Chapter 743: Preferential Conditions
Qin Hai's plan was very favorable, and there were almost no terms that made it difficult for Lu Dashuang to accept.
First of all, Qin Hai was willing to come forward to raise a loan of 30 million yuan for Lu Dashuang and others to purchase a complete set of equipment including smelting, continuous casting, and continuous rolling. The same suggestion had been proposed to them by Qin Hai a month ago, but no one responded, and now, in the face of the country's firm determination to govern Xiaogang, Lu Dashuang and his colleagues had to consider choosing this way out.
Qin Hai promised that the existing equipment of each small steel mill could be purchased by him. Of course, since these equipment are backward equipment that the state forcibly requires to be eliminated, the purchase price is to be discounted. For Lu Dashuang and others, even such a discounted price is extremely attractive. Previously, the biggest obstacle they faced when considering upgrading equipment was that they couldn't dispose of the original equipment, and now that someone is willing to pay for it, they don't have to worry about it.
This practice is a common "trade-in" strategy in the consumer durables industry. The service life of household appliances, mobile phones, and cars in some consumer homes can be as high as more than 20 years, but the replacement speed of these products is very fast. In order to encourage consumers to eliminate old goods and expand the sales of new products, many manufacturers will launch a trade-in strategy, buying old home appliances at a relatively low price, so that they do not have the burden of disposing of old goods.
The purpose of trade-in the equipment of small steel mills is not to promote new equipment, but to promote the withdrawal of old equipment that does not meet the current environmental protection and energy-saving requirements from the market as soon as possible. This part of the money comes from the state's environmental investment, and this method of reducing pollution by eliminating highly polluting equipment is a way to cure the root cause of pollution, rather than spending a lot of money to clean up after the pollution has occurred.
Qin Hai provides this assistance to small steel mills. Not without conditions. His condition is that all companies receiving such help must sign a strategic alliance agreement with Daqin Group, which stipulates that these enterprises will be subject to Daqin Group's management and be consistent with Daqin Group in terms of raw material procurement and product pricing.
There are thousands of small iron and steel enterprises in the country, and in the past, these enterprises were backward in technology and poor in product quality. Unable to compete with large steel mills, it can only occupy the low-end steel market, and the competition threat to large steel mills is not great. If the transformation is carried out according to Qin Hai's plan, these small steel enterprises will merge into hundreds of small and medium-sized steel mills with a certain scale and technical level, and become strong opponents of large steel mills. If these small and medium-sized steel mills are not restricted, they can easily fall into vicious competition, and eventually the entire steel industry will be burdened.
There is another reason, which Qin Hai did not explain to Lu Dashuang. He knows that the next 10 years will be a period of rapid progress in China's infrastructure. Steel demand will more than double from the current level. China is a country with a shortage of iron ore resources, and to further expand steel production, it will inevitably need to rely on imported iron ore to provide support. In real history, foreign iron ore giants saw this situation and continued to raise iron ore prices, forcing China to accept. Because the domestic iron and steel companies are fighting their own battles, they cannot form an alliance to negotiate with the international iron ore giants, and the result is broken by the other party. Ended up incurring hundreds of billions of dollars in losses.
Qin Hai's governance of small iron and steel this time has the motivation to integrate the entire industry. Daqin Group's production capacity. Coupled with the production capacity of all small steel enterprises, it is enough to occupy half of China's steel market. If small iron and steel companies can advance and retreat together with Daqin Group, Qinhai will have the capital to negotiate with international iron ore giants. For every $1 drop in iron ore prices, Daqin Group can save tens of millions of dollars in the cost of purchasing raw materials, and this account only needs to be calculated a little to know that the current effort is completely worth the money.
Strategic alliances for this kind of thing. It's not stable enough on its own. Alliances will be fragile in the face of interests. If Qin Hai asks the small businesses to form an alliance with him out of thin air, they may regret and back down when they need these small businesses to take risks. Qin Hai went on a killing spree in Xingchuan County this time, forcing various small steel mills to the brink of bankruptcy. It is a warning to everyone, he wants to let these small bosses know that he has strong enough energy, if any company dares to drop the chain at a critical time in the future, then it must be prepared to withstand the storm from Qin Hai.
As the old saying goes, if you don't fight, you can't make a deal, and when you do things in the yamen, there is even a saying that you will fight "kill the stick" first, in fact, it is all for better cooperation in the future, so that the other party knows their strength in advance, and the punishment they may suffer. Everything Qin Hai did in the previous section was to kill Lu Dashuang and other small bosses, judging from the current results, the effect is very significant, at least the Lu Dashuang in front of him has become very docile.
