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Chapter 350 Ambition (seeking the moon)

It's "then, why can't it be the Republican Annexation Wynn!"

When the voice fell, Mu Xiang did not have any ridicule on his face, but he smiled kindly at Fan Xudong...

"because……"

After pondering for a moment, Fan Xudong spoke.

"I am confident that I will turn the merged Republic Chemical into a huge chemical industry empire."

At this time, Fan Xudong had already understood that if you want to convince the company to accept its suggestions, you must start from what they are interested in. For the company, what they are most interested in is undoubtedly money for ordinary businessmen, but for the company, money is not necessarily the most important.

If money is the most important to the company, in the past two years, they will not provide technology to companies after company, provide loans, or even provide technology to companies that are directly competing with them. When transferring technology, the requirements they put forward in addition to proper equity are very simple - to provide certain workers' welfare guarantees.

Fan Xudong also talked to some friends of the company. The chairman always wanted to build a company that could work with dignity. Therefore, he implemented a pupil training plan in the company. Every worker received insurance and pension. They could apply for affordable housing developed by the company. Women also enjoy maternity leave and special baby housing. The company formulated employment conditions that were far more generous than ordinary railway companies.

Companies are not just companies. To a certain extent, at least in Longhai, they also regard themselves as "government" while acting as public service providers. Perhaps this is why they will improve social welfare and try every means to induce Longhai enterprises to increase workers' welfare. Social welfare greatly increases labor prices, forcing factories to demand productivity from emerging technologies.

The company has his "big ambitions".

"The Chemical Industry Empire!"

The brows jumped slightly, and Mu Xiang became interested in Fan Xudong's statement.

"Manager Mu, look, these are some reports I prepared and accidentally discovered this. Six months ago, Republican dye began to export nitric acid, smokeless powder, nt**, phenol and picric acid to the United Kingdom, France, and Russia. According to the quotation of Republican dye, our prices have certain advantages compared with British and French companies, but I don't know why, but until now, we have not been able to block the sales of chemical products from foreign companies in our country and Asia. What I know now is: If we do not take advantage of the current opportunity and do our best to block the sales of chemical industrial products from European countries in Asia and even the Americas, then we must consider a more costly commercial competition after the war is over!"

“Carry a more costly business competition!”

Mu Xiang frowned slightly, and Fan Xudong's words were repeated.

"Yes, now, because the demand for chemical industrial products in European warring countries has surged, so that chemical companies in various countries can produce at full capacity, and cannot meet their demand. Under this contradiction of supply and demand, the prices of chemical industrial products are showing a surge, and corporate profits have surged accordingly. Take phenol produced by Republic dyes as an example. In half a year, the price has surged by 5 times, and the company's profits have increased by nearly seven times. Faced with such huge profits, chemical companies in various countries have expanded their production capacity, and at the same time, a large number of companies have switched to chemical production to meet market demand. However, once the war is over, it will inevitably lead to overcapacity. Chemical powers such as Yingde will inevitably dump with our chemical companies at low prices. At that time, if our chemical companies cannot seize the current situation and strive to seize the market share of Asia and America, then, the British and German chemical companies we are facing can monopolize the European and American markets and dump at low prices and suppress my country's chemical industry!"

Fan Xudong's words surprised Mu Xiang. In his impression, Fan Xudong was not an expert in business, but he pointed out this point now. However, the company had already had a solution to post-war dumping, that is, tariff protection.

Seeing that Mu Xiang was still thinking, Fan Xudong immediately added.

"Indeed, Manager Mu, according to the speech of the Strategic Initiative in Wuchang, if the Strategic Initiative serves as the Prime Minister, he can indeed implement tariff protection for the newly emerging industries in our country, including the chemical industry, after the war, but..."

After a slight pause, Fan Xudong put it back on the topic.//

"Unless we are willing to only grasp the Chinese market, we must consider the competition between British and German companies."

At this time, Fan Xudong no longer mentioned the chemical industry, but mentioned the competition in the entire enterprise industry.

After he said this, Mu Xiang realized that tariff protection only protects the domestic market. According to the strategy of "exchange industrial products for foreign exchange" formulated by Zhiyuan, China's industrial products must be exported. Only in this way can it be exchanged for huge amounts of foreign exchange to accelerate the industrialization of the country.

