Chapter 397: Buying a New Ship and Changing Positions with the Chinese Shipping King

Chapter 397: Buying a New Ship and Changing Positions with the Chinese Shipping King

Chapter 397: Buying a New Ship and Changing Positions with the Chinese Shipping King
"1000 people?" Yang Wendong thought for a moment and said, "This number is a bit too high."

In Hong Kong, adding 1000 jobs is not a big problem for Changxing Industrial at present, but this number is very large in Europe and the United States. Although it is difficult to make a specific comparison, in terms of investment, it is probably equivalent to adding 5000 jobs in Hong Kong.

Sean said: “Eric, this matter does require some requirements, otherwise the British government would not have made such a commitment;

Moreover, I see that your industrial scale in Hong Kong is not too much to add a factory with 1000 people in the UK. In itself, many of your products are not suitable for long-distance transportation. If you produce them in the UK, you can also cover the European and American markets. For us, this is a win-win situation. The British government also hopes that the companies that come to invest can really make a profit. Only in this way can we have long-term cooperation. "

Solving the problem of port workers is an important issue, but more importantly, it is to restore the British economy. The British native population is very small. If it wants to recover, it must focus on exports so as to promote domestic employment.

When Britain was once powerful, it could dump industrial products in the colonies, but this is no longer possible. Not only can it not dump, but many companies in the colonies are competing with British brands. With the United States eyeing it from the outside, Britain can only maintain the principle of free trade within the Commonwealth, otherwise the independent Commonwealth market will fall apart.

In this way, the best way is to attract large companies within the Commonwealth to invest in the UK.

"." Yang Wendong paused for a moment, drinking tea to quiet down the scene, and then said, "Mr. Sean, I know that the London government also hopes to use this purpose to absorb port staff, so I want to ask, are these the people to be recruited?"

"Yes, the London government will arrange employment for them." Sean also understood what Yang Wendong meant and said, "We promise that we will also consider their abilities and the needs of your company."

"If that's the case, then there's nothing to discuss about this matter." Yang Wendong shook his head and rejected the idea. "The investment funds and employment population can be negotiated, but I won't agree to the recruitment. If you want me to invest, I will decide where to invest, and it will be limited to the UK. The same goes for the people to be recruited."

Although this is a negotiation and I hope to reach a certain level of cooperation with the UK, there is a bottom line for everything, and if it doesn't work then forget it.

The main reason is that this factory, although not making a lot of money, at least can ensure normal operation. Even if it loses a little in the future, as long as it can make a profit in other aspects, it is worth it.
However, the biggest trouble for European and American factories is workers making trouble. Although I am willing to take care of the workers, I am not without bottom line. If I don’t handle this matter now, there will only be endless troubles in the future, and it may even affect my relationship with the British government. That would not be worth it.

After listening to this, Sean was silent for a moment and then said, "This matter still needs to be discussed with the London City Government. After all, they proposed this proposal, and they definitely need to invest in London."

"It's true that the current issues are still uncertain." Yang Wendong suddenly smiled and said, "But at least we can have an initial intention. We don't have to finalize all these things today."

When it comes to foreign investment, even in the 21st century, it will take at least a few months at the fastest, and possibly one or two years at the slowest, so there is no need to rush.

The important thing is that both parties reach an agreement on some principled issues. Once this issue is resolved, all that remains are some negotiations that will take time.

"Okay, Eric." Sean nodded and said, "It's nice to meet you. I'm in the UK and will be waiting for your people to come for inspection."

"Okay, I'll send someone to London as soon as possible." Yang Wendong agreed.

After the intention is reached, an on-site inspection is required. Since the investment details are still uncertain, the negotiation details are naturally uncertain. The next step is for the investor to conduct the inspection and roughly decide on the investment scale, investment location, etc., and then further negotiate.
After Xiao En and the others left, Yang Wendong said to Wei Zetao, "Is Lin Youqing back?"

Wei Zetao replied: "He is back. You told me about this 5 days ago, and I let him take the nearest flight back."

"Well, let him come over." Yang Wendong said.

Wei Zetao said: "Okay, he's already here."

Soon, Lin Youcheng arrived. Yang Wendong said, "Sit down, Lao Wei, and tell Lao Lin about the matter."

"Okay, Mr. Lin, this is what happened." Wei Zetao told him what had just happened.

After he finished speaking, Yang Wendong said, "Lao Lin, I didn't ask you to come to the scene just now because I considered that you would need to go to the UK to conduct a detailed investigation later. If you show up, I'm afraid the British side will be prepared."

"I understand. What does Mr. Yang want me to investigate in the UK?" Lin Youqing said.

Yang Wendong said: "I am more concerned about the British trade unions and the workers' work attitude. We can invest in the UK, but we must choose a safe environment for production.

Whether they make money or not is not the point, but the quality of their products cannot have major problems. If some people have a bad attitude, then we should try to avoid hiring them.”

If there is a problem with the products produced in one place, it will definitely drag down the entire brand. This is why many international brands are cautious about opening production bases overseas.

"Okay, I understand." Lin Youqi nodded and said.

