Silicon Valley

Chapter 474 Steel (two in one)

Rio Tinto Group has been planning for a long time in order to win the Australian Northern Mining Company, and it is impossible to give up easily. Henry's intervention caught them off guard. This spoiler has also greatly increased the cost of acquisitions. To put it bluntly, it is not good for others.

After some consideration by Rio Tinto's board of directors, the purchase price was raised to US$20.5 billion. However, Henry immediately followed up and offered $21 billion, which was a must for Australia's Northern Mining Company!

Northern Mining Corporation of Australia is one of the world's largest mining companies, especially in Australia with a large number of iron mines.

Large-scale Australian miners have low production costs, and their iron ore has always been favored by investors for its high-grade iron ore. Among the various production areas in the world, Australia has the lowest cost. The mining cost of large mines is 30 US dollars per ton, while the mining cost of China, Vietnam and other countries with many poor ore is relatively high. The cost of ore mining in China is 130 US dollars / ton or so. This is why one Australia can support the world's two largest mining giants!

The reason why Rio Tinto Group can become the world's second largest mining giant is because of the acquisition of Australia's Northern Mining Company, so Henry will not give it this opportunity. The BHP Billiton in the previous life has been acquired by Henry. If it acquires the Australian Northern Mining Company, its strength is unparalleled, and the pricing power can be completely controlled by itself. In order to get cheap minerals, countless countries or companies had to show their favor to Henry!

If Henry raises the price of iron ore, the world economy will tremble! Because all industries that need to use steel and related industries will be greatly affected!

In the face of Henry's aggressiveness, Rio Tinto finally turned back.

Henry acquired the Australian Northern Mining Company and immediately merged it into the Williams Mining Group. In just a few months, the most powerful mining company in history was born, much to the dismay of countries around the world. The major consortium families witnessed the rise of Henry, and could only sigh with admiration. Most of them only pay attention to finance and ignore the development of science and technology. Coupled with Henry's foresight, they took advantage of the Japanese financial bubble, the disintegration of the Soviet Union, the Asian financial crisis and other opportunities to rise strongly at an unimaginable and astonishing speed. It was so powerful that even if he wanted to stop him after that, he could only be vain. And as Henry's influence is getting stronger and stronger, the major consortiums can only temporarily avoid his edge and dare not fight him!

Today, these consortiums can only make small moves behind their backs, and there are only a handful of people who dare to challenge Henry publicly. Some people say that the Williams family has grown into the largest family in the world, and its influence has even surpassed the Rothschild family in its heyday! At that time, the main influence of the Rothschild family was in the financial field, but the Williams family blossomed everywhere, and all walks of life were industry leaders, and even formed a monopoly! The huge wealth it has accumulated has even made people willing to start the third world war for it...

Minerals are just natural minerals dug from mines, which need to be processed in various ways to become metal materials with certain properties. Therefore, it is necessary to establish a metallurgical department to carry out iron-making, steel-making, gold smelting, extraction of non-ferrous metals and so on. BHP, Billiton, and Australia's Northern Mining Company have their own metallurgical divisions, but there is no focus on developing here. Mining companies and steel companies are distinct companies. Being both a referee and an athlete will undoubtedly attract jealousy. Obviously, the establishment of steel companies by mining companies has huge competitiveness in smelting costs, which will inevitably cause losses to other steel companies. Naturally, steel companies will resist this behavior and go to other places to buy minerals.

But for Henry, building a steel company was imperative. There are too many companies in his name that use various metal materials. What is the use of minerals that cannot be refined into usable metals?

Some people are born great, Henry was born to break the rules! ! !

Needless to say, Henry immediately ordered people to separate all the metallurgical departments of Williams Mining Group, established Williams Steel Company, and at the same time poached people from major steel companies in the world. Henry this time, can be regarded as provoked anger. Nippon Steel, Japan's largest steel company, took the lead in protesting, saying that if Henry Williams insisted on establishing Williams Steel, Nippon Steel would refuse to buy minerals from Williams Mining and cancel the order. This was followed by a similar statement from Japan's second largest steel company, Nippon Steel Pipe!

Henry couldn't help sneering, and sure enough, Japan is still kind to me! ! !

OK, then I'm welcome, I'll poach people from Japan!

In terms of production scale, among the top five steel companies in the world, Nippon Steel and Nippon Steel Pipe are ranked second and fourth respectively; in terms of production technology, Nippon Steel ranks first in the world and Nippon Steel ranks third in the world. Don't dig Japan, dig where!

Henry then contacted many headhunting companies to help poach people. Money is not an issue, but stealing talents and bringing down the Japanese steel industry is the key!

At this time, global media reporters flocked to Melbourne, because they all knew that Henry was in Melbourne at the moment.

