Chapter 515 Preliminary Planning of the Textile Industry

In the 21st century, the traditional home appliance industry is called a sunset industry because of the impact of new electronic industries such as computers, mobile phones, and tablets; but in this era, it is a well-deserved industrial crown, and it can even be said to be one of the economic lifelines of a country. In terms of total scale and influence, it is second only to automobiles.

No country would say that it looks down on the home appliance industry. Life is also dependent on home appliances, which have driven employment for millions of people. For a long time, Sony, Nikon, Panasonic, Toshiba, Hitachi, etc. were the world's top brands.
After learning about Honor Electronics' idea, the Hong Kong government immediately became interested. They adopted a "free market" policy just because they were lazy, but they were not stupid. If Hong Kong became a large-scale home appliance production center, the benefits of taxation and land appreciation would all belong to the Hong Kong government.

The two sides soon became interested and negotiated on the planning of the North Point Industrial Park, intending to relocate most of the plastic and textile enterprises in the entire North Point Industrial Park and then use it exclusively for the production of home appliances;
Given the housing prices and economic conditions in Hong Kong Island, this kind of low-end industry is indeed not suitable to stay here, and it is perfect to leave it to the home appliance industry. After all, even Japan and the United States are home to the home appliance industry, and the profits of this industry can afford the wages of developed countries. This is nothing for Hong Kong Island.
However, after all, there are too many factories involved and it is impossible to force them to relocate, so we can only do it step by step. Moreover, this matter is currently top secret. Once it is announced, I don’t know how much capital will be involved in hoarding land. Even a bunch of plastic factory owners will probably have to happily open champagne to celebrate.

The development of the electronics industry will also drive Hong Kong's industry to take off again. This was the case in history. After the 70s, Hong Kong's industry developed faster than in the 60s, becoming a production base with a little fame in the world. It did not start to decline until 85.
However, behind the rapid growth of performance, there are many hidden dangers. One is that the rise of economies in Asia, such as Taiwan, South Korea, Malaysia, Singapore, the Philippines, and Thailand, has taken away many industries from Hong Kong. Only because of the explosion of global trade and the development of the electronics industry, Hong Kong's industry is still progressing rapidly, but its share is gradually declining.

But this is normal. After all, Hong Kong is just a city, and it is enough to take up a small part. Yang Wendong’s current goal is to let the electronics industry gradually take root in Hong Kong. Even if it has to go to the mainland in a dozen years, at least during this period of time, it can bring enough wealth to Hong Kong.

The only industry that has truly been left for Hong Kong is Watsons. Some of the company's industries can remain in Hong Kong permanently. Of course, with Hong Kong's housing prices being so high in the future, it will be impossible to stay in Hong Kong Island.

In mid-September, when Honor Electronics was negotiating with the Hong Kong government on matters concerning the North Point home appliance industrial zone, Yang Wendong came to Sha Tin Town.

"I feel like there's a huge difference between here and when I came here a few years ago." Su Yiyi said after looking around.

Zhou Haoran, who was standing behind him, said, “Yes, Mrs. Yang, a few years ago, Shatin was basically very sparsely populated, with only a few locals living here, but after we came here, several factories created jobs for more than 8000 people, and their families also came here;

Their family consumption has also boosted the surrounding economy, real estate, hotels, restaurants and even cinemas. Now, Shatin has nearly 100,000 people.”

Yang Wendong also said: "It can be said that half of this Shatin Town was built because of our Changxing Group. Watsons has developed too fast in recent years."

Watsons has many businesses, and its current core industries are PepsiCo's OEM, instant noodles, and sausages. These three industries are extremely busy nowadays. The former relies on PepsiCo's channels, and the latter is simply the best food in Asia in this era, just like the mainland in the 90s in the previous life.

Zhou Haoran smiled and said, "Yes, it is thanks to Mr. Yang's guidance that I have achieved this result today."

"Okay, stop bragging." Yang Wendong smiled and asked, "How is the production capacity of masks?"

Zhou Haoran replied: "Compared to the previous two months, my production capacity has expanded tenfold, and a large number of masks have begun to be exported. The flu is very serious throughout Asia now, and I heard that it has also started in the United States. We are currently seeking to apply to export to the United States, but this will take some time to obtain qualification certification in Europe and the United States."

"Looking at the current trend, Hong Kong has passed this stage and will focus on exports in the future." Yang Wendong added, "But we don't know if this flu wave will come and go like the Spanish flu, so even though medical masks are more popular now, you have to gradually try to make industrial masks to avoid the entire industry collapsing immediately after the flu pandemic ends."

