xuefei, who is in charge of technology, said: "Mr. Yang, the plastic particles from Formosa Plastics may not be suitable for our company. Their particles are mainly used to make PVC pipes, which are mostly used in the construction industry."

Wei Zetao also said: "Yes, although they are all plastic particles, the various performance parameters are different, and more importantly, the safety levels are also different. Formosa's pipes are mainly used for drainage and have almost no safety level. They are of a relatively low level."

"That's a pity." Yang Wendong nodded.

There are tens of millions of types of plastics, and the differences between them are huge. Although Yang Wendong does not know much about them, he knows some important properties of plastics, such as flame resistance, hardness, toughness, density, corrosion resistance, etc.

The demands for plastic types vary greatly among different industries. When deciding what plastic to use for suitcases, we also referenced many European and American standards and other daily necessities.

"However," Wei Zetao added, "We also met Formosa Plastics' boss, Wang Yongqing. He also knew you, Mr. Yang, and knew that we wanted to find a plastic particle supplier in Taiwan. He was also very interested.
So he wants to come to Hong Kong to visit you in the near future. You decide the time."

"He's coming to Hong Kong?" After listening, Yang Wendong said, "Okay, let him come. As for the time, let's say he can come in the next week. It's just right for him to learn about the situation here."

"Okay, then I'll call him this afternoon to inform him." Wei Zetao said.

On July 7, Yang Wendong met Wang Yongqing, the former richest man in Taiwan.

Of course, as a person of the Internet age, Yang Wendong had never paid attention to Wang Yongqing's photo, he just knew that there was such a person.

At this time, Wang Yongqing was very thin, almost abnormally thin, just like the poor people in Hong Kong. But it was obviously not the case that he lacked food. It was probably because of his poor stomach.

"Hello, Mr. Yang. I've long heard of you." Wang Yongqing had no idea what Yang Wendong was thinking. After Wei Zetao introduced him, he smiled and shook hands with him.

Yang Wendong also shook hands and said, "Hello, Mr. Wang. I'm in Hong Kong and I've heard of your name."

"Oh, my name is also a little famous in Hong Kong?" Wang Yongqing asked curiously, feeling a little happy in his heart.

As early as the last time Wei Zetao and others visited Formosa Mau, he investigated Yang Wendong's situation, including his previous history of success, current industrial distribution and the potential of future products.

A very surprising conclusion was reached: Changxing Industrial's existing products alone have an astonishing demand for plastic raw materials.

Therefore, he came to Hong Kong in person.

Yang Wendong said with a smile: "I've heard before that Mr. Wang expanded his plastic production line against the market trend. He really did something that ordinary people can't do. After learning more about it, I have to admire him."

Most people in previous lives knew about Samsung’s counter-cyclical price war, and Wang Yongqing in front of us also used a similar method.

According to the information he found, in 1957, no one was interested in his plastic particles, and some company shareholders were thinking of reducing production to stop losses, but he did the opposite. He bought back the company's shares while borrowing heavily to expand the scale.

In the end, we survived the most difficult time by expanding our scale and reducing costs.

This move can be said to be a desperate move. People who can be so decisive are all ruthless people, and they have strong confidence and awareness in their careers. Otherwise, who would dare to do this?
Wang Yongqing was very happy to hear the compliment and said, "Mr. Yang, you are too kind. When I first entered the plastics industry, I was determined not to give up until I succeeded.

Otherwise, if I were to go into other industries, the risk would be much smaller.”

"Well, that's why I admire you." Yang Wendong said with a smile.

He really admired those who devoted themselves to doing business, such as the private giants in the country in his previous life. If Yang Wendong were to do this, he would definitely be willing to invest in business, but high-risk investments might even cause him to go bankrupt, so he would instinctively refuse.

Of course, as a time traveler, he knows the direction of future technological development, so this possibility basically does not exist.

After everyone was seated, Yang Wendong said, "Mr. Wang, I wonder why you came to Hong Kong to meet me this time?"

Wang Yongqing said: "Of course it's for our cooperation."

Yang Wendong asked, "But my people told me that the plastic particles your company currently produces are mainly used to make water pipes and are not suitable for civilian products. So how can we cooperate?"

Wang Yung-ching replied, “Yes, Formosa Plastics’ plastic particles are mainly used to make pipes, which is the biggest demand of Taiwanese society;
However, if you need it, I can build another factory specifically for producing the several types of plastic particles you need."

Yang Wendong was a seasoned businessman. He understood the meaning of this and asked, "Mr. Wang, do you want me to place a stable, long-term order first, and then you can build a factory?"

Wang Yongqing said with a smile: "Mr. Yang, if your demand is only about 100 tons per month, then my current factory may be able to cope with it with a few minor changes;
However, according to my speculation, your needs are far more than this. If you want to meet your needs, you must build another large factory.

