Chapter 112: The foundry arrives
"Mr. Yamamoto, if you Sony are currently having financial difficulties, we can also do it another way. β
Zheng Yan remembered the electronic product foundry that is now settled in Tianjin City. Originally, Zheng Yan's plan was to buy the factory from the company after selling the shares, but now it can be flexible.
"Zheng Jun, what do you mean?" asked Yamamoto, puzzled.
"Mr. Yamamoto, you should remember that at the beginning of the establishment of the company, I asked to build an electronic product foundry in the mainland, and now the factory has settled in Tianjin City, and I want to take over. Originally, after this stake, I was going to make some investments in our country, and I wanted to use the 5% of the funds to buy the ownership of the factory. β
Land prices in Japan will plummet in a year's time, but land prices in China will rise in the next 30 years, especially in the municipality of Tsu.
Yamamoto was even more strange when he heard Zheng Yan's words, Zheng Yan sold the shares with unlimited potential in his hand, but wanted to take over a worthless factory in Yamamoto's eyes. Now that factory was built solely to fulfill the contract, and Yamamoto never paid attention to it.
Although Yamamoto didn't understand Zheng Yan's intentions, he believed in Zheng Yan's vision and didn't rush to agree.
"Mr. Yamamoto, you can think about it before giving me an answer. I've always had the idea of building a factory, and you should know that. The reason why I want to take over the factory is because the construction of the factory is almost completed, so I don't have to worry about some preliminary work. Of course, if you don't plan to sell, then I can only buy a piece of land and build a factory by myself. β
"Zheng Jun, that factory will exist because of your requirements, and it's okay to sell it to you, but in terms of price?"
Yamamoto thinks that he is at a disadvantage in this negotiation, and thinks that he can find some confidence in the sale of the factory.
"Mr. Yamamoto, you don't think that the remaining 5 percent of the capital can't buy that factory, right? Based on the current stock price, the remaining 5 percent is worth more than 100 million dollars. Judging from the current land price, building material price and labor cost of our Huaxia, the current value of the factory is definitely not more than 100 million Huaxia yuan. And now that the exchange rate between the U.S. dollar and the Huaxia currency is around 3.7, do you think I'd be stupid enough to buy that factory at nearly four times the price?" Zheng Yan looked at Yamamoto Masashi with a little playfulness.
Yamamoto also knew that he was a little naΓ―ve, "Zheng Jun, of course I don't mean to exchange that factory for the rest of the funds, but we still need to talk about the price." Although there are some differences in your estimated plant value, there is not much difference. But after all, we have also invested a lot of energy, and the current land market in Huaxia is rising, if Zheng Jun you re-purchase land, whether it is to buy land or factory construction, the cost will definitely be a lot more. β
"Mr. Yamamoto, everyone understands people, so don't beat around the bush anymore. I've got a plan here that you can listen to. I can no longer collect the remaining 5% of the funds, but in addition to the ownership of the factory, Sony will provide me with all the equipment needed for the factory, and in addition, I will sign a contract with Sony to get the OEM rights for Sony Electronics for the next three years. β
Although Zheng Yan wants the factory, Zheng Yan values the OEM contract more, after all, the factory will start after it is built. As long as there is a three-year buffer time, it must be on the right track. In the next three years, Huaxia's electronic product industry will also develop slowly, and there will be no need to worry about orders by then.
"Zheng Jun, I can agree to your request for replacement, but the price you offer may not be enough to complete this transaction. The value of the factory is indeed as you said, but you don't know the price of the production equipment, and if Sony provides you with all the equipment, you may have to pay some money. As for the OEM contract, if you want the right price, I can also agree, after all, many of Sony's current electronic products are looking for someone to OEM, if Zheng Jun you are interested, of course we are willing to cooperate with you. β
Yamamoto Zheng actually wanted to agree, the price given by Zheng Yan was quite appropriate, and he didn't particularly attach importance to whether to add funds, just to find some balance.
Yamamoto is at a disadvantage in several negotiations with Zheng Yan, and each time he follows Zheng Yan's rhythm, and Yamamoto also wants to find some confidence to come back at the end of the cooperation.
"Mr. Yamamoto, as you said, I don't really know the exact price of the equipment. But one thing I do know is that you at Sony are making these devices themselves, and there must be some discounts for this kind of large-scale purchase. If Mr. Yamamoto can't accept the price I offer, then we will only talk about the problems of the factory area and the OEM matters, and I will try to find another manufacturer for the equipment. β
Zheng Yan's proposal was completely to save trouble, and at the end of this trip to Japan, Zheng Yan was ready to split the assets, and he really didn't want to worry about the site selection and construction of the factory.
But Zheng Yan will not suffer in vain, but it is not troublesome to contact the manufacturer of the equipment.
"Zheng Jun, you think this is good, after I go back today, I will first ask people to make a list of the equipment required according to the situation of that factory, and then we will look at the specific price. As for the OEM contract, we already have a cooperative company, and I need to go back and negotiate it so that I can sign the contract. β
Yamamoto knew in his heart that even if Zheng Yan got the factory, it would be impossible to start work in a short time. He understands that Zheng Yan is currently the only one that has cooperated with Sony, and it is very difficult to get OEM contracts from other manufacturers, after all, everyone is skeptical of this emerging company. So in terms of OEM prices, Yamamoto is confident that Zheng Yan will make concessions.
Zheng Yan also knows where his shortcomings are, this time it is not that Sony has asked for himself, and he has asked for Sony, but he doesn't want to push too hard.
"Mr. Yamamoto, I won't be in Japan for long, and as you know, I'm still a student, and my vacation is coming to an end. I don't want to delay for that, I can add an additional $10 million, and this is my final offer. If Sony doesn't accept it, I'll have to try it with another manufacturer. Zheng Yan said with a smile.
In the end, Yamamoto thought that he had finally won back a city, so he agreed and signed a contract with Zheng Yan directly.
Since there was still work to be done, after the contract was signed, Yamamoto left the hotel directly.