Chapter 660: Expansion of the Shipping Industry

Making money is a technology, and spending money is an art.

The people who spend the most money in the world, and at the same time the most should learn this art, are government agencies. They often do things that cost 10,000 yuan to do 1,000 yuan, and if anyone objects, they spend another 10,000 yuan to investigate.

In order to make money for themselves, unconscionable bankers can always come up with a way to do 10,000 yuan for 1,000 yuan, and sometimes they don't even want to spend that 1,000 yuan.

For most people, it is difficult to do something for 10,000 yuan for 1,000 yuan, but it is sometimes easier to do something that can only be done for 100 million yuan with 10 million yuan.

Sioux City had many options for spending his money, but in the end, he decided to use it for investment companies and Dahua Labs.

The move to expand production, which Huo Chang and others strongly advocated, was vetoed by Su Cheng without hesitation.

It is true that the expansion of production now can indeed earn a lot of profits for the company, that is, from the perspective of future generations, pure large-scale industrial production can still make money until 2008, and as long as it survives the cold winter of the financial crisis, the surviving factories will not be more difficult than in previous years.

With the rate of return of Dahua Industrial's factories, investment in production can earn at least 20% of the profit every year, and its capacity is very large, and an investment of 10 billion yuan or 50 billion yuan will not encounter a bottleneck.

However, considering the human factor, Sioux City still rejected the profits and influence that would come with expansion.

The labor cost in 94 years is very cheap, but after 20 years, when the demographic dividend gradually disappears. After the labor cost of workers rises, what should Dahua Industrial, which has expanded to hundreds of thousands of people, do?

A young worker who was around 20 years old in '94 was 40 years old in 2014. In the event of a reduction in production, large-scale layoffs will not only cause unease for businesses, but also the breakup of countless families.

Sioux City also did not have the confidence to lead hundreds of thousands of people through the layers of sniping in the future. Because as a human being, he will not have a stable logical demand curve like a machine, whether it is a worker or a company employee. There will always be demands for better treatment and benefits, and it is not difficult to do that during economic upswings. But when the economy is in a downturn, it becomes difficult to maintain the needs of a large number of people.

GM USA is a good example. They were once the largest corporation in the world, with a market capitalization of hundreds of billions of dollars, more than the gross national product of some small countries. However. After 100 years, GM Group is still the most competitive player in the international market. However, its vast number of retired workers, especially those with high salaries, still make the entire group unable to make ends meet.

The same problem was with China's state-owned enterprises in the '90s, when the workers who came into the factories in the '50s and '60s began to retire en masse, and even the best monopolies could not support this pure consumption.

A similar problem occurred in Japan, where they lost a decade when they rejoiced that their company was always at the service of all its members. And the lost twenty years slowly lifted the curtain, finally. Large enterprises that have not closed down are no longer afraid to continue the previous system of annual merit, and have instead begun to hire dispatch workers on a large scale, which is tantamount to giving up the protection of workers.

This unpredictable and ever-expanding artificial risk is beyond even a single country can afford, and Sioux City is naturally very cautious. He is well aware that his management level is average, so he always tries his best to give full play to his ability to avoid risks.

Hiring fewer employees, hiring better employees, and constantly training their own employees is also a means for companies to hedge against risk.

Even when the economic environment is not good, fewer and better employees will not become a huge burden, and at worst, you can also learn from enterprises like China Shipbuilding Industry to do outsourcing. In contrast, it is not easy for state-owned enterprises with a large number of mining groups, light industry groups and other countries with weak technical levels to rise when life is not good.

Because of this, it is only Dahua Shipbuilding that has always maintained its expansion.

Although the shipbuilding industry will suffer a great depression after 07 years, LNG ships until 2014, are still the crown jewel of the civil shipbuilding industry, full of orders, as far as the situation in China is concerned, it is no problem to say that it is the crown jewel of China's shipbuilding industry.

Its gold content is no less than that of an aircraft carrier.

If needed, shipyards that can build LNG ships can basically be converted into shipyards that build aircraft carriers, such as the French Atlantic shipyard, which sells technology to South Korea's Hyundai Atlantic, which is both the patent holder of thin-film LNG ships and the shipyard that produces the aircraft carrier Charles de Gaulle.

Of course, from an economic point of view, aircraft carriers are not a very cost-effective type of production ship due to their long construction cycle, high cost of construction, many restrictions, and a small total number of orders. If the French Atlantic shipyard wants to eat with the aircraft carrier order, it will not be able to hold on to the speed of equipment renewal on the French side for even five years. Accumulating technology from civilian shipyards and building them on a large scale when needed is almost a common means of modern countries.

Otherwise, in the event of a long period of peace, all companies specializing in arms will go out of business. In these years, there are few tanks used in regional conflicts, and products such as aircraft carriers or destroyers are really better than selling tea eggs.

LNG ships are much happier.

The 90s can be said to be the development period of the LNG industry, and everyone is desperately building related industries and accumulating related technologies. However, the world's energy demand is too huge, let alone more than a decade of hard work, even in another 20 years, the demand for liquefied natural gas has not been fully released.

Under the guidance of the so-called green economy, LNG will replace fuel oil at least in the industrial energy sector.