The basis of all this is to rely on the current "wartime special needs". The war has just broken out for seven months, but the profits of the companies belonging to the ** company have exceeded the total in the past two years. Taking steel as an example, the price doubled in seven months, which means that the profit has increased from 50% in the past to 1 now, and the price of steel is still soaring. According to the company's calculations, at this current soaring rate, by the end of the year, the production capacity of the steel company can not only double, but also return all investments.

Based on such huge profits, the company will include the enterprises that should have invested and built in the next two or three years on the construction agenda of this year and next two years. If this war is speculated by Zhiyuan, if it lasts for another three years, the company will be able to rely on its own strength to complete the transformation of China into an industrial country, and can even obtain a huge amount of foreign exchange of tens of billions of yuan. With that amount of funds, it is not difficult for the company to resist post-war dumping, and at the same time, it can further improve the company's industrial system.

However, using funds to resist dumping is to some extent a trick to kill 800 enemies and lose 1,000 enemies. However, in the face of external pressure, sometimes this is the only way.

"Indeed, with the company's financial resources, it can completely resist external dumping, but killing 800 enemies and losing 1,000 yourself is impossible to change. Manager Mu, is there no better way than this?"

Fan Xudong's retort made Mu Xiang's expression become extremely solemn. He turned his gaze out the window, and after thinking for a while, he asked back.

"What, does Mingjun have any good solutions?"

"Manager Mu, let me give an example. Take the British Bunemen Company as an example. It has always monopolized the soda ash market in China and Japan. After the war, it was restricted and it needed to meet domestic demand first. Therefore, Japan's soda ash market supply was affected. Wynn took this opportunity to enter the Japanese market and gained 30% of the market share. In China, we got 758. However, for Bunemen Company, they are facing a sudden surge in their own market. But it is undeniable that after the war, it will make a comeback. When it sees that China's own alkali-making company has succeeded, it will definitely not be willing to share the market with us. According to normal market rules, it will transfer a large number of soda ash to dump in the Asian market at a low price, in an attempt to squeeze out Wynn."

"Um!"

Mu Xiang nodded. As a businessman, he would have done this.

"It's common sense."

"But the strength of Wynn and Bunemen Company is very different, and it is obvious that they cannot compete with it head-on.

If Wynn also sells products at a lower price, it will not take long, and its strength will be completely lost. If the price is not reduced, the product cannot be sold, funds cannot be recovered, and the two production cannot be carried out. It will not take long, and Wynn will still go bankrupt!"

Fan Xudong is just taking Wynn as an example. Although Wynn now has the title of "China's second largest chemical company", it is far from comparable to Bu Neimen Company.

"This is killing eight hundred enemies and losing one thousand of them!"

While talking to himself, Mu Xiang's expression seemed more serious. In addition to the low-priced dumping of war, the only way to use is to bidding competition. This trick is actually to support the competition by whoever has more money and whoever has more money. This competition means that the wealth accumulated during the war will be quickly lost in this process.

Therefore, compared with this, the company is more willing to put its hopes on Zhiyuan's appointment as Prime Minister, and then implement tariff protection by reclaiming tariff rights to avoid low-priced dumping in other countries.

"But why, we can't change our thinking?"

Change your thinking?

But Mu Xiang took a look at him, what would he think?

"The competition to reduce prices is to face the enemy head-on. Among the 36 strategies, isn't there a besiege of Wei to save Zhao?"

"Bound Wei and save Zhao?"

With his eyebrows slightly closed, Mu Xiang whispered these four words beside him, he personally poured a cup of tea for Fan Xudong.

“——Come and have some tea first!”

At the same time, he took the opportunity to think about Fan Xudong's surrounded Wei and saved Zhao in his mind.

And drinking tea.

When Fan Xudong glanced at his watch, it was 5 o'clock. Since entering this office, he had been talking to Mu Xiang for about two hours, and was constantly leading the topic in the direction he needed.

"Taking Bunemen Company as an example, as we all know, globally, companies from the United Kingdom and Germany monopolize more than 70% of the market!"

When giving an example, Fan Xudong still used the industry he was most familiar with as an example.

"Because of the domestic demand and production capacity relationship, the number of chemicals such as dyes that Bunemen Company can reach the Americas will not be too many. It can be said that the entire United States and the American market must be out of stock..."

“American market?”

Fan Xudong's words had already made Mu Xiang feel very interested. Although he had some questions in his heart, he did not interrupt his speech.

"Manager Mu, taking phenol as an example, phenol is a coal tar product, and the UK's coal chemical technology ranks the world's leading level, so most of the world's phenol is imported from the UK. After the declaration of war in the UK and Germany, the British Parliament ordered the requisition of most domestic phenols to be used to make trinitrophenol, that is, picric acid**. The phenol sent to the United States has been greatly reduced........."