But such a large factory requires too much investment. If I build it and you don’t want it, I might really go bankrupt.”

"That's true, but you haven't even made anything, and you want me to sign a large-scale cooperation agreement with you. Isn't this request too much?" Yang Wendong said with a smile.

The production capacity of trolley cases in the future will inevitably be terrifyingly high, because once this thing becomes convenient, it can be used not only for traveling, but also for daily moving and short-distance travel.

Even if you don't consider having patents, as long as you find ways to reduce costs in all aspects, you can still gain part of the market. After all, Hong Kong's manufacturing industry in history did not rely on patents, but on low costs and various "volumes".

Wang Yongqing nodded and said, “That’s true, but I can also guarantee that I can produce plastic particles that meet your requirements;
This industry is actually not difficult from a technical perspective. At worst, I can recruit people from Japan to make plastic raw material particles. The most difficult part is the initial large-scale investment, various chemical substances and petroleum derivatives on the supply side, and big customers like you.

The raw materials are available in Taiwan, and I can be responsible for large-scale investment, but you also need to become a major customer. This way, it will be good for both of us, killing two birds with one stone."

"That's true in theory." Yang Wendong nodded and said, "But how about we change our thinking? It's not realistic for me to sign a purchase agreement worth millions or even tens of millions with you when there's nothing, but your analysis makes sense.

How about I invest as well? This way I can reduce your risk and increase my future income, isn’t that killing two birds with one stone?”

"Mr. Yang wants to invest in a plastic production factory with me?" There was some disbelief in Wang Yongqing's eyes.

Plastic production factories are asset-intensive. Although the potential is good at present, there are still relatively few people willing to invest in heavy industry, otherwise he would not be the only one producing plastics in Taiwan.

Yang Wendong shook his head and said, "It's not about building a factory with you in a joint venture, but about me investing in your Formosa Plastics Company. What do you think?"

Under normal circumstances, he would not invest in a plastic pellet production company even if it had a bright future;

First, they don’t understand the industry. Second, this kind of capital-intensive factory requires too much investment, and it is hard to say when the cost can be fully recovered. And it is highly likely that the factory will continue to invest after making money.
If they are not listed, it is very difficult for such companies to cash out.

But after listing, investors generally do not like such companies because the essence of the stock market is storytelling.

Real estate, future technology or Internet companies, and civilian industries are all areas where you can tell stories, but heavy industry is more difficult, as even if you can, most investors won’t understand them.

But Wang Yongqing is different. He will build the world's largest plastic manufacturer in Taiwan in the future. If you invest now, the return will probably be a hundred times higher than investing in real estate in Central.

Wang Yongqing thought for a moment and said, "I have never thought about this question."

Yang Wendong nodded and said, "It doesn't matter. You can think about it slowly when you have time. There is no rush for this matter."

Wang Yongqing continued, "Mr. Yang, I am very grateful that you are interested in my company, but I don't want to give up too many shares."

"Well, it doesn't matter. The number of shares can be negotiated." Yang Wendong paused and added: "If the funds I invested are not enough to build a new factory, then I can add additional funds, either as shares or bonds.

Or you can borrow money from a bank in Hong Kong. I can guarantee that there won’t be any funding problems.”

Wang Yongqing thought for a while and said, "Then I'll go back and think about it. In addition to the shareholding, it also involves our future supply cooperation;
If we can eventually operate as a joint venture, the supply issue needs to be negotiated first.”

"Okay, I won't give you all the orders right away, but as long as there are no major problems, we can gradually increase the purchase volume." Yang Wendong smiled and said, "As for the specific numbers, we still need people from both sides to sit down and discuss it carefully."

"Okay." Wang Yongqing nodded. He came here to find clients, but he didn't expect that Yang Wendong actually wanted to invest in his company.

Yang Wendong smiled and said, "Well, if Mr. Wang is not in a hurry to go back these two days, you can have fun in Hong Kong. It's my treat."

"Thank you." Wang Yongqing did not refuse. For people at his and Yang Wendong's level, this amount of money was just like buying a bottle of drink between ordinary people. If he refused, it would be a loss of face.

Afterwards, Wei Zetao saw Wang Yongqing off. Su Yiyi, who had been silent, asked, "Brother Dong, this should be your first time investing in another company, right?"

"Yes, if successful, then it is." Yang Wendong nodded.

He did not make his fortune in finance, so he only tried to invest in Ming Pao last year, but was rejected by Jin Yong.

Even his suppliers are generally joint ventures rather than investments.

Su Yiyi asked curiously, "Why are you so optimistic about this plastic company? I remember you said before that ordinary factories don't make much sense to invest in, right?"

PS: Please give me a monthly ticket
(End of this chapter)

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