What Song Hongxuan could think of, Qin Hai could naturally think of. The means he proposed to break through the barriers of the international market is very simple and crude, that is, to reduce prices.

In the international market, the price of one ton of wire rod is 280 US dollars, which is equivalent to 1,500 yuan; In the domestic market, the price of one ton of wire rod is more than 2,000 yuan, which is much higher than the price in the international market. Obviously, if it is sold abroad at a domestic price, it will definitely be unpopular.

Qin Hai's plan is to sell at a lower price than the international market, the wire rod in the international market is 280 US dollars, if Daqin Group sells it to 260 US dollars, will it be able to sell it? High-end steel Chinese companies dare not ask, ordinary wire rod, bar, what can not be done? This kind of road goods, as long as the price is low, international buyers must flock to the world, the future Chinese manufacturing raging the world, the biggest trick is not cheap?

As for what kind of dumping is to sell at a price lower than the place of origin, it is only possible if someone initiates an anti-dumping investigation. The world's annual steel output is 700 million tons, and China only accounts for one-tenth, which is not enough to threaten Western manufacturers. At that time, Western countries were eager for developing countries to dump, because it meant that they could plunder resources from developing countries at a lower cost.

"In this way, we are almost losing money and making money."

After listening to Qin Hai's plan, Song Hongxuan thought about it in his heart and said so. The raw materials of the Nord Stream No. 2 Steel Plant and the Cenzhou No. 2 Steel Plant are all from overseas, and the cost of raw materials, freight, man-hours, energy consumption, etc., is almost more than 200 US dollars per ton of wire rod. If it is sold abroad at a price of 260 US dollars, the cost control is good, and it can barely be guaranteed, and the control is not good. It's an absolute loss.

"This should be regarded as a loss of production capacity." Qin Hai said, "If we are careful in our calculations, we may not be able to lose too much money, and this method should be more cost-effective than using liquidity to build reserves." ”

There is such a thing as production capacity, which cannot be put aside and idle after it has been formed. There are many things that need to be sustained through guò stable dìng production. Otherwise, it will be difficult to form production capacity in a hurry. For example, Daqin Iron and Steel Company's raw materials come from Australia, and in order to ensure the stable supply of raw materials, it is necessary to continue production, otherwise people may not be able to provide raw materials from mines temporarily. In addition, the skilled workers needed to provide a production capacity of 5 million tons of steel also need to be cultivated and maintained by the production process, and these workers cannot be allowed to rest at home on a regular basis. Recruit them when they need to.

Ning Zhongying and Song Hongxuan are both people who do business management, and Qin Hai simply mentioned it, and they understood the truth. Ning Zhongying turned his head to look at Song Hongxuan and asked, "Xiao Song, according to Xiao Qin's approach, can our steel company guarantee breakeven, or even a slight surplus?" ”

Song Hongxuan nervously calculated on his notebook and calculated for a while. Cai nodded and said, "If we work hard, it will not be a problem to ensure breakeven." A little bit of savings...... It depends on the situation in the domestic market. ”

These steel mills under Daqin Group have always been the "cash cows" of the group, although the profit margin is not high enough, but the output is large and the output value is very high, so how can they create a profit of one or two billion yuan a year. Of course. These profits are generated in the domestic market. According to Qin Hai's plan, the group immediately started the expansion plan of the steel company, and then took the excess production capacity to the international market to digest, seize the market with low prices, and maintain daily production. It's basically buying and selling at a loss. Domestic profits, foreign losses, after careful calculation, Song Hongxuan felt that he could basically achieve breakeven.

Using domestic profits to subsidize losses abroad and maintain the existing production capacity as a strategic reserve that Wang Hongsheng needs, this is the plan that Qin Hai revealed to Wang Hongsheng. When talking to Wang Hongsheng, he did not calculate the loss figure in detail, but he believed that even if he lost money, the amount was within the range he could bear.