Yang Wendong went on to say, "Also, please focus on investigating some of the retail industries in the UK. If we invest in the UK, we should get some extra benefits. This will be fair."

Although the UK domestic market is not very large globally, it is still much stronger than Hong Kong + Taiwan. At least in the retail sector, the market is still very large.

However, it is not easy to enter the British retail market, but you can't give up just because it's not easy. At least you have to try to cross the river by feeling the stones first. As long as you are careful, even if you fail, you will only get your shoes wet.
"Okay, I'll focus on investigating this." Lin Youqing agreed and said, "Besides retail, do you want to consider other markets as well? For example, real estate?"

Yang Wendong shook his head and said, "No need. We will not participate in real estate, nor will we consider other things. For now, we will just focus on the retail market."

Perhaps, the UK real estate market is also profitable in the long run, but it is definitely not as profitable as Hong Kong, Taiwan, or even Southeast Asia. It is meaningless to participate in it yourself. It is better to invest in something else.
Choosing retail now is not actually a good idea, but the two sides are negotiating now. If I go there to invest, I will naturally want to take part in the UK internal market. Retail is naturally the most suitable option.

"Okay, I understand." Lin Youqing agreed.

Yang Wendong looked at Wei Zetao and asked, "How is the situation going at Formosa Plastics?"

"We haven't calculated the actual estimated value of Formosa Plastics yet. The third party we hired is still calculating, so it will take some time." Wei Zetao replied, "But Wang Yung-ching has made some concessions on the shares. He proposed to give 6.5%. I am still pressing for 9%. I guess we have to wait until we can reach an agreement."

"Haha, I guess Wang Yongqing is just giving himself a way out. He also needs this way out to gradually negotiate terms with us." Yang Wendong said with a smile.

Those who can make it to the top of the world are all shrewd people. It is because they are big customers, major shareholders and have strong financial resources that they have the bargaining power. Otherwise, if the same thing is aimed at Walmart, forget it.

Wei Zetao also said: "Yes, there is another good news. The Taiwan government has also agreed to Formosa Plastics' request to invest in building a high-risk chemical plant. They will allocate a piece of land to Formosa Plastics in a sparsely populated area. This way, it will be easier for us to build a plastic production factory in Hong Kong."

"Okay, what about our progress here?" Yang Wendong asked with a smile.

Wei Zetao said: "The Hong Kong government's Industrial Bureau has also agreed. Simply refining plastics will not cause much environmental pollution. We just need to pay attention to the large amount of chemical products entering Hong Kong.

But the factory site must be far away from human habitation. The Hong Kong government means to allocate a piece of land to us in the north of Tsing Yi Island, and then we will reclaim land and build a small dock to facilitate transportation. " "Okay, that's it." Yang Wendong nodded and said, "Submit all the information to the headquarters office for review. If they approve it, I will sign it. "

There are many professional issues involved, such as the investment amount, investment requirements, etc. Boss Yang Wendong usually does not personally participate. It is too professional. He would be exhausted if he tried to learn it. Unless it is a super large investment project, such as buying a large oil tanker, Yang Wendong will personally study it.
For ordinary investment, Yang Wendong first agrees in principle, and then the headquarters review, risk, and finance departments will participate in confirming various possible issues, and even invite third-party professional institutions to participate. After confirmation that there are no problems, it will be submitted to Yang Wendong for final confirmation. Once signed, it means that the entire project can begin.

This is also the norm for large companies. When the company reaches the size of Changxing Group and has an investment of millions of Hong Kong dollars, Yang Wendong only needs to take a look at it. It will naturally be reflected in the annual report later. He will deal with it later if there are any problems.

"Okay." Wei Zetao said happily.

Once Changxing Industrial starts producing plastic particles in Hong Kong, its costs can be further reduced, which will give it a greater advantage in international competition. The entire industrial chain is the core factor that enables an enterprise to stand firm and is also the pursuit of the entire Changxing Group.

Time quickly came to March 3th.

Wei Zetao submitted a plan to build a primary-scale plastic production plant on Tsing Yi Island, and the relevant departments of the headquarters office also began to review the plan;

Lin Youqiang and some senior executives of Changxing Industrial also went to London, England for an on-site inspection. This time they went there secretly to conduct an in-depth investigation of the investment environment in the UK. Only when the situation is clearly investigated can they proceed to the next step of consultation and negotiation.

If it is a suitable investment, then that would be better. If it is not suitable, then we should also use it to gain maximum benefit.

These two things will not produce results so easily, so we can only wait. Yang Wendong is not in a hurry. Now that the company is developing well, many investments can be carried out slowly.

But some things are not possible, such as purchasing supertankers and cargo ships. The Middle East crisis has lasted for more than three years. If you can get one more ship in the next few years, you can get several times the return in the next few years.
On March 3, Yang Wendong took a chartered plane to the headquarters of Mitsui Engineering & Shipbuilding Co., Ltd. in Tokyo, Japan:

Ichiro Takizawa, the vice president of Mitsui Shipping Group, was the person in charge of the last cooperation negotiation. This time he was still in charge of the procurement business of Changxing Group. He also came to the door of the building with a group of his men.
After Yang Wendong and others arrived, they all bowed and said, "Welcome Mr. Yang to visit Mitsui Shipping Company again."