Qin Hai gave a detailed introduction to Lu Dashuang of the corresponding terms, Lu Dashuang pondered for a moment, nodded, and said: "Chairman Qin's conditions are actually for our sake, how can we not accept it." However, I don't care about this matter alone, and I have to discuss it with other factory directors. ”
"Then please ask Boss Lu to summon it." Qin Hai said.
Lu Dashuang found the bosses of other small steel factories in Dongdaogou Village, and introduced Qin Hai's true identity and the cooperation plan proposed by Qin Hai to them. At first glance, when they heard this, the reaction of all the small bosses was the same as Lu Dashuang, full of shock. Of course, there are also people who have suspicions about Qin Hai because of the seizure of steel.
"Since Chairman Qin wants to cooperate with us, why do you want to go around in such a big circle? How many of my truckloads of steel have been deducted by you, what does this mean? In fact, you said that you had this plan, so we don't have to be so afraid. ”
It was Lu Quanlin, the director of another steel mill, who led the last time he gathered villagers to storm the checkpoint. He was also grabbed and handcuffed by the soldiers at the checkpoint for leading the way into the security zone. Thinking of the horror and humiliation at that time, he felt a little angry.
Hearing this, Qin Hai smiled slightly and said, "Boss Lu said something wrong, it's not because I want to cooperate with you that I seized your steel; It's that I don't want to see you go bankrupt because of the seizure of steel, so I'm here to propose a cooperation plan to you. Boss Lu was a little wronged a few days ago, but I'm afraid it's not to blame me for this matter, organizing villagers to march and make trouble, trying to use the method of mass incidents to force the government to make concessions, which is already suspected of violating the law. The working group didn't embarrass you, but only restrained it for a short time, and casually asked you to leave, Boss Lu should know what to do. ”
Lu Quanlin said angrily: "Chairman Qin, I know that you are the big boss, and there are central leaders who do it for you as a backstage, but what you do is too deceitful. I, Lu Quanlin, am also a person who wants face, I won't be slapped in the face and have to pay for any smiles. ”
"Really?" Qin Hai was still smiling, he looked at the other little bosses and asked, "Who else thinks the same as Boss Lu Quanlin?" If I feel that I have suffered a loss by accepting these conditions, I will not force it. ”
"I ......" There was a little boss who had a good relationship with Lu Quanlin, and his body moved, as if he wanted to say something.
"What are you, you stupid!" The companion next to him grabbed him.
"What for?" The little boss asked his companion dissatisfied.
The companion glared at him, put his mouth to his ear, and whispered: "Lu Quanlin is looking for death, you still plan to die with him, right?" Think about it, now we have no other way out than to do what Chairman Qin said? ”
"But he's not doing things properly." The little boss said.
The companion sneered: "You just pull it down, we are people in this room, who is doing things authentically?" What kind of steel is that you meow for, do you dare to use it to build your own house? Like our group, people didn't die, and they found a way out for us, so you can miss others for the rest of your life. If you really meet someone who is also capable but doesn't care about our life or death, don't you have to endure it? ”
A room full of people have almost no ideas, and after witnessing the entire governance action, everyone has a different understanding of Qin Hai. Others may think that Qin Hai is just a successful company, with a more flexible brain and a little more connections, and that's it. And these little bosses know that this guy is a lone star, and his own small body is boarded, so it's better not to compete with him.
Seeing that no one came forward, Qin Hai turned his face to Lu Quanlin and said coldly: "Boss Lu, you still have a choice now." If you are willing to work with everyone to raise funds to build a steel mill that meets the scale requirements and get out of trouble together, then stay and discuss an operating mechanism. If you feel that you have suffered a loss in this matter and disdain to be with me Qin Hai, then you can please. ”
"I ......" Lu Quanlin hesitated, he already regretted it in his heart, but his innate temper overwhelmed his reason, he stomped his foot and said, "I won't be a pug for you!" ”
With that, he stood up and strode out of the venue. The others looked at his back and were silent. Lu Quanlin's words can be regarded as firing a map cannon, and all those who are willing to cooperate with Qin Hai are said to be pugs. Everyone couldn't accept this statement, but they all had a feeling of disapproval in their hearts: with Qin Hai's net worth, there are more people who are willing to be a pug for him, and not everyone has this qualification. If you want to save face at such a time, you will inevitably regret it in the end. (To be continued......)