Chapter 683 Preparation for the Oil Crisis

Chapter 683 Preparation for the Oil Crisis

Chapter 683 Preparation for the Oil Crisis

After Guo Henian left, Yang Wendong stood on the balcony of the Four Seasons Hotel, looking towards the distant north;
Although he could not see the mainland, he was thinking in his heart that in the next few years, before the mainland's reform and opening up, he might be able to do something. This would not only benefit his own business, but also provide some help to the mainland. And most importantly, after establishing good relations, there would be more investment opportunities in the future reform and opening up.

But after thinking for a while, I still have no idea. In fact, the mainland has a demand for many things, but this kind of thing can only be done by people from the mainland, not by myself, which may have a counterproductive effect.
Since there is no other way, then don't think too much about it, just wait. If there is an opportunity, then cooperate, if not, then forget it. Anyway, in the 70s, the most important market is still the foreign market, and the main time opportunities in China are still in the 80s. Now it is just to lay a foundation early.

Soon it was the end of March. Yang Wendong also learned from the phone that Guo Henian's plan was going smoothly and he started to buy sugar in batches. So he also sent his own fleet to cooperate. His own people always have a higher degree of trust.
On the 27th, Yang Wendong came to the industrial park of Changxing Industry in Kwun Tong. At this moment, a new large factory was under construction;

When the industrial park was being planned, Changxing Industrial had already stockpiled some extra land to facilitate future expansion. Fortunately, the real estate industry in Kwun Tong was not well developed at that time, and there were too many unemployed people. The conditions offered by Changxing Group were good enough to make the Hong Kong government relent and give more land.
Looking back now, with the development of Kwun Tong's economy, this large piece of land alone is a huge fortune; however, in the short term, this land will continue to be used for industrial purposes until Hong Kong's real estate booms and the reform and opening up of the mainland nearby has achieved some results, then we can leave. During that time, if we convert this piece of land from industrial to commercial, we will definitely get huge profits;
"Has the US FDA approved our plastic bottle materials?" Yang Wendong asked.

Wei Zetao beside him replied: "Not yet, but according to PepsiCo, it will be soon. As long as it is approved by the FDA, it will be much easier to pass the review of Asian countries and regions."

Many countries in Asia do not actually have their own inspection agencies. Many of them just follow the approval of the United States or other developed countries to determine import standards, or do a little testing. In some places, there is not even a basic review. As long as you pay taxes legally or give some bribes, everything will be fine.

Yang Wendong nodded and said, "Well, okay. Regardless of whether some countries' audits are strict or not, we have to be strict ourselves. When it comes to food, if there is a problem in one place, other places will also be affected."

Although the Asian market is very chaotic and our products can enter easily, our goal is to build a global brand, and we absolutely cannot allow mistakes to occur anywhere. If food poisoning occurs in Asia, the same brand in the European and American markets will inevitably be affected.
Large-scale food production naturally requires caution, and following procedures is also a must. In many cases, strict government control is also a good thing for big brands. Even if a problem does occur, the process must be followed correctly, so that the responsibility will be less and the entire team of employees will pay attention to quality, rather than taking extreme measures for the sake of profit.

Wei Zetao smiled and said, "Yes, I understand. Judging from the time, once the FDA review is passed, my PET production plant will be completed. By then, we can not only supply Watsons, but also export to the United States or other countries. Pepsi has agreed to purchase our raw materials, and the price is still under negotiation."

"Okay, you don't have to ask for an exorbitant price. I hope for long-term cooperation." Yang Wendong said.

It is obviously impossible to monopolize this industry, so the most important thing is to hold on to big customers for a long time. These industries focus on scale and volume, rather than making huge profits.
If you want to make huge profits, you must have a foundation, such as future electronic products, entertainment brands, etc. These are protected by patents and copyrights, so it is possible to do this stably.

Wei Zetao agreed: "Okay, I understand."

The new factory had not been built yet, so naturally there was nothing to see. Then the two of them walked around the entire factory again. Yang Wendong suddenly asked, "Old Wei, how long has our factory been open?"

