Rebirth of the Industrial Tycoon

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"Has the negotiation for Volvo's acquisition of the heavy machinery factory been concluded?"

Li Weidong held the phone, his tone full of surprise, but his expression did not look surprised.

At this time, Li Weidong was bullying Li Zhongwei because he couldn't see his expression, and deliberately possessed him through teasing.

Li Zhongwei, who was on the other end of the phone, said, "I didn't expect the talks to go so quickly. According to the news from the translator we sent, the talks went very smoothly.

After simple bargaining, the two parties determined that Volvo would acquire 90% of the equity of the heavy machinery factory for US$58 million! "

"So cheap? It's less than 500 million yuan. The assets of the heavy machinery factory should be more than this!" Li Weidong said.

"The assessed assets of the heavy machinery plant are more, but Volvo said that they will use the heavy machinery plant as the Volvo Group's production base in Asia. At that time, advanced construction machinery technology will be moved here, and these will also be counted as investments. "Li Zhongwei answered.

"Theoretically, there is no problem. Technology is the primary productive force, and technology can be exchanged for money, but I always feel that it is cheap."

Li Weidong paused and then said: "That Olaf came to visit me before, and it was clear that he wanted to take the opportunity to lower the price. The heavy machinery factory should be able to calm down after knowing these tricks played by the Swedes!"

"Maybe they are eager to complete the signing! After all, the negotiations have been going on for a long time, and they don't want to drag it out any longer." Li Zhongwei paused and then said, "

“I have told the Heavy Machinery Factory about Olaf’s plan and advised Zhang Tao to wait a little longer, but they still agreed to the Swedish conditions.

Although I have the power to guide this matter, it is not convenient for me to interfere too much. It was decided by the country many years ago not to interfere in business operations. As long as there is no sale of state-owned assets at a low price, we will not interfere in business negotiations between enterprises.

And it is also a good thing for Volvo to settle down. If Volvo really builds its Asian production base in Qinghe, the upstream industrial chain will also come, and our city's manufacturing industry will also be greatly improved. "

The settlement of a large enterprise will not only create jobs and tax revenue for itself, but also bring other enterprises in the supply chain, and these enterprises can create more added value. This is also a point that is extremely valued by the local government.

Therefore, when attracting investment, the larger the enterprise, the more the investment personnel will bow to their knees.

If a company like Boeing or Airbus goes to a third-tier city and says I want to put the production line here, the people responsible for attracting investment will be able to serve on their knees throughout the process.

Because of this, Li Zhongwei is happy to see the success of this acquisition.

Anyway, heavy machinery factories are fixed assets. Even if they are sold cheaper, Volvo cannot move them away, and they will end up rotting in Qinghe.

After ending the call with Li Zhongwei, Li Weidong also breathed a sigh of relief.

"I originally thought that Li Zhongwei could help delay it for a year and a half, but I didn't expect that Zhang Tao, a boy with such soft bones, couldn't bear to be frightened, and fell to his knees so easily!"

According to Li Weidong's plan, the negotiation will take at least another half a year to complete. Zhang Tao and his group of subordinates are more greedy than the other and will definitely try their best to get benefits from Volvo.

But he didn't expect that these people couldn't help but scare him. Even though Li Weidong had judged that Volvo's visit to Fukang Engineering was just a price-lowering strategy, Zhang Tao still quickly chose to compromise and signed a contract with Volvo.

"But that's fine. After all, you're leaving the Volvo in Qinghe! It would be really difficult for me to deal with it in any other place. Now that you're here, don't leave. This heavy machinery factory is the prison cage I prepared for you!"

Thinking of this, Li Weidong picked up the phone and dialed a number.

"Hey, Bridge Engineering Research Institute? Please help me find Academician Chen..."

After the news of Volvo's acquisition of Qinghe Heavy Machinery Factory came out, it undoubtedly caused an uproar among domestic peers.

After all, Volvo is the world's top construction machinery company. With the technical level of domestic companies, it will take at least five to ten years to compete with Volvo.

The Swedes are also very efficient, and they quickly shipped part of the production line from Sweden.

With the help of the Swedish people, the entire heavy machinery factory seemed to have returned to the most glorious era ten years ago, and the old factory area was revitalized overnight.

In contrast, there is some panic inside Fukang Engineering. Once heavy machinery factories rise, Fukang Engineering will be the first to bear the brunt.

The small area of ​​Qinghe City cannot support two construction machinery companies, and the nearby market is not large enough for the two construction machinery factories to survive.

The loader factory back then was almost bankrupt due to a run on it by the heavy machinery factory, and was then acquired by Li Weidong. It took Li Weidong nearly ten years to finally push the heavy machinery factory to the edge of bankruptcy.

Today, only one of the heavy machinery factory acquired by Volvo and Fukang Engineering by Li Weidong can survive.