Henry held a press conference as they wished.

As soon as Henry came to the stage, the reporters in the audience couldn't help but ask questions one after another.

"Mr. Williams, Williams Mining Company monopolizes more than 45.6% of the world's minerals, and every move has a huge impact. Now, because of establishing its own steel company, it will naturally attract opposition from other steel companies. Among them, Williams Nippon Steel and Nippon Steel Co., two of the mining industry's two largest customers, even issued statements one after another, threatening to cancel their orders if Williams Steel was not written off. Mr. Williams, what do you think?"

"..."

Henry picked up the microphone with a slight smile on his face.

"Hello friends from the media, welcome to this press conference. First of all, I have one thing to announce."

Henry paused, glanced at everyone, and said lightly: "From today, Williams Mining Group refuses to provide any minerals to Nippon Steel and Nippon Steel!"

As soon as these words came out, the audience was in an uproar!

Nippon Steel and Nippon Steel Pipe are big customers. The amount of iron ore they need every year is a huge amount of data. Countless mining companies smashed their heads in order to compete for their orders. However, Henry Williams said lightly that from now on, he refused to provide any minerals to Nippon Steel and Nippon Steel Pipe. Isn't this actively pushing the business out? Could it be that Henry Williams got water in his head?

"Baga!!!" The directors of Nippon Steel and Nippon Steel Pipe Co., Ltd., who were watching the live broadcast from far away in Japan, scolded immediately. They believed that they were steel giants. Henry would definitely give in, but he did not expect that Henry would be so decisive and directly announced refuse to supply them with minerals. It's like putting your face together, thinking that the other party won't hit me, thinking, after all, I'm very cool, do you dare to hit me? Unexpectedly, Henry just hit, "slap" twice, giving Nippon Steel and Nippon Steel Tube a severe slap in the face.

Williams Mining refused to provide them with minerals. Although Williams Mining suffered heavy losses, did Nippon Steel and Nippon Steel Pipe lose much? First, if the supply of goods is cut off, the steel output in a short period of time will inevitably decrease; second, the demand for iron ore is huge, and it is not easy to find a stable supplier. Even if it is found, the other party will inevitably increase the price. Who is Williams? The mining industry does not sell it to it, but can only buy it from here; thirdly, the transportation is inconvenient, Australia is close to Japan, but if the goods are purchased from other places, the transportation cost will increase sharply, and the risk will increase!

Various factors will inevitably lead to the decline of the international competitiveness of Nippon Steel and Nippon Steel Pipe Corporation, resulting in great losses! At the same time, the Japanese steel industry will also suffer a setback!

Henry raised his hand and signaled everyone to be quiet, and immediately said lightly: "Now, I want to announce the second thing. For companies that cooperate with Williams Mining Group, the price of iron ore will be much lower than the price on the market. As for the price of iron ore in the market. How much lower depends on the specific cooperation situation, if I'm in a good mood, I don't care if I only earn $1!"

Henry said, took two steps forward, facing the camera, and said with a smile: "Of course, if there are companies like Nippon Steel and Nippon Steel Pipe who want to cancel orders, you are welcome to come forward..."

The reporters were stunned when they heard this.

Are you welcome to bring it up? Who would be so stupid. Just now Henry Williams said that as long as you cooperate, the price of iron ore will be much lower than the market price. If you don't cooperate, others will cooperate. Nippon Steel and Nippon Steel Pipe are obviously two counter-examples. Henry's announcement of refusing to provide any minerals to these two companies is just a warning. Whoever dares to disagree with Henry will not be able to get cheap minerals just like the two companies!

Henry has strong capital and makes less money from mining, it doesn't matter. Rich and willful, what can you do?

In order to obtain cheap minerals, which major steel companies in the world do not want to buy from Williams Mining Group?

As for Henry's establishment of the Williams Steel Company, naturally no one dared to gossip. When the Williams Steel Company develops, it can make much more money than simply selling mines.

The bustling world is for profit, and the bustling world is for profit. Henry made a conspiracy and focused on long-term interests. Although other companies knew about it, they were helpless.

After the press conference, major steel companies around the world sent representatives to discuss cooperation matters.

On the same day, the stock prices of Nippon Steel and Nippon Steel Pipe Corporation plummeted wildly! Without Williams Mining, where would they find such a good partner?

At this time, Brazil's Vale and other mining companies also came. If Henry did this, the price of iron ore would plummet and the losses would be severe. Other mining companies had to talk to Henry.

So, after Henry established Williams Mining Company, the first meeting between mining giants was officially held.

The top mining companies in the world gathered in Melbourne, the headquarters of Williams Mining Company, with hundreds of participants.