When he heard phenol, Mu Xiang's lips raised slightly, a decrease of 7%. When Fan Xudong explained, he said in his heart that the company had already started producing phenol long before the war, and at the same time, it purchased nearly 10,000 tons of phenol in the international market. Because the requisition of the UK directly caused the supply and demand laws of the world's phenol market to take effect. The price of phenol surged. In August last year, 10 cents per pound, and by February this year, the company made more than 10 million US dollars in net profit, and that money became heavy machinery and equipment. Those equipment was ordered before the war, and the current steel price surged. By the end of the year, those equipment were steel alone, almost equivalent to the original payment.

"The supply of phenol in the United States has directly led to a long rise in phenol prices. At the same time, it has also caused some companies to try to build their own phenol synthesis factories. In addition to traditional chemical companies like DuPont, such as Thomas Edison. In order to make phonograph records, phenol is also needed, so he also plans to set up a factory, but these companies will eventually wait until the end of the year to start production."

When Mu Xiang nodded repeatedly for approval, he looked at Fan Xudong when he poured a cup of tea again.

"But when the US market is tight, what are the 2,000 tons of phenol produced by Republic dye every month sold?"

Fan Xudong suddenly changed his mind and asked

"Before, I read an old newspaper. In the third year of the Republic of China, China imported 1,000 tons of picric acid from the UK!"

While putting down the teacup, Fan Xudong turned his attention to Mu Xiang.

"But in January 4, we exported 1500 tons of picric acid to the UK! Two thousand tons of phenol! It turned out that we sold all phenols to the British to make them!"

“**’s profit is huge!”

Mu Xiang. Shi replied.

"The profits of ** are indeed large, but why can't we consider the demands of the US market while exporting *** to the UK! Just like dyes!"

Asked back, Fan Xudong answered this question on his own.

"Yes, yes. Now there is a word called "wartime special needs". Our companies give priority to the wartime special needs economy that meets the war needs of members of the British, French and Russian Allied Powers!"

With a smile on his face, Fan Xudong looked at Mu Xiang in front of him.

"But what we didn't expect was that because of our focus, we ignored another huge market. Indeed, with the development of our own production capacity in the UK and France, we will sell goods to the United States in the future. However, when DuPont and Edison's factories were already in production, we had to face competition with American products when we launched a large-scale attack. In this process, while the production capacity of Europe and the United States expanded, our market was artificially reduced because of our short-sightedness."

"You said it's right!"

After pondering for a while, Mu Xiang realized that what Fan Xudong said was the truth.

"So, now, I think that when we are fully developing wartime special needs, we should not only focus on the belligerent countries, but also focus on the whole world. Just like the United States, the United States' chemical industry lags behind Europe. Before the war, the chemical industry of Britain and Germany occupied the US market. If we strive to fill the gap in the US market now, we can not only block the development of the United States' own chemical industry, but also seize the market of Britain and Germany in the US. When we gain a foothold in the United States, even if the war is over, even if the chemical companies of Britain and Germany want to implement dumping policies, they must consider the market share we occupy..."

Listening to Fan Xudong's story, Mu Xiang felt his eyes lit up. He expanded the "battlefield" from China to the United States, and even the entire Asia and America. In such a battlefield environment, even the most powerful companies dare not start a price war without authorization. When he fought a price war in China, China could pull them into a price war in the United States. In the end, the chemical companies of Britain and Germany, which were afraid of being vulnerable to the enemy, could only......

"……………Faced with such a huge market, even if they are not willing to do so, they can only negotiate through negotiations. At the same time, we share the world chemical market. Of course, we are a little late now, but after all, it has started, and it is still urgent now. It will be too late until next year!"

While saying the word "after all", in Mu Xiang's office, Fan Xudong waved his hand to emphasize his tone.

"I have to admit it."

Nodding, Mu Xiang continued to praise.

"This is indeed a way to "swallow" Wei to save Zhao."

In addition to praise, he said.

"However, this method seems to be only suitable for the chemical industry, a specific industry that is monopolized by Britain and Germany!"

There is a fundamental premise for implementing this kind of "swallowing" Wei to save Zhao, that is, a certain industry around the world is monopolized by several large companies, while the chemical industry is this world-wide monopoly.

"As for suitable for an industry, this can save the company at least 20 million!"


Chapter completed!
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