Chapter 428 The Beginning of the Oil Industry Chain

Chapter 428 The Beginning of the Oil Industry Chain

Chapter 428 The Beginning of the Oil Industry Chain

"Thank you Mr. Yang for your support." Zhou Haoran was overjoyed and said gratefully.

Yang Wendong smiled and said, "You're welcome. The development of our group will not be entirely dependent on my decisions in the future. You can put forward any ideas you have as long as they are reasonable and legal. I will basically let you give them a try."

The best development model for large enterprises is for the headquarters to control several core businesses and resources, and then subordinates decide what to do based on their imagination and market insight. They can do a small test themselves first. If they succeed, they can get support from the group's resources. If they fail, it doesn't matter. Failure itself is the mother of success.

As the boss, Yang Wendong only needs to know about this matter, and when the scale really becomes the pillar of the group, he can take it seriously.

Otherwise, if the group relies on itself, its future innovation capabilities will be wasted. After all, even if it is a time traveler, the development directions it knows are limited. Even if it knows, many industries require the cooperation of various resources to develop.

Zhou Haoran continued, "Then I will do a detailed investigation here and give you the report after it comes out."

"Well, okay, let's test the waters first." Yang Wendong smiled and said, "The medical device industry has a very large market. If we can do it well, it can also become a core industry of Watsons in the future."

In the context of the difficulty of drugstore expansion, developing the medical device industry is indeed a good method. It is not impossible to participate in the pharmaceutical industry when there is sufficient funds in the future. However, the technical content of this field is too high and the difficulty is too great.

But since I have traveled through time and have enough money, maybe I can give it a try. You know, in the past life, after the 2020s, the mainland had strong images in various fields such as automobiles, aircraft, and electronics, but the pharmaceutical field was still at a great disadvantage.
"I understand." Zhou Haoran agreed.

If they just want to make gauze, band-aids, etc., any factory can do it. Yang Wendong is not worried about the production at all. It all depends on how his team can develop the market.

In fact, it is good to try this. Although Changxing Group has developed rapidly before, it has relied on innovation or capital to expand, but has not relied on the marketing department. Now is the time to test the ability of my team in this regard. If any shortcomings are found, it is better to make up for them. After all, there will be more and more non-innovative products in the future.
The next day, Saturday the 26th, Yang Wendong arrived at a large island in Hong Kong.

Looking into the distance, Yang Wendong said with a smile: "This Qingyi Island really has beautiful scenery."

"The scenery is quite nice." Wei Zetao said nearby: "There are too many people in Central nowadays, and many real estate companies have come here to develop residential communities."

"Isn't Tsing Yi Island a place where the Hong Kong government plans to invest in heavy industry?" Yang Wendong asked in return.

Wei Zetao said: "Yes, but some of Hong Kong's heavy industries do not cause very much pollution, and ordinary people also need to live near places where there are jobs. Similarly, many companies investing in Tsing Yi Island also need workers around them.

Plus, their salaries were not low, so they had demands for housing and consumption, and then the economy gradually developed.”

"That's true. Sometimes, industry is more important than the environment." Yang Wendong nodded.

Wherever there is industry, there is pollution, but the problem is that people need to work, to support themselves and their families. When such basic needs cannot be met, environmental protection is bullshit. As long as the pollution is not extreme, appropriate pollution in exchange for economic development is definitely worth it.

There are no factories in many places, and farming may not be enough to feed the family. Without industry, there will be no transportation, and there may not even be electricity. In the past, there were a bunch of white left saints in Europe who wanted environmental protection instead of industry, and even power plants.
Wei Zetao then introduced, "Mr. Yang, over there is the oil depot of Mobil Oil in Hong Kong. Over there is the future new power plant of China Light and Power. In this direction is a dock built by the Jardine Matheson Group."

When passing some places in the car, Wei Zetao introduced them, and after a while, they arrived at the destination.

After getting off the car, Yang Wendong said, "Our factory is not that big."

The purpose of coming to Tsing Yi Island this time was to see the plastic particle manufacturing factory that he had built in Hong Kong.

Wei Zetao smiled and said, "Mr. Yang, our factory is small, and it is used for testing the waters so that our people can understand the basic situation of this industry."

"Yeah," Yang Wendong nodded and said, "Then let's go in and take a look."

Wei Zetao smiled and said, "Okay, but we'll need to take some safety measures later."

"No problem." Yang Wendong agreed. He would never refuse such things. After all, the relationship was safe.

Everyone quickly entered the factory and took a tour. When they reached the end, they saw a large amount of black plastic particles piled up after coming out of the production line. Then a dozen young men were constantly filling them into plastic bags.

Yang Wendong asked: "How about the cost?"

Wei Zetao paused and said, "The cost of our plastic pellets is about 1.4 times that of the ones imported from Formosa Plastics. If we expand our scale in the future, we may be able to reduce it a little, but it will be difficult to achieve the same level as Formosa Plastics.
The main reason is that Hong Kong does not have any industrial chain, and we cannot build one. Without government support, it is difficult to do this unless we invest a lot, but it is not cost-effective.”

"Well, it seems that it is indeed difficult to engage in oil derivatives in Hong Kong." Yang Wendong smiled and said, "But it doesn't matter. Even if we invest abroad in the future, we need to have professional talents in this field in Hong Kong. Otherwise, it is easy to be cheated by outsiders in this high-tech field."

Changxing Group now has branch factories in Taiwan and the UK, and will expand into Singapore or other places in the future. However, there are basically no problems with these industries because Hong Kong has already played them through and is clear about all the problems. In addition, the industries are simple, so overseas factories can't do anything wrong.

