Chapter 196 Cargo Ship Across the Ocean

Chapter 196 Cargo Ship Across the Ocean

Chapter 196 Cargo Ship Across the Ocean

"Haha, it seems that a 10% price reduction can make everyone crazy." Yang Wendong said with a smile.

Wei Zetao nodded and said, "Of course, they are not Changxing Industrial. The profit margins of the dozens of factories that came here today are estimated to be only 10 to 20 points.

If the price of this most important raw material can be reduced by 10%, it may increase net profit by several tens of percent if converted into profit.”

"Well, about the same, except that plastic flowers may have a higher profit." Yang Wendong agreed.

Hong Kong's current manufacturing industry has only been in operation for more than ten years, and it only produces low-end products. For example, the textile industry can basically only produce cheap clothes and socks, and the plastics industry basically only produces the most basic plastic products.

These factories do not have high technical content and are purely dedicated to earning hard-earned money, and their profits are completely controlled by the front and back ends.

Wei Zetao added: "Some factories have already booked the next batch of plastic pellets, but I think some of them just want to sit back and watch the fight between us and those trading companies."

"Normal, they would do the same if I were them." Yang Wendong didn't care at all and said, "Now we are buying goods from the United States, even if we bring them back, the cost is not low.

I guess those trading companies still have plenty of profit margins, and they will definitely cut prices to grab market share.”

"Yes, over the years, those monopoly trading companies have made a lot of money." Wei Zetao also nodded and said, "If we want to defeat them completely, we still have to wait until Wang Yongqing and Wang Sheng's new factory is built before we can succeed."

"That's what I think." Yang Wendong agreed and said, "Let's compete with them normally first. Don't disclose our investment in Taiwan yet. By the middle of next year, we will use Formosa's price to completely drive this foreign company out of the market."

Once plastic particles can be produced in Taiwan, coupled with Wang Yung-ching's strong management ability, it will be impossible for plastic particles in Hong Kong to have a lower cost than Formosa Plastics.

After all, in history, Formosa Plastics was able to become the number one in Asia in the field of plastic production, and its cost control capabilities must also be top-notch. This is also why I am optimistic about Wang Yung-ching.

According to the previous cooperation agreement, Changxing Trading Company has the exclusive agency rights in the Hong Kong market. By that time, it will be Changxing Trading's turn to dominate the Hong Kong plastic particle supply market.

In the future, trading companies may even be able to expand into other areas to seize the markets of those monopoly foreign firms.

Wei Zetao said with a smile: "We also have to thank these trading companies for raising prices last time, which forced us to invest in the supply chain.

Now we are about to have a very cheap industrial chain, so they can get out of here.”

"Haha~" Yang Wendong nodded and said, "They asked for their own death."

In fact, this is normal. There are too many companies in human history that have brought their own destruction. Capital is greedy. It will exploit others for short-term benefits, which may force others to find other ways out. As a result, when others find a way, they overturn the previous way.

……

In the evening, Li Jiacheng returned to his home in a villa in North Point.

When Zhuang Yueming saw Li Jiacheng coming back, she quickly brought a bowl of prepared fruit and asked, "What's wrong? You look a little sad.
Wasn't I invited to Tsim Sha Tsui by that sticky note king Yang Wendong today? What's so mysterious? "

Li Jiacheng smiled and then said, "It's like this, we went to a warehouse over there, and it was full of various plastic particles, which he bought from the United States.

......"

Li Jiacheng told Zhuang Yueming what happened today without any haste.

After listening to this, Zhuang Yueming said, "This Yang Wendong is really ambitious. Does he want to take advantage of his shipping company to dominate the supply market of plastic raw materials in Hong Kong?"

"Yes." Li Jiacheng nodded and said, "But having ships alone is not enough. There are many large companies in Hong Kong that have ships, but only Yang Wendong can do this."

Zhuang Yueming also understood immediately and said, "It's because his products are popular in the United States, and they just need to be shipped there. When they come back, the material cost is also low."

"That's one aspect." Li Jiacheng sighed and said, "In addition, Changxing Industry itself is the largest customer of plastic particles, so even if it cannot be sold, it will not worry about not being able to use the plastic particles.

With large-scale purchases, low transportation costs, and large capital operations, he has the opportunity to replace those monopoly foreign companies. "

A combination of multiple reasons enabled Yang Wendong to accomplish this. Otherwise, even if the shipping giant Wheelock were to do this, it might not be successful.

"Indeed, we can't make it. Our plastic flowers don't need so many plastic particles, and the investment is too large. We can't buy a boat either." Zhuang Yueming nodded, and then asked in confusion: "Then why do you look unhappy? Isn't it good for you if Yang Wendong breaks the monopoly?"

"Who wouldn't want to monopolize if they can?" Li Jiacheng shook his head and said, "Once Yang Wendong defeats others with his scale, won't he be the new monopoly company?
I’m afraid the price will go up by then, because all crows are the same.”

Zhuang Yueming asked back: "This is normal. If it were you, wouldn't you want to monopolize? Wouldn't you raise the price after monopolizing?"

"Uh..." Li Jiacheng shook his head helplessly and said, "Maybe I can do that too."

Zhuang Yueming said, "Don't worry about the future. At least now Yang Wendong is preparing to compete with several import companies for the market, so there will definitely be a price war. At that time, we may be able to take advantage of the opportunity to make a fortune."

Li Jiacheng smiled and said, "That's true. Anyway, I am also planning to invest my main energy in real estate."

Zhuang Yueming nodded and said, "Yes, but don't give up on the plastic flowers."

"Of course." Li Jiacheng nodded and said, "It's just that there are more and more people in this industry, and business is not as good as before!"