Including Ding Youliang, the management of Fukang Engineering is somewhat worried. After all, they have never directly competed with such an international large enterprise.

Early in the morning, Ding Youliang found Li Weidong.

"Chairman, Volvo's engineers arrived yesterday. It is estimated that the heavy machinery factory will start debugging the new production line soon." Ding Youliang said a little impatiently.

"It shouldn't be a production line for core equipment, right?" Li Weidong continued calmly: "As long as Volvo doesn't move the core technology over, we don't have to worry. Besides, Volvo, which I also laid out, will send the core technology to China so easily. ”

Market exchange for technology has always been an important strategy for China when facing foreign investors. However, there are always some foreign investors who want the Chinese market but are unwilling to use their own technology.

This is the case in the field of construction machinery.

Foreign construction machinery companies have long been eyeing the big market of China, and they can't wait to make money.

However, China is different from other Chinese countries. China only lags behind in technology, but it still has an industrial foundation. It can produce construction machinery itself. Although the performance is inferior, it can be used with makeshift machinery.

Many Chinese countries have no industrial base at all. They really can't produce anything, so they can only be at the mercy of technologically advanced developed countries.

It has a certain industrial foundation, which is also one of the reasons why China can trade the market for technology.

Therefore, as early as the mid-1990s, construction machinery companies in developed countries had begun to cooperate with Chinese companies. From the initial establishment of a joint venture factory for spare parts, to the establishment of a complete construction machinery manufacturing company through joint venture.

Many domestic construction machinery giants also have precedents of cooperation with foreign companies, such as XCMG and Caterpillar, Sany Heavy Industry and John Deere, Changzhou Machinery and Komatsu Manufacturing, etc.

However, these foreign-funded enterprises are not willing to bring core technologies to China. After they establish joint ventures with Chinese enterprises, they try every means to obtain the equity of the enterprises by various means.

Take the joint venture established by XCMG and Caterpillar, for example. At that time, the two parties jointly invested US$82 million to establish an excavator company and jointly operated it based on a 4:6 share ratio.

According to XCMG's plan, it can suffer some losses in terms of investment and shareholding, but as long as Caterpillar can bring over advanced technology, it will not worry about the profitability of the joint venture.

However, this joint venture has been losing money, which is completely beyond XCMG's expectations.

There are two reasons for the loss. First, Caterpillar is unwilling to bring core technology to the joint venture. Without core technology, it can only continue to purchase from abroad.

And this is also the second reason why the joint venture company is losing money, that is, a foreign company purchases core products from Caterpillar.

This is also the operation of many foreign-funded companies, and it is no secret in the manufacturing industry.

The reason why Caterpillar did this was to force XCMG to withdraw from the joint venture and achieve the purpose of becoming a sole proprietorship.

In the following years, Carter's shareholding ratio was continuously increased by means of capital increase and share expansion, while XCMG's shareholding ratio was diluted from 40 to 15.97.

In the end, Caterpillar simply gave up and asked XCMG to withdraw from the joint venture.

This joint venture will be the future Xushui Machinery Manufacturing Co., Ltd.

Fortunately, XCMG itself has two plans. While establishing a joint venture, XCMG has been researching excavators on its own.

After XCMG withdrew from the joint venture, it began to launch its own excavators, initially small excavators, and then further transitioned to medium and large excavators. In the end, it became one of the top construction machinery companies in the world, capable of challenging Caterpillar.

Caterpillar wants the market but refuses to provide technology. In the end, most of the many companies they invested in China were reduced to factories producing parts. After the rise of Chinese companies such as XCMG, Sany, and Zoomlion, they have become Caterpillar's competitors.

Foreign construction machinery companies have always used "absolute holding and brand control" as the rules of the game in overseas mergers and acquisitions.

In fact, this method was used by Caterpillar in Japan back then, and the one they used was the famous Mitsubishi Heavy Industries.

When Caterpillar invested in Japan, each of the joint ventures with Mitsubishi Heavy Industries held 50% of the shares. Within a few years, Caterpillar's shares became 67%.

This has also delayed the expansion of Mitsubishi Heavy Industries in the field of construction machinery, allowing companies such as Komatsu Manufacturing, Hitachi Construction Machinery, and Kobelco Construction Machinery to catch up and surpass Mitsubishi, the big brother, in the field of construction machinery.

Li Weidong understands the behavior of foreign-funded enterprises very well and knows that they will never bring core technologies to China. Companies like German Volkswagen that are willing to move technology from more than ten years ago to China are already considered conscientious companies.

Therefore, Li Weidong is not in a hurry about Volvo's investment. As long as Volvo does not bring core technologies, Chinese companies will still have room to compete.

What's more, Li Weidong also had second-hand preparations. He had already set a big trap for Volvo.

Now, some of Volvo's parts production lines have been moved here, and Li Weidong's plan is about to be implemented.

