Chapter 194: CRT Factory
Tonight's protagonist is Lu Qintian, and after Li Xuan greeted him, he and his girlfriend found an inconspicuous corner and sat down.
"Didn't you say that the picture tube is the core component of Dongfang Electronics Company, why don't you control it yourself, but introduce Lu's Electronics to disperse the equity!" Zhong Chuhong asked with some puzzlement. Under the constant influence of Li Xuan's side, she no longer knows anything about business.
Li Xuan organized the language and explained to his girlfriend: "The only purpose of our construction of the factory is to realize the self-supply of important parts and components, and ensure that there will be no production in case of emergencies! For example, last year, Malaysia was hit by a catastrophic flood, and the factories of several well-known PCB manufacturers in Japan near Kuala Lumpur were severely affected, and the global price of PCB (printed circuit board) substrates rose and the supply was tight!
For example, a few months ago, the U.S. Congress passed a new bill that allows home phone users to purchase any telephone without the approval of the telephone company, which instantly activated the U.S. telephone sales market.
In the past, U.S. users had to buy telephones designated by telephone companies, and the main share of the market was firmly controlled by several large companies. But now that there are no restrictions, it has become a completely free and competitive market, which gives many small brands the opportunity to win on price. It is said that more than 50 electronics factories in Hong Kong have started to produce all kinds of household phones for export to the United States.
However, these electronics companies in Hong Kong can only do the simplest assembly process, and the core components are all imported, and European and American parts companies have increased their parts quotations since last month, and most of the profits have been grabbed by their upstream companies. In the same way, if our company can have some of its own production capacity. There is more room for maneuver when negotiating prices with upstream suppliers, and there is enough confidence to grind slowly with them!
CRTs are used a lot in both arcade machines and computer monitors. But it is not a core technology, and the key patents are in the hands of other companies. Therefore, we don't need to invest too much energy in this! Building and managing such a large electronics factory is a very energy-consuming matter!"
"Li Sheng, hello!" an old man with shimmering spirits walked over and greeted him warmly.
"Secretary Yao, hello!" Li Xuan recognized at a glance the old man in front of him who was full of anger and red light. He is Yao Geng, chairman of China Merchants and secretary of the Working Committee of Shekou Industrial Zone.
The CRT factory, which is a joint venture between Dongfang Electronics, RCA and Lu's Electronics, is not a small factory, but a series of complete sets of factories including color tube factory, color tube glass factory, phosphor factory, etc., with a total investment of up to 200 million Hong Kong dollars. Hong Kong is unlikely to provide cheap industrial land for such a large-scale electronics factory, so the location of the new factory will be on the mainland.
Lu's Electronics is one of the investors. On behalf of the joint venture, we have started preliminary communication with the mainland government. Shekou Industrial Park is one of the candidate sites for the construction of the new plant. If the CRT factory is located in Shekou, it is very likely to become the largest foreign investment in Shekou Industrial Zone since its establishment in 1979, and the Industrial Zone Management Committee is naturally very enthusiastic about it.
Established earlier than the Deep Sea Special Zone, Shekou Industrial Park is China's first export-oriented economic development zone wholly owned by Hong Kong's China Merchants Group. The predecessor of China Merchants in Hong Kong was Li Hongzhang's government-supervised commercial enterprise founded in 1873 during the Westernization Movement - China Merchants Steamship. After the founding of the People's Republic of China, China Merchants took over its property in mainland China by the people's government, and the employees who moved to Hong Kong declared an uprising in 1950. After the uprising, China Merchants continued to operate and develop in Hong Kong, and has now become one of the three major Chinese-funded enterprises in Hong Kong by the central government of the mainland.
Since 1950, China Merchants Hong Kong has been operating in accordance with Hong Kong's business rules. It has gradually integrated into the Hong Kong economic system and has become a Chinese-funded company widely recognized by the Hong Kong business community. The upfront funds required by China Merchants for the development of Shekou Industrial Zone were all borrowed by Hong Kong banks such as Bank of China (Hong Kong), HSBC and Hang Seng.
However, in the early days of the establishment of Shekou Industrial Zone, there was always a lot of thunder and little rain. Wave after wave of Hong Kong businessmen from the Central Terminal. Boarding the reception ferry of China Merchants to visit the Shekou Peninsula across the sea from Yuen Long in the New Territories, but after a turn back to Hong Kong, it was quiet.
Until the establishment of the deep-sea special zone, the pace of reform and opening up in the mainland was unwavering. Hong Kong businessmen are a little more assured about the sustainability of mainland policies, and some bold small enterprises have successively invested in Shekou to build factories. In the first nine months of this year, there were more than 50 foreign-funded enterprises in Shekou Industrial Zone. Most of them are Hong Kong bosses. The first phase of the industrial site in the development zone has basically been fully rented, and the work of three links and one level of the second phase of the land is being carried out intensively.
However, most of the factories that go to Shekou Industrial Zone for development are small factories. The quality of the enterprise is not high. Now there is a sudden investment of up to 200 million Hong Kong dollars intended to settle in Shekou, which can be imagined as a shock to the management committee. The investment in this factory is worth the total investment of nearly 100 factories introduced since the establishment of the development zone.