"Mr. Williams, the price of iron ore can't be too low, otherwise, we won't be able to make any money! You know, the price you sell is low, and we have to cut the price!" A person from Vale, Brazil The representative said helplessly.

"That's right, Mr. Williams. As a mining tycoon, you can affect your whole body. As long as everyone negotiates the price together, you can manipulate the price of mine to make money!"

"Yes, our companies together are enough to monopolize more than 80% of the world's minerals, and we can completely manipulate prices!"

"Yes, as long as there is unity, those steel companies have no choice but to buy my minerals at high prices!"

"..."

At this time, Henry suddenly realized that the relationship between mining companies and steel companies was both cooperative and antagonistic. The steel company hopes to get the cheapest ore price, and the mining company hopes to raise the ore price as much as possible. As a giant in the global mining industry, Williams Mining Group should lead a group of younger brothers to beat the steel company!

Mala next door, let's raise the price of iron ore first! ! !

Henry's eyes flashed a little light, and he glanced at everyone, and said loudly: "Well, what you said makes sense. I think this way, everyone will set up a mining organization and hold a meeting every six months to unify the prices of various minerals in the market. , to safeguard our interests!"

Mineral Organization?

When everyone heard this, they applauded.

"Mr. Williams' proposal is very good. As we all know, there is an 'OPEC' Organization of Petroleum Exporting Countries in the world to regulate oil prices and obtain high profits, but there is no decent organization for minerals!"

"Yes, we should also establish a mining organization to safeguard everyone's interests!"

"Seconded!"

"Seconded!"

"Seconded!"

"..."

The people present, invariably seconded.

The representative of Brazil's Vale looked at Henry and asked, "Mr. Williams, you proposed the mineral organization. What do you think the name of the organization should be?"

name?

Henry thought for a while and said, "Simply, how about the 'Earth Mineral Organization'?"

The name is just a code name, and everyone nodded in agreement when they saw Henry said it.

Then, everyone began to discuss how to form a mining organization and the distribution of power. For a time, the conference room was as noisy as a vegetable market.

It seems that, for a while, the mineral organization cannot be established.

When the meeting was about to end, Henry proposed to raise the price of iron ore first and raise the price by about 10%, but it was unanimously approved by everyone.

"In addition, you can slaughter Nippon Steel and Nippon Steel Pipe Company as much as you like. I think these two companies will definitely lack iron ore for a long time to come!"

When everyone heard this, they laughed tacitly, and they would do the same without Henry saying it. Williams Mining Group sold iron ore to its partners at a lower price than the market. Naturally, the customers of other mining companies would decrease, just to compensate Nippon Steel and Nippon Steel Pipe Co., Ltd.!

In the next few days, one was busy receiving the partners of Williams Mining Group, the other was discussing the establishment of the Earth Mining Organization, and the third was the establishment of a complete Williams Steel Company.

Henry wants to transfer all the steel orders under his name to Williams Steel Company, but with the company's current technology and scale, it is still unable to undertake these orders. And the simplest, crudest and most effective solution is to acquire other steel companies. So, Henry asked people to bring over the information of the major steel companies in the world. After research, he decided to acquire a large steel company. At this moment, a name entered Henry's sight.

Mittal! ! !

The Iron King of the World - Mittal! ! !

This is a billionaire of Indian origin. The Mittal Group he established started from a very small company, and in 2005, it rose to become the world's largest steel group. After that, the scale of mergers was not much different. And it is the largest steel group Arcelor in Europe, and then formed the behemoth of the steel industry - Arcelor-Mittal!

The secret of his success has been summed up as: to acquire and merge at the most appropriate time, and to use the most shrewd management techniques to expand the acquired companies.

I have to say that Indians are very good, and being a CEO is definitely a good player! No wonder that more and more CEOs of Fortune 500 companies in previous lives were of Indian descent.

Mittal is a genius among geniuses. With his help, there is no need to worry about the steel company's failure to develop.

At present, Mittal's current worth is less than 1 billion US dollars. The Mittal Group can only be regarded as a medium-sized group, but in just 5 years, its worth has skyrocketed. In 2005, it was listed by the US "Forbes" magazine for 25 billion US dollars. No. 3 on the list of the world's richest people, Bill Gates and Buffett are ahead of him.

Investing in potential stocks is a must, and Henry has no time to manage the company, so it will be more worry-free if there are good people in charge.

Right now, Williams Steel shouldn't expand too much. Williams Steel Company is still small, and other steel companies can tolerate it. If it acquires several large steel companies, it is easy to cause backlash and hostility from other steel companies, and "boiled frogs in warm water" is the best...

(I have something to do at night, maybe I don't have time to update it. The two chapters are sent together.)

(To be continued ~^~)

Tap the screen to use advanced tools Tip: You can use left and right keyboard keys to browse between chapters.

You'll Also Like