Rebirth 2008: I Can Make Money Reading

Chapter 297 Discuss cooperation (seeking monthly ticket)

The strategy department of Xinghai Group rushed all night and all night. On the second day, they handed over more detailed information of Hydro Aluminum Company to Mu Yang.

After reading the information, Mu Yang has a deeper understanding of Hydro Aluminum Company. At the same time, he has to divide the cooperation areas, such as the Huaguo market, which is definitely not within the scope of cooperation. It is mainly the European and American markets. talk.

Similarly, Asem and his entourage analyzed Xinghai Group's aluminum alloy automotive sheet factory. If they cooperate, what they need to produce and what they will get; if they do not cooperate, how much they will lose.

Everything is based on a win-win situation.

At present, the global competition for aluminum alloy automotive sheets is severe, especially after Xinghai Group joined the international market to grab market share.

Last year, the global demand for aluminum alloy automotive plates was about one million tons, of which Novelis had a market share of almost 50%, or about 500,000 tons;

Next is Hydro Aluminum Company, although it is the second place, but the market share only accounts for about 18%, 180,000 tons (about 930 million U.S. dollars, the company's annual output value of about 8.11 billion U.S. dollars last year, aluminum alloy automotive plates just one of the businesses);

The third is ALCOA, whose market share is only about 15%.

Alcoa is a behemoth, established in 1888, it is the third largest aluminum producer in the world after Rio Tinto Group and Rusal Group. Key products include rolled products, wheels, forgings, fastener systems, precision castings and solutions in the field of building systems, among others. The technology also involves other light metals, including titanium, nickel and superalloys.

On May 7, 2007, Alcoa initiated a hostile takeover of the Alcan Group with a total value of 27 billion U.S. dollars, aiming to merge into the world's largest aluminum producer.

However, the acquisition failed in the end.

Therefore, if Xinghai Group cooperates with Hydro Aluminum in the business of aluminum alloy automotive plates, apart from Novelis, its biggest rival, there will also be Alcoa.

Now, the Xinghai Group wants to come in to grab the cakes, grab the domestic ones, and grab the foreign ones.

The domestic market is not large. According to Mu Yang's previous estimates, it is estimated that the demand for aluminum alloy body panels in my country's auto industry will be about 70,000 tons around 2011.

At present, Xinghai Group's annual output of aluminum alloy automotive plates may reach 200,000 tons, and plans to build a second phase of 300,000 tons.

According to the current sales price and the current sales situation of Xinghai Group, the domestic market share is about 50%, mainly because Yiqi and Shangqi have not yet been settled.

In the overseas market, Porsche has been settled, but it is impossible to purchase all Porsches from Xinghai Group, and supply risks must also be considered.

In other words, the sales volume of Xinghai Group is currently only about 80,000 tons per year, which is far from 200,000 tons per year.

Xinghai Group wants to sell the remaining 120,000 tons of production capacity, mainly from overseas markets, but there is not much progress in the international market at present, which is also what Mu Yang is worried about, unless he is willing to cut prices, but if he does so, It must be accused by peers that malicious competition will destroy the local market, and the local country will increase tariffs on Xinghai Group.

The demand for aluminum alloy automotive plates is increasing. Next year, the domestic demand for aluminum alloy automotive plates may reach 100,000 tons, and the global demand for aluminum alloy automotive plates will reach 1.4 million tons.

In this way, the Xinghai Group's annual output of 200,000 tons will be digested quickly, but it is still far from Muyang's market share target. It is looking for a strong partnership to increase its global market share and earn more money.

If Xinghai Group is willing to cut prices and domestic automobile manufacturers are willing to increase the use of aluminum alloy instead of steel, the demand for aluminum alloy automotive plates will increase sharply in order to achieve small profits but quick turnover.

But Mu Yang feels that small profits but quick turnover is too laborious, and it may not be more profitable than before. Moreover, it is impossible for an automobile factory to be willing to replace aluminum alloy automotive panels at once, and design updates are a long process.

On August 3rd, at nine o'clock in the morning of the third day.

Asem and his entourage came to the old Xinghai Group company again.

Mu Yang had been waiting for a long time, and the two sides started the real negotiation in the conference room.

Asem explained the advantages of his own company, which sales channels and technological advantages the Xinghai Group has in the world that Xinghai Group does not have, etc.

After finishing speaking, he went straight to the topic: "Mr. Mu, I suggest that we cooperate to establish a new aluminum alloy automotive sheet factory. You will provide the production line and technology, and we will provide funds and personnel to be responsible for sales and after-sales matters. As for the division of shares, We can discuss it later.”

As for the independent technology authorization, it won't get much money, and Mu Yang has already rejected him, so the only option is to establish a new company in partnership, and everyone will share the money.