"Although we Dongfang Electronics are the main investors of the new factory, we are mainly responsible for financial supervision, and Mr. Lu Qintian will be responsible for the specific preparation work!" Li Xuan said with a smile.
Lu Qintian has already begun to negotiate with the mainland, although the first choice of the joint venture factory is Shekou Development Zone, but the negotiation should also pay attention to strategy, and it is impossible to directly expose his hole cards. Therefore, Lu's Electronics has also been communicating frequently with the Shangbu Industrial Zone in the Deep Sea Special Zone recently.
Although the Administrative Committee of Shekou Industrial Zone is under the jurisdiction of the SAR Government, the Industrial Zone is mainly developed by the Hong Kong Merchants Bureau, and is administratively more independent than the rest of the SAR. The Special Economic Zone has just set aside an area near Shangbu as a development zone focusing on the development of the electronics industry, and a number of large electronic enterprises under the Ministry of Electronics Industry have already settled in the Special Economic Zone.
"Compared with the other two industrial zones in the Special Economic Zone, our Shekou Industrial Zone undoubtedly has more advantages in terms of infrastructure construction, and the policies and services we can provide to foreign enterprises are also more flexible! If Li Sheng has time, he might as well cross the sea to personally investigate on the spot!" Yao Geng added.
In the face of the temptation of a huge investment of up to 200 million Hong Kong dollars, the friendship of any fraternal unit cannot be taken care of. Shangbu Industrial Zone is likely to be Shekou's most important competitor in the fight for this large-scale project, although Yao Geng will not deliberately belittle the opponent, but will try to show his advantages as much as possible.
Recently, the most important task for everyone in Shekou Development Zone is to win this picture tube project, and relying on the convenience of China Merchants Hong Kong, Yao Geng has collected more detailed information than the Shangbu Industrial Zone Management Committee and the SAR government. Although the new project is now being prepared by Lu's Electronics, the actual leadership is in the hands of the young man in front of him.
Li Xuan had already communicated with Lu Qintian, and he was responsible for the preparation of the new factory, so there was no need to go back on his word and interfere too much. Dongfang Electronics' personnel stationed in the joint venture factory will be mainly responsible for finance and marketing, as long as they can master these two aspects, Li Xuan will have the confidence to control the leading power of the project.
So he simply changed the topic: "The new factory we are preparing to build this time is actually far inferior to the construction of a large-scale color picture tube factory in Weicheng, Western Shaanxi Province, in the mainland! Only with the strong leadership of the government can we establish a complete and perfect industrial system in one go!"
Yao Geng immediately understood the project that Li Xuan was referring to, nodded and said: "The investment in the 4400 project is relatively large, it is said that from Japanese companies such as Hitachi, Asahi Glass, and Datu, the foreign exchange spent on purchasing a full set of new technology and equipment is more than 100 million US dollars! Li Sheng, your Dongfang Electronics Company's products sell well in Europe and the United States, naturally there is no need to worry about the problem of foreign exchange, raw materials can also be purchased globally, and many secondary processes do not need to build their own factories!"
However, the 4400 project is different, its main responsibility is to solve the problem of shortage of picture tubes in China, and a very important purpose of building a factory is to reduce the foreign exchange index of products. At present, most of the domestic picture tube factories can only import parts from abroad for assembly, and a color tube costs more than 50 US dollars. After the completion of the Weicheng color tube factory, it is said that it can be reduced to 12 US dollars, which can save more than 50 million US dollars of foreign exchange for the country to purchase picture tubes every year!"
Li Xuan couldn't help but look at the old man in front of him a little impressed, it seemed that he had done enough homework and preparation for the CRT industry. And the purpose of his understanding of this information is naturally to aim at the joint venture plant project. Otherwise, even if the picture tube factory in the far northwest invests a lot, it has nothing to do with him, the secretary of the Shekou Industrial Zone.
The total investment of Weicheng Color Tube Factory in West Shaanxi Province is as high as 700 million yuan, with an annual output of 1 million color picture tubes of various sizes. The total investment of the first phase of the picture tube factory that Li Xuan plans to build is only 200 million Hong Kong dollars, but the annual output is as high as 1.5 million, including 1.2 million color tubes. It's not that Li Xuan has the magic power to do big things with little money, but he doesn't need to build a complete industrial system like Weicheng Color Tube Factory.
"It is very difficult to establish a complete industrial system, and neither RCA nor Hitachi in Finland have succeeded in the past! Not long ago, Mr. Hadi, a technical expert from RCA, was invited to visit Wèn in Western Shaanxi, and he spoke very highly of the Weicheng project.
Mr. Hardy will also be the chief technical representative of RCA in the future, responsible for the technical support for the preparation of our new factory, and he hopes to have more exchanges with his domestic counterparts in Weicheng to absorb their excellent experience, and he will need more support from the mainland government when the time comes!" Li Xuan said. (To be continued......)