Zhuang Yueming said, "Yes, if too many people know how to do it, it will be worthless. It would be best if you can do something unique like Yang Wendong."

"It's not that easy." Li Jiacheng shook his head helplessly.

……

The next day, Central: Fisher hurried into an office and said to several foreigners inside: "The price of Changxing Industrial has come out. The general price is 10% cheaper than ours."

"10%?" Steve, the leader, said, "We can also lower this price."

Ted next to him said quickly: "Then let's lower the price quickly. As long as we rely on price war to drive him out of this market, we can make up for it by raising prices later."

Steve frowned and said, "It's hard to defeat him completely. The factory behind him has very high profits. If we really start a price war, we may not be able to beat him.

I just hope that he can see that there is no hope and then be willing to reach an agreement with us."

Fisher agreed and said, “Yes, I also hope that he just wants to do this business by the way, rather than stealing our family business;
I calculated that he only has one ship, and even if he can travel between the United States and Hong Kong a few times a year, the plastic particles he can bring back are not enough for the Hong Kong market. "

"That's good news." Steve thought for a moment and then asked, "Will he buy another boat?"

Fisher shook his head and said, "I don't know about that, but even if they want to buy a second-hand ship, it won't be that fast, right? Even Wheelock will be very cautious about a transaction of hundreds of thousands of dollars."

"That's right." Steve also thought it made sense.

There are a large number of ships in the world, but there are far fewer of them being traded, and there are also many buyers. There may also be various situations where the ships do not meet the requirements. It is not easy to buy another one or even several cargo ships, even if you have money.

February 12:
The eighth floor of Hong Kong China Building is currently the headquarters of Changxing Shipping Company.

Yang Wendong said with a smile: "Everyone, today is the first time that all the management of Changxing Shipping Company have met together."

Previously, as the captain, Sun Zhiwei took all the backbone members of the first ship on a long voyage to the United States. Later, he also recruited a professional manager Zheng Yuhua in Hong Kong, and asked her to build the framework of the entire company.

"Let me introduce everyone to you." Zheng Yuhua also stood up and introduced each person.

On one side were the people on the ship, and on the other side were the people who were recruiting in Hong Kong during this period. Today I got to know them all.

After everyone got to know each other, Yang Wendong asked Sun Zhiwei, "Old Sun, is there any problem with the cargo ship on the way to and from Hong Kong?"

Sun Zhiwei said: "There is no abnormality, everything is normal. It can be seen that Oslo Company has been maintaining the ship well."

"Well, that's good." Yang Wendong nodded, and then said to everyone: "Then there is one more thing that needs everyone to do together, and this thing is also quite important.

Mr. Sun told me before that there would be a batch of second-hand cargo ships from the 40s ready for sale in the United States. After Ms. Zheng joined the company, she kept following this matter and the United States had already contacted her.

I want you and the captains and ship engineers present to go to the United States to investigate and see which ones are suitable for us to buy.”

During this time in Hong Kong, in addition to Zheng Yuhua, Yang Wendong also recruited three captains and several first mate-level senior executives of ocean-going ships in advance.

Later, he will definitely add cargo ships, but he is not sure where to buy them. However, he can prepare the people first. Anyway, labor costs in Hong Kong are really not expensive, and a captain only makes two to three thousand Hong Kong dollars a month.

Yang Wendong added: "Ms. Zheng has been following this matter, so let's ask her to introduce it."

"Okay, Mr. Yang." Zheng Yuhua continued, "I have already commissioned a related American intermediary company to investigate this batch of cargo ships. It is indeed as Mr. Sun said, they were manufactured during World War II.

In terms of safety, there is no problem. The only drawback is that the fuel consumption is a bit high, but for us, it is not a big problem.

Since the US government wants to scrap these ships, we can take them back and use them as ships for just a few years, which is very cost-effective.

But there are a lot of these ships, so we have to select the best quality ones, so this requires very experienced captains, shipping engineers and the like to confirm. "

Sun Zhiwei thought for a moment and asked, "Can we try sailing in the United States?"

Zheng Yuhua replied: "Of course, but we will have to pay for it. We can't test all the ships, so we still have to rely on experience to determine which ships might be better before testing them, and then spend money on testing them."

"Yeah." Sun Zhiwei also thought it made sense.

At this time, a captain named Lin said, "Mr. Yang, Ms. Zheng, in fact, we are not the only one in Hong Kong. There are other shipping companies that intend to buy these ships?"

"Is it Ship King Dong?" Yang Wendong asked back.

This Captain Lin was poached from Tung Chao Yung's staff.

"Yes, Jinshan Shipping sent people to the United States before I left." Captain Lin said, "But I'm not sure about the specific situation."

"Well, this kind of second-hand cargo ship is indeed suitable for the Chinese fleet." Yang Wendong said, "Ms. Zheng, please arrange for someone to go to the United States as soon as possible to negotiate this matter with the government departments there."

In the early stages of starting a business, it is natural to use second-hand products whenever possible, mainly because they are cheap and have a quick delivery time.

Yang Wendong thought so, and so did other shipping tycoons. They would only consider buying a new ship once they had acquired a certain level of strength.

Zheng Yuhua agreed and said, "Okay, I'll arrange it as soon as possible."

At this time, Sun Zhiwei asked again: "Mr. Yang, the Shun'an is undergoing maintenance and loading, and will soon sail again. We must arrange for one of us to be the captain."

At this time, Captain Lin said, "Let me go on this voyage."

"Okay." Yang Wendong nodded in agreement. Captain Lin was probably also worried about running into Dong Haoyun's people.

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