This means that more than half of today's oil tankers will be turned into LNG carriers.

Dahua Shipbuilding's LNG orders are also accumulating.

Especially after Sioux City returned to China with a full load, shipowners everywhere knew that Dahua Shipbuilding was at least rich in liquidated damages, so they invested in the orders of LNG ships of the shipping group.

Yan Xuecan of Dahua Shipbuilding is also full of enthusiasm. A report was immediately submitted to Sioux City, requesting the purchase of a large number of machines.

A behemoth like an LNG ship is difficult to build. Just look at it as a horizontal transformer, especially the welding with the largest workload, with a total length of more than 130 kilometers, that is, with the operation method of small factories in towns and towns, the welding length of 130 kilometers can also exhaust the people of a factory, and on the strict LNG ship, the place where the welding is good is usually welded by welding robots. The rest of the places where the welding robot is not good to play are to be done by hundreds of G certificate welders. That's it, it's going to take a year or two to complete. The working hours are long, and there are so many requirements that I can write a cabinet manual.

As for the more than 50,000 wooden insulated boxes of different specifications down to the silk, they can make ordinary factories desperate.

There is no extremely high level of product control. Light is a wooden box. It takes an ordinary shipyard a few years to consume energy.

Unlike bulk carriers, which are large and coarse, LNG ships are loaded with liquefied natural gas, which always maintains a low temperature of minus 160 degrees.

And in order to improve the efficiency of LNG ship construction, a large number of professional machinery is invented and manufactured every year. They don't have to be used, but if you use them, the speed increases. The quality of the ship is more guaranteed. Correspondingly, the higher the cost.

Once upon a time. Although Yan Xuecan has accumulated several orders for LNG ships worth a total of 2 billion US dollars, he still does not dare to spend huge sums of money to purchase a large number of machinery. Because order fulfillment and payment are phased, the cost of advance purchases is not.

When Su Cheng came back from London with a large amount of money, Yan Xuecan couldn't hold back anymore, and stayed at the group headquarters almost every day.

His qualifications are relatively shallow, and he can't directly find the money for a gag in Sioux City like Jichai's executives.

Yan Xuecan went around in a circle and found Rong Shangguo, the general manager of China Shipbuilding Heavy Industry.

Today's China Shipbuilding Industry Co., Ltd. is one of the affiliated companies of Dahua Industry because it is a quarter of the shares held by Dahua Industrial. General Manager Rong Shangguo also often comes to the headquarters of Dahua Industry.

And because of his status as a state-owned enterprise, Su Cheng has always been very polite to Rong Shangguo.

With Rong Shangguo's appearance, Yan Xuecan's report could be sent to Su Cheng in a better posture, and within a few days, someone from the procurement committee contacted Yan Xuecan.

At this time, Su Cheng was still busy flying in the capital, but he handed over this kind of thing to the following.

It wasn't until a month later that Sioux City had time to inspect the factories one by one.

And his first target was Dahua Shipbuilding.

As a shipping company that was once a joint venture, then privatized as a sole proprietorship, and then acquired a foreign enterprise, Dahua Shipbuilding still has some Western enterprise culture, which is quite special in several branches of Dahua Shipbuilding.

This is also related to the fact that many employees of Dahua Shipbuilding have received training from Western companies, especially ordinary workers, who have to go abroad for half a year to a year of training because of strict operating requirements, so when they stand in the factory area, they can immediately feel a completely different atmosphere from Chinese state-owned enterprises.

The hurried workers, the smiling and confident employees, and the large number of mechanized operations all overwhelmed suppliers who had never seen this scene.

Even Rong Shangguo, in fact, rarely has the opportunity to come to Dahua Shipbuilding.

This time, taking advantage of the inspection work in Sioux City, Rong Shangguo simply pulled a high-level member of China Shipbuilding Industry Co., Ltd., and accompanied him in the name of it, but it was actually an observation and comparison.

After all, CSIC will not be satisfied with being a sectional factory or a general section factory, they also want to do the final assembly, so as to eat the biggest cake.

Especially seeing that Yan Xuecan can still pick orders, this stimulates them even more.

Yan Xuecan waited excitedly at the gate of the shipyard, surrounded by Li Cang, a shipbuilding expert who had recently decided to join Dahua Industrial full-time.

And behind him, the secretary held a thick layer of ship information.

The first batch of LNG ships of Dahua Industrial has been delivered, carried by Dahua Marine Shipping Company, and the results are good, and the LNG ships they are building now are orders won by Sioux City at the Industrial Equipment Exhibition in France, and in the middle, Dahua Shipbuilding has also completed orders for dozens of ordinary ships, including orders from Singapore Shipping Group, which participated in the bidding with China Shipbuilding Industry Co., Ltd.

However, Yan Xuecan did not introduce the construction of ordinary ships. Su Cheng's time is limited, and Yan Xuecan doesn't want to use these boring projects to weaken the development focus of Dahua Shipbuilding.

Because of their participation in related projects, the people of CSIC waited with their ears pricked up to listen to the introduction, and they were quite puzzled.

After all, in their opinion, cargo ships of more than 10,000 tons can already be used to talk about it, and how can these cargo ships of tens of thousands of tons or even hundreds of thousands of tons not be introduced.

……