In fact, this kind of light industry basically does not require any large equipment investment, and even if it collapses, it can still make a lot of money in the first one or two years of popularity;

However, for Changxing Group, short-term quick money is of little significance unless it is really enough. Taking advantage of such an opportunity, lowering the price of the industrial chain and obtaining channels are the top priorities, so that a large, long-term and stable industry can be formed in the future.

"Okay." Zhou Haoran agreed: "During this period, basically many factories that originally produced industrial masks are now producing medical masks. If we produce industrial masks at the same time, we can indeed seize the market."

Yang Wendong said: "Okay, we also need to expand the scale of industrial masks. If the factory is not enough, we can just buy land in Shatin and continue to build factories. If multi-story buildings are slow, we can just build one-story buildings and buy more land."

The construction speed of multi-storey industrial buildings is definitely not as fast as that of single-storey ones, but many people will build high-rise buildings because of the land price;
But for Yang Wendong, who knows the future, it is a good opportunity to stock up land, and it can also quickly increase the production capacity of his industrial products, killing two birds with one stone. "I understand. I have already bought some land and I am ready to expand," Zhou Haoran paused and said, "Mr. Yang, if we want to increase the production capacity of masks on a large scale, there is another problem. There is a shortage of cotton on the market now."

"Shortage of cotton? The small amount of masks we have shouldn't have much of an impact, right?" Yang Wendong asked back.

The main component of the N95 mask in the past was meltblown cloth. When Yang Wendong decided to make masks a few months ago, he also investigated the specific situation of this material, but he did not find it. Maybe it has not been invented yet, or it may have been invented but has not yet reached the Chinese area, that is, the English name has not been translated into Chinese, so naturally it cannot be found;

Masks of this era are mainly made of non-woven fabrics and cotton. They are not as effective as meltblown fabrics, but they are definitely better than nothing.

Zhou Haoran said: "This has nothing to do with us. It's mainly because Hong Kong's textile industry is developing too fast, and the imports from the mainland have decreased, so this will cause our procurement costs to increase a lot."

"Can we use non-woven fabric to replace part of it?" Yang Wendong asked again.

Zhou Haoran replied: "Yes, we are currently operating in this direction, but after the cotton shortage, the price of non-woven fabrics has also increased a bit."

"You don't want to make non-woven fabric yourself, do you?" Yang Wendong asked in surprise.

Zhou Haoran smiled and said, "If it's just my side, it wouldn't be necessary, but Mrs. Yang's chain clothing stores and factories are getting bigger and bigger, and she's even planning to expand to Taiwan, Singapore, and Malaysia, so why not consider building a spinning mill yourself."

"You are quite good at picking the time." Yang Wendong smiled. Su Yiyi happened to come today.

After the beginning of 68, Changxing Real Estate had a large number of street-side shops, so they naturally gave priority to their sister companies. As the first lady, Su Yiyi naturally had a higher priority;

In half a year, Yiranzhijia successfully opened more than 300 stores in every corner of Hong Kong, many of which were in prime locations and large in size. In addition, with the promotion of TVB, Oriental Daily News, and cinema advertisements, the business was very good, and the annual output value was easily tens of millions.

With an output value of tens of millions, the Hong Kong factory is also a very large garment factory, not to mention that Yang Wendong's capital is still expanding to Singapore and Taiwan. However, these two places adopt the franchise model, and the clothes are still shipped from Hong Kong;
It is only natural for such a large factory to have its own spinning mill.

Su Yiyi also became interested and said, "How about we build one ourselves?"

"There's no rush for now." Yang Wendong shook his head and said, "There are factories like this everywhere, and the procurement is the same. If we want to build one, we have to build something different, otherwise there's no point."

"How is it different?" Su Yiyi was a little confused.

Yang Wendong said: "Wait a little longer, I might invest in an overseas textile giant, and then talk to their management to introduce their technology to Hong Kong to make high-end textiles, which would be more appropriate."

His target is naturally Berkshire Hathaway, the textile giant that followed Buffett, whose future stock growth will surpass any non-Internet company.
However, since you have invested and may even become a major shareholder, you should naturally make full use of the resources of the existing company. You know, Buffett also tried to save Berkshire's textile industry in the 70s, until he gave up because he was unable to do so.
If I participate in it, move the factory to Hong Kong, and then to the mainland, it will be like killing two birds with one stone, and all parties will be satisfied: I can get an industry, a large area of land in Hong Kong, Buffett can save the textile industry, Hong Kong will get tax revenue, and the mainland will get a large number of jobs and foreign exchange in the future.
"Okay." Su Yiyi didn't ask any more questions, and Zhou Haoran naturally didn't say much.

Yang Wendong asked again: "How is the testing of Red Bull beverage going in the United States?"

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

previouscatalognext