Wei Zetao recalled, "The planning of our industrial park was in early 1961. I remember that the entire project was large in scale and was divided into several phases. At the beginning, we were building and producing at the same time. If we count from that year, it has been 12 years now."

"It's been 12 years, but it feels like the blink of an eye. Time is passing faster and faster." Yang Wendong said with some emotion.

He actually had this feeling in his previous life. When he was a child, he always felt that time passed very slowly and hoped to grow up quickly. But when he grew up, he found that time passed really quickly. A few years were gone in the blink of an eye, and in the blink of an eye again, he was already middle-aged.

Fortunately, I traveled through time and returned to my youthful state, but the same thing happened with time. The years were a bit ruthless.

Wei Zetao smiled and said, "Mr. Yang, you are only in your early thirties, which is the youngest time of your life. Your career has been so successful. It can be regarded as a miracle in the history of human business."

"Haha, thank you very much for that." Yang Wendong smiled and then said, "In addition to the plastic bottle issue, there is another thing I need to discuss with you."

"Please speak, Mr. Yang." Wei Zetao also immediately became serious.

Yang Wendong said: "Don't worry, let's go back to the office and talk about it."

After the two returned to the office, Yang Wendong asked, "What is our current reserve of plastic raw materials?"

"Plastic particles?" Wei Zetao thought for a moment and said, "Our reserves are usually about half a month long, not only for what we need, but also for other companies in Hong Kong.

The amount of reserves is not large, because Taiwan has sufficient production capacity. The current Formosa Plastics Group is very large in plastic production and is already ranked among the top in Asia. "

In the early years, the British-owned trading companies in Hong Kong monopolized the plastic import market. When Changxing Industry became larger, these trading companies did not think about expanding imports, but instead thought about raising prices and sucking blood from Changxing Industry and other Hong Kong plastic production factories.

Changxing Industry was already a small company at that time, so it would not indulge them. It immediately established its own trading company to import plastic particles. This was the beginning of Changxing Trade.
However, there was no large production capacity near Asia at that time, so the only way was to import from Europe and the United States. Even with Changxing Shipping, it was not possible to be completely dependent on it. The cost of importing from the United States was still too high. So the boss selectively supported the surrounding plastic manufacturers and finally chose Taiwan's Formosa Plastics Group.

Yang Wendong's vision was indeed amazing. After investing in Formosa Plastics Group, Formosa Plastics Group developed into one of the largest plastic manufacturers in Asia in just over ten years. Changxing Industrial, Honor Electronics and other Hong Kong plastic manufacturers also had a stable source of plastic raw materials. The investment of Changxing Group was rewarded more than a hundred times.

Over the years, Changxing Industry has also been involved in the production of some plastic raw materials, but the scale is not large. It mainly imports from Formosa Plastics. The relationship between the two parties is also very good, so there is not much stock of raw materials, because they can be purchased at any time when there is demand. There are even special ships and small docks for transportation between Taiwan and Hong Kong. Yang Wendong nodded and said, "Well, I understand, but I hope you can stock up more plastic particles in the future. The more the better."

The oil crisis will come in half a year. Oil or other oil products are difficult to store. The cost of storage equipment is extremely high. Yang Wendong's business does not have the management ability, so the risk is relatively high.

But plastic is also a petroleum derivative and a necessity for modern industry and people's livelihood. When the price of oil soars, its demand remains unchanged, so the price will naturally rise sharply. In addition, the group itself needs a large amount of plastic raw materials. Once there is no plastic, all production will be ruined, and even Honor Electronics will be affected.

Therefore, it is not really important to make a fortune by hoarding plastic. There are other ways to make money by taking advantage of the oil crisis, but the priority is to ensure that there are no problems in your own industry. Even if your own supply is normal and other peers cannot supply, it will be a huge advantage.

"Hoarding? Why?" Wei Zetao asked puzzledly.

Yang Wendong naturally couldn't explain, so he said: "I have some gossip. In the next period of time, oil prices may rise sharply, and the Middle East may negotiate prices with Europe and the United States;

Once the oil price goes up, the price of plastic will inevitably go up as well. We have a lot of warehouses in Hong Kong, but they are now empty. It is not expensive to stockpile plastic, so we can do more.”