Under the leadership of his secretary, Li Weidong walked into Li Zhongwei's office. At this time, Li Zhongwei was lowering his head to review documents. He looked up at Li Weidong and said, "Chairman Li, please sit down first."

The secretary brought a cup of tea to Li Weidong. Li Weidong thanked him and then said: "Boss, seeing that you are very busy, I will keep the story short. I am here to see you today and I have two things to report.

The first thing is that the real estate development loan has been approved, but the bank needs to go through procedures to mobilize funds, so the loan will be received in batches within the next three months.

However, I have already started the construction of the ceramic products mall. The construction period is expected to be ten months, plus various acceptance work and internal decoration. If it goes faster, it can be opened by this time next year! "

"It will be operational next year, faster than I thought!" Li Zhongwei raised his head and continued: "But we must pay attention to the quality of the project and not cut corners."

"Leader, don't worry, I'm building a market for myself. How can I cut corners on my own house?" Li Weidong laughed, and then said: "As for the second thing..."

Li Weidong stood up and walked to a wall. There were three maps hanging on the wall. The first was a map of Qinghe City, the second was a map of Handong Province, and the third was a map of the whole country. .

As for the world map, although there is no one on the wall, there is a globe on Li Zhongwei's desk.

Li Weidong pointed to the national map and said, "Our wholesale mall currently has two main trade routes, one is to the Beijing-Tianjin area in the north, and the other is to the Yangtze River Delta area in the south. These two routes mainly take the Beijing-Shanghai Expressway. ”

Li Weidong pointed to the route of the Beijing-Shanghai Expressway and continued, "I plan to open up a third trade route, which is to go east, to Dongdao City, Shigang and Laigang!"

"Are you planning international trade?" Li Zhongwei had already put down the documents in his hands and listened carefully to Li Weidong's explanation.

Li Weidong explained: "In the past few years, Yiwu was mainly engaged in domestic trade. In recent years, it has started to engage in international trade. I heard that it has made a lot of money. Since we want to catch up with Yiwu, we cannot lag behind in this aspect!"

We open up a trade route to the East and then engage in international trade. The closer ones can do business with Japan and South Korea, and the farther ones can cross the Pacific and do business with the United States and earn US dollars! "

Li Weidong walked to the map of Qinghe City again and introduced: "We usually transport goods eastward by rail. This is also a conventional route and has been used for decades.

However, there is a disadvantage of railway transportation. It is not just possible to take goods away if you want. The railway department has the final say on when goods can be transported and how much can be transported at a time. And in many cases, if it can’t fit into one carriage, people won’t transport it at all.

In addition, railway transportation also needs to transport the goods to the railway station. When unloading, the customer also needs to hire a car to transport it to his own warehouse, which is quite troublesome.

The second is road transportation. The advantage of road transportation is that it is fast and flexible. The goods can be moved whenever they want, and they can be transported directly to the location specified by the customer. Therefore, currently, merchants in our wholesale mall ship goods to the east. Still mainly on roads.

Leaders, please see, the road transportation route mainly goes like this. Because it has to bypass the urban area, after starting from the wholesale mall, first go to Nanrao for 25 kilometers, take the Shengli Bridge, cross the lower reaches of Qinghe, and then go to Province 225 Road, go north to the 206 National Highway, and then go east.

This detour requires at least 60 kilometers of extra walking, which is really inconvenient. It has already affected our commercial transportation to the east, so I wonder if we can build another bridge near National Highway 206. In this way, freight vehicles don’t have to travel so far, they can directly cross the bridge and get onto National Highway 206! "

"Build a bridge?" Li Zhongwei frowned and thought for a moment, and then said: "Building a bridge is a good thing. It can also promote communication between the two sides of the Qinghe River.

However, repairing a bridge requires a large amount of funds, especially a bridge carrying freight vehicles, which requires a large investment. With the current financial situation of Qinghe City, we cannot spend so much money to repair this bridge! "

Li Weidong smiled slightly; "Leader, I didn't say we should build it now, I just proposed such a plan. And when we really need to build the bridge, we can also use social financing.

At least the logistics companies in the wholesale mall are definitely willing to pay. A 60-kilometer trip to Shaorao is 120 kilometers round trip, which can also save a lot of gas money! "

Li Zhongwei nodded: "With the development of the city, building bridges is inevitable, so this plan is definitely feasible, but where to build it, how to build it, and what kind of building it needs, planning, research, and expert discussion are still needed. ”

"That's what the leader said." Li Weidong continued; "I know an expert named Chen Tongshu. He is an expert at the Bridge Research Institute and an academician of the Academy of Sciences. I would like to invite him to come over first and make a plan for us. "

"Academician of the Academy of Sciences? That's much better than the bridge experts here!" Li Zhongwei said immediately; "Chairman Li, if Academician Chen really comes to our Qinghe, you have to inform us in advance so that we can greet Academician Chen. Wash off the dust!”

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