"You're welcome, everyone." Yang Wendong said with a smile, "Hello, Mr. Takizawa."

"Hello." Takizawa Ichiro smiled and shook hands with everyone, then said, "Please come in, everyone."

Led by Ichiro Takizawa, everyone came to the top floor of the Mitsui Engineering & Shipbuilding Building, where one could see half of Tokyo at a glance.

"Mr. Yang, what do you think of the scenery in Tokyo?" Before the meeting officially started, Ichiro Takizawa stepped forward and asked in fluent English.

Yang Wendong smiled and said, "Not bad."

Ichiro Takizawa replied: "If Mr. Yang is interested, we can give you a top-class apartment in the center of Ginza, Japan, where you can see a view similar to this one."

"No need for that. I'm in Tokyo and it's the same if I stay in a hotel." Yang Wendong refused with a smile.

If you get benefits, you will have to pay a price. The wool comes from the sheep, and this truth is eternal.

Besides, it would be easy for him to buy a mere Ginza apartment. The Japanese real estate market has not taken off yet. Although the housing prices are more expensive than those in Hong Kong, they are not too outrageous. Even if he wants to invest here in the future, that is a matter for the future.

"That's fine. We have many high-end hotels in Japan." Takizawa Ichiro was not surprised to see that Yang Wendong did not agree, so he said, "Mr. Yang, how about we formally start the meeting?"

"Okay." Yang Wendong nodded.
Soon the meeting officially began. Like last time, Mitsui Shipbuilding Co., Ltd. first introduced the company's achievements in recent years, and then introduced several previous ship models.

However, since the cargo ship purchased by Changxing Shipping this time was similar to the last time, and it was also for the convenience of operation, there was not much to discuss, and the price negotiation stage soon began.

"This price is almost 10% more expensive than last year?" Yang Wendong asked without changing his expression after seeing the quotation.

Ichiro Takizawa said with a smile: "Mr. Yang, the price increase is also due to the global market demand and the increase in raw materials. You can also ask Ms. Zheng about this, or consult other shipbuilding companies."

Yang Wendong glanced at Zheng Yuhua, and after receiving a positive reply, he said, "Since it is caused by international reasons, let's not discuss it for now. In terms of financial cooperation, I still hope to be able to do better than the last round of cooperation."

Throughout the 60s, ship prices have been rising, because shipyards are not fools, so many ship owners rely on ships to make money, the market will naturally push up the price of buying ships, and after the outbreak of the Middle East crisis, the price of ships will double. Even if you buy an oil tanker now, you will get your money back after a few years of operation. After the outbreak of the Middle East crisis, a second-hand oil tanker can still be sold for two or three times the original price of a new ship.
This is a crazy era and also the best era for accumulating wealth. Not to mention that Yang Wendong knows the history, many shipping tycoons do not know it and are also desperately trying to squeeze in, which has also led to the rise in ship prices.

"Financial cooperation?" Takizawa Ichiro paused and said, "Mr. Yang, our previous cooperation with your company, Mitsui Bank, has provided 65% of the loan, which is already a high amount."

"It was very high before, but it's just average now." Yang Wendong smiled and said, "The increase in ship prices is due to the rapid growth of the shipping market, which means that the risk in this industry is low. So the Bank of Japan can naturally give more credit."

To do such a big business, if you are sure that you can make money in the future, you must use the bank's funds to the fullest. The higher the loan ratio, the better, because a few more percentage points from the bank can save investors tens of percent of their investment. If you are bolder and use more leverage, you can buy more ships or real estate, etc.
Takizawa Ichiro smiled and said, "Mr. Yang's analysis is correct, but it is difficult for me to make a decision immediately. We also need to consider this matter from the perspective of the entire cooperation."

"Of course, I am just making my request." Yang Wendong nodded and said, "But if your bank can meet my requirements, I can also order one or two more small cargo ships."

"What freighter?" asked Ichiro Takizawa.

Yang Wendong smiled and said: "Container ships, this is the development direction of the new era."

As time entered the mid-60s, containers became more and more popular, and some of Changxing Shipping's customers began to seek container ship leasing, which was also an opportunity for Changxing Shipping.

"Then we'll negotiate again later." Ichiro Takizawa's eyes lit up and he said with a smile.

The negotiation process was similar to the last time, which is why it is easier to cooperate after many collaborations and sufficient understanding of each other.

最终到了下午，双方定下此次交易涉及2艘排水量12.5万吨油轮、3艘5.6万吨油轮、以及2艘集装箱货轮，总吨位46.2万吨。

Subsequently, the two parties will discuss price, bank loan amount, interest, delivery time, etc.

A week later, the two sides finally reached an agreement. The total amount of the transaction was US$4680 million, and the Japanese bank would lend 68% of the loan.

As soon as the news came out, some Japanese media reported it immediately. In Hong Kong, the Hong Kong Chinese Daily and the Oriental Daily News were even closer to the news and broke the news immediately: [The King of Post-it Notes Buys Another Giant Ship: Hong Kong Chinese Shipping King is about to change! ]

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(End of this chapter)