In fact, no one knew that an oil crisis would break out during this era, but some people did know about the game of oil prices;
The Middle East is the world's largest oil production base, accounting for 36% of the world's total production capacity. This number is already terrible, but there is another number that is even more extreme, that is, the proportion of exports;
You know, many countries have high oil production capacity, such as the United States, but they also have a lot of demand internally, and it is still not enough. The Middle East has basically no demand internally. In addition, the economy has not developed in this era, and there is not much demand for refined oil. At the same time, the oil in the Middle East is of good quality and has low extraction costs. Therefore, the oil trading volume in the Middle East accounted for 70% of the world at its peak.

Most countries in the world do not have the ability to process oil, so the oil in the Middle East is mainly bought by oil companies under several developed countries and then processed. These giants, led by the Seven Sisters of Oil, make huge profits from it, but the Middle East is left with only a few melons and two dates. The entire Middle East is terribly poor;
In the early years, the US military was powerful and intimidated the Middle East. However, as the US did not fight well in several tough wars, the Middle East naturally wanted to fight for its own interests. However, they were unwilling to really take action unless they had to. After all, these people themselves were also very weak.

Therefore, price negotiations with the Seven Sisters of Oil have been ongoing. It took more than ten years to increase the price from US$1.5 a barrel in the early years to US$3 a barrel. The conflict that began in 67 has also kept the negotiations ongoing. Therefore, the outside world is also partially prepared for a moderate increase in oil prices.

"Okay, I understand. I will increase my orders to Formosa Plastics right now." Wei Zetao also knew some of the situations in the Middle East;
But he didn't understand. According to past experience, even if the price of oil rises, it usually doesn't increase by a few cents. Although it will increase the cost a little, hoarding too much plastic is also a troublesome thing, which also requires a certain cost.
But since the boss had made the decision, he didn't ask any more questions. After all, plastic was not food, so it wouldn't go bad. It would be fine if it was exposed to rain. As long as it didn't cause a fire, even if humans were destroyed, these things could still last for tens of thousands of years.

"Okay, let's keep everything else the same." Yang Wendong nodded and said, "We should manage the papermaking, container, and plastic industries well. Once they are expanded, they will be of considerable size."

Changxing Industrial's current business can be said to be stable, which means it is difficult to make new progress. After all, his prophet's golden finger is of limited help to this industry, and there are not so many small innovations;

However, the early capital accumulation has been successful. Changxing Industry has successfully established itself in the papermaking, container production and plastic industries. In the future, it only needs to expand its scale by leveraging various markets. These three industries will be enough to make it a Fortune 500 company.

Especially after the reform and opening up of the mainland, there is not only a large market, but also a large production base, and it can also develop again with the help of the mainland's "demographic dividend".

After leaving Changxing Industrial, Yang Wendong returned to Kangle Building. His new office was much bigger than the previous one, and the scenery was also good, which he liked very much.

In life, if you have enough money, it is natural for you to pursue making yourself more comfortable and happy.

After a while, the assistant brought Fang Xianming to the office and said, "Mr. Yang, Mr. Fang is here."

"Come, sit down." Yang Wendong greeted with a smile.

Fang Xianming quickly said, "Thank you, Mr. Yang."

Yang Wendong said bluntly: "Lao Fang, we still have a lot of funds overseas, right?"

"Yes, there are some. Although there are more investments from the United States, they are mainly from the credit lines of different banks. We still have a lot of funds on our own." Fang Xianming explained: "But for investment considerations, I also invested in some low-risk, long-term and stable projects."

"Well, okay." Yang Wendong nodded and said, "Then I need you to raise funds to buy some stocks of oil field companies."

The Middle East is a major exporter, but there are also many in other places, but many of them are to meet domestic demand;

But when the oil crisis hit, the prices of these oil fields naturally rose;

As a time traveler, there is no way to hoard oil, but it is still easy to buy some stocks.

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