"Cooperation is not impossible, so what do you think, how much is our production line worth, how much is the process technology worth? Let me reiterate, I will not sell process technology and production line drawings." Mu Yang is not opposed to cooperation. The recipe will not be sold to Hydro Aluminium, but licensed for use.

However, with such cooperation, the equipment of Hydro Aluminum's original aluminum alloy factory will be eliminated, which is inevitable.

Then, the personnel of Hydro Aluminum Company must understand the process and learn how to operate the equipment. It cannot be said that it cannot be operated without Chinese personnel.

In the cooperative factory, Hydro has the right to use the technology, but does not have the right to transfer the technology or use it in other factories. Of course, Muyang will not open the core technology.

If Hydro imitates the equipment, it is also an infringement, and these details must be clearly explained.

"What if the Xinghai Group will develop better technology and production lines? If it is updated, will there be an additional price?" Acem must take this into consideration. If the Xinghai Group is not responsible, then in the future , the factories they cooperated with fell behind.

Of course, this cooperation is an exclusive cooperation. In the aluminum alloy automotive sheet project, Xinghai Group no longer cooperates with other companies in the production of aluminum alloy automotive sheets. The same is true for Hydro Aluminum, and the two parties have established an alliance.

However, except for the aluminum alloy automotive plate project, there will be no restrictions.

"Mr. Assem, since we have cooperated, of course we are also responsible for subsequent technical optimization and equipment improvement. You don't need to pay additional fees. We need a win-win situation." Mu Yang replied, if the other party is asked to pay additional fees, then the other party Certainly unwilling, "But if due to technical optimization and equipment improvement, it is required to improve the plant and others, Hydro will be responsible."

"this is necessary."

"Then let's talk about how much this equipment is worth first?" Mu Yang nodded, and continued,

"A production line costs about US$40 million and can produce 20,000 tons of aluminum alloy automotive panels per year.

In the next year, we can plan to produce 600,000 tons per year, so we need 30 production lines to meet the needs of the international market and grab orders from competitors. Moreover, due to the advanced nature of equipment, less labor force and less energy consumption will be used. , less failure rate, etc. Our production cost is 300 US dollars/ton lower than the conventional one, and the overall cost is 400 to 500 US dollars lower. This 600,000 tons will save 180 million to 300 million US dollars. "

Mu Yang replied that the production cost of a production line is 70 million yuan, which is about more than 10 million US dollars, but this is made by himself.

Therefore, the price of the equipment must be based on the market price, which is about 40 million U.S. dollars, and the other party also conducts an appraisal, but it's not that Mu Yang said that so much is worth so much.

Before, Li Shufu from Zheli Group asked Mu Yang how much a production line cost, and Mu Yang said it was 120 million yuan, which was also an exaggeration.

But it does not mean that 120 million yuan can be bought.

Even if it was 40 million US dollars, equivalent to 272 million yuan, Mu Yang would not sell it.

Equipment is one thing, process and technology is another.

"Okay, the difference is not big, and we will estimate it at the end." Assem's expression was light, but he was very happy in his heart. It was not expensive, and sure enough, Huaguo's things were cheap. "What about technology shares? How do you want to value it?"

Asem has estimated the Xinghai Group's equipment. It does use less manpower and material resources, and has various advantages. It is no problem to save three hundred dollars per ton in the overall cost.

Xinghai Group has seized the market with excellent material performance and preferential prices. Hydro Aluminum Company will definitely have a serious impact. Last year it could sell 180,000 tons, but this year it may not be able to reach it, and its market share will drop from 18% to 15%. the following.

If there is no cooperation, be more optimistic. Based on the annual sales of 150,000 tons, the annual profit of Asem will be about 255 million US dollars.

If they cooperate, it will be necessary to cooperate with the annual sales of more than 500,000 tons of aluminum alloy automotive plates. The shareholding ratio is too low, so it is better not to cooperate.

According to Mu Yang's tone, it is unlikely that Hydro Aluminum would like to take a dominant position. They can choose other partners, but Hydro Aluminum requires at least 40% of the shares.

If it accounts for 40% of the shares, the annual sales of 500,000 tons of aluminum alloy automotive plates, and the cost savings of 300 US dollars per ton, Hydro Aluminum can earn 1.57 times the previous net profit, which is about 1.5 times more. billion dollars.

If it can sell more than 600,000 tons, the profit will be 1.88 times that of non-cooperation, and it will probably earn an extra 230 million US dollars.

In this way, there is a need for cooperation.

Of course, if the two sides do not cooperate, under the pressure of competition from Xinghai Group, if you are pessimistic, Hydro Aluminum may not be able to sell 100,000 tons of aluminum alloy automotive sheets a year, and it may not make money.

600,000 tons, for Hydro Aluminum, it is required to increase the market share from 18% to 50%, which is not a difficult task.