But petrochemicals are different. If you don’t know anything about this, you will most likely be cheated if you invest heavily overseas. This is also why national multinational companies don’t dare to open factories overseas at will.
If a government department says you are not environmentally friendly, you have to know a lot of things to have a chance to refute it, so you also need to know something. Otherwise, with only one headquarters in Hong Kong and other industries overseas, the risk is too great. Wei Zetao also said: "Yes, this factory may not make a lot of money, but at least it can provide us with a lot of experience, which will make it much easier to negotiate with foreign countries in the future;

And if there is a shortage of plastic raw materials one day, our own factory can quickly replenish some, which is much better than having nothing at all.”

"Yes, if the plastic particles are gone, Changxing Industry will suffer heavy losses." Yang Wendong also agreed.

The price of raw materials normally depends on the market, but in special cases, it depends on how valuable the products made from them are.

In the next ten years or so, the international oil market will fluctuate greatly. It will be better to have a base in Hong Kong. Although plastic particles also have raw materials, the factory itself will also be a storage warehouse to avoid some extreme problems.

"Yes, with our own factory, we can use it as a large warehouse even if it doesn't make money." Wei Zetao said: "After we train talents, we can let them open factories overseas, which will be more convenient for us to manage."

"Overseas factories can actually be managed by local people, but we must also have our people," Yang Wendong nodded.

In fact, one's own people may not necessarily be trusted absolutely, but as a boss, he does not need to trust a certain person, but rather give opposing rights or interests to different groups; then for their own future, they will not unite. Only in this way can he sit firmly on the throne, just like the ancient emperors, allowing numerous factions within the court.

Wei Zetao asked again: "Mr. Yang, is our next step to invest in Taiwan? The supporting facilities there are quite good, and Formosa Plastics has almost prepared the industrial chain in recent years."

"There's no rush for now. We have to give Wang Yongqing some face." Yang Wendong shook his head and said, "Besides, the supporting facilities in Taiwan are all controlled by Wang Yongqing. We are playing small games now, and he doesn't care. But if we make a big investment, even if we don't have a quarrel on the surface, we don't know what will happen in private.

My ideal investment location is actually Singapore, which is close to Malaysia, and Malaysia also has more complete supporting facilities than Taiwan, even oil fields. It’s just that the political situation there is not completely stable yet, but it should be soon.”

In fact, there is another reason, which is the ZZ reason. The supermarkets and cinemas that he invested in Taiwan are all small assets. Even if he invests in real estate in the future, it will be very easy to cash out. Even the light-asset factory of Changxing Industrial is actually just a OEM base.

But this kind of heavy industrial assets is different. Once invested, it is strictly tied to the local area. So in order to avoid trouble, it is better not to bother. It is enough to invest in Formosa Plastics through financial means.

Singapore is much better. At least it will not have any political risks in the next 60 years and its location is very good.

"Okay, I understand." Wei Zetao also said with a smile: "When the production scale of plastic particles over there is large, many of our factories can also be opened there."

The tone has already been set within the group. The group now has enough factories in Hong Kong, which have created more than 1 jobs, accounting for nearly % of Hong Kong. This proportion is enough. If there are more, it will not make much sense. There is actually not much difference between controlling many people and employing too many people in one place, and many people in Hong Kong today are not short of jobs.

It would be better to invest overseas. After all, there are Chinese people in Singapore or Taiwan, and it can increase the influence of the group overseas. Singapore, in particular, will be the group's key investment area in the future because it can become the starting point for the layout of the group's multiple industries in Southeast Asia.

Yang Wendong also said: "Yes, the simple plastic manufacturing industry requires too much manpower. Hong Kong cannot meet our needs. How is the global market for our newly launched storage boxes?"

When many products are popular all over the world, and these are all labor-intensive industries, the population of Hong Kong really cannot bear so many jobs, after all, there are many other industries; if they force themselves to stay in Hong Kong, the siphon effect will be bad for other small industries.

Wei Zetao said with a smile: "It's selling very well. The storage box is so convenient. Last month, we exported more than 200 million pieces. It's also convenient to transport by sea, and the cost is not high. It's really perfect."

"Well, then we will continue to expand our production capacity." Yang Wendong added, "We can also send people to Singapore to investigate the specific conditions there and see where we can invest. Once the situation there stabilizes, we can invest there."

Singapore was founded in August 65. Yang Wendong believed that this kind of thing would not be affected by his own butterfly effect. It is only a little over half a year away from now, and a large investment requires at least several months to a year of preliminary preparation. It is almost time to start taking action now.

"Okay, I'll send someone to Singapore to investigate." Wei Zetao agreed.

Yang Wendong added: "Also, we should pay attention to the oil production situation in Malaysia so that we can know what to do in the future.

We can also recruit people from the Malaysian industry chain, especially the Chinese community, which will facilitate our future operations.”

In high-tech industries, the most important thing is talent. Without talent, no matter how rich you are, it is all in vain. For example, in some Middle Eastern countries in the past, there was more oil than water underground, but over the years, no other industrial industries were developed.

Wei Zetao said: "I understand."

Yang Wendong nodded and said, "Then we don't need to expand the scale here in the future. We can just train our own internal talents. In addition, like the Mobil oil depot, we can build a large naphtha or other raw material warehouse as a backup. This will be Changxing Industrial's emergency warehouse in Hong Kong in the future."

"Okay, no problem." Wei Zetao said.

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