"It's worth doing." Ning Zhongying nodded categorically and said, "After all, we are Chinese enterprises, whether they are private enterprises or state-owned enterprises, when the country needs it, we should do our part." Not to mention that Xiao Song can still maintain breakeven, even if it is a slight loss, as long as we can afford it, it is worth doing, this is a matter of merit. ”

"The old factory director's consciousness is high." Qin Hai said with a smile, "My starting point is not as noble as the old factory director, I just think that if I do the Planning Commission a favor at this time, I will be able to get the rewards of the Planning Commission for anything in the future." No matter how you calculate this business, you can't lose money, so I dared to say yes. ”

"Of course I know that's the case." Ning Zhongying glared and said, "But when we talk to the Planning Commission, can we say that?" We have to do what I just said, saying that we would rather lose our own interests than take into account the overall situation of the country, understand? ”

"Understood." Qin Hai hurriedly responded, in fact, how could he not understand the importance of singing a high note, but Ning Zhongying taught him that he still had to pretend to be sincere and fearful and accept it with an open heart, which was a respect for the old man.

Song Hongxuan asked, "Xiao Qin, when will this matter start?" ”

Qin Haidao: "We have to start soon." After a while, we went to Chen Hongcheng together and told him to go to Europe to purchase second-hand steel equipment immediately. I estimate that this negotiation, disassembly, transportation, and finally installation in Cenzhou will be completed, and a year will pass. We want to form a production capacity of 5 million tons, and the time is still very tight. ”

"Another question comes to mind." Song Hongxuan said, "We formed such a large production capacity, mainly to cope with the market fluctuations that occurred during the price reform. When the price reform is completed, what will happen to our surplus capacity? ”

"Haha, you can rest assured." Qin Hai said optimistically, "after the country liberalizes the unified distribution of means of production, the economy will definitely have a big growth, and then the demand for steel in the market will double up, and the production capacity of 5 million tons is just a drop in the bucket for the market." ”

"Are you convinced?" Song Hongxuan's eyes flashed, and he looked at Qin Hai and asked. As the general manager of a steel company, he certainly wants the company's production capacity to be as large as possible.

"I'm sure." Qin Hai replied firmly. This is the self-confidence of the traverser, he knows that when the real estate industry develops in the country, the country's annual steel demand can reach 600 million tons, and 5 million tons can be counted.

Song Hongxuan said: "If that's the case, then why don't we let Chen Hongcheng import more equipment?" For example, instead of 5 million tons, but 10 million tons, what do you think? ”

"You are really greedy enough, how much iron ore do you have to consume a year with a production capacity of 10 million tons? Can the Port of Cenzhou afford it? Qin Hai scolded with a smile.

Song Hongxuan said: "Why does it have to be limited to Cenzhou Port? We can go to Hongyuan and Haidong to build new factories. These places are coastal provinces, and iron ore can be reached directly by sea, and the cost is much lower than that of shipping to Cenzhou, which is also conducive to controlling the ex-factory price of zhì steel. In fact, I have always wanted to move the steel industry to these provinces, but I can't find the opportunity. Now we are helping the State Planning Commission to do things, and it is not too much to let the Planning Commission help us coordinate a few pieces of industrial land, right? ”

"You're too dark!" Qin Hai jokingly said, "Is this considered a robbery while the fire is burning?" ”

Ning Zhongying interjected on the side: "Even if it is to rob while the fire is burning, I think Director Wang is also willing, right?" For the State Planning Commission, a piece of land is just a matter of issuing a document. In exchange, we have set aside millions of tons of steel production capacity for the Planning Commission, and Director Wang will definitely be able to calculate this account clearly. ”

"It's up to me." Qin Hai said in a big way, "Old Song, you immediately make a plan, see what equipment needs to be purchased, how large, and where is your ideal factory location, list a few alternatives, and then we will start to implement it." On the Planning Commission's side, I went to Director Wang, and if he dared not give me land, I would not admit the account of the 10 million tons of steel. ”

Hearing Qin Hai's voice of gritting his teeth, Ning Zhongying and Song Hongxuan both laughed dumbly. They knew that Wang Hongsheng would definitely not embarrass Qin Hai in this matter, and Qin Hai put on a desperate appearance, which was really redundant. However, in addition to the long-term vision and mysterious technology, the young chairman has no advantages in specific business management, so let him do the work of coordinating high-level relations, which can be regarded as making the best use of his talents. As for the purchase of equipment, the construction of factories and the maintenance of daily production, it is more reassuring to hand over to Miao Lei than to Qin Hai.

In the next two days, the group held a series of meetings to arrange the work tasks of each branch in the coming period and negotiate the cooperation between different companies. The expansion of the steel company's capacity was also arranged at the meeting.

Among them, the Red Sea Company, which is responsible for overseas affairs, has the heaviest task. Not only did the company have to source used steel equipment in the European market, but it also had to contact Australian mining companies to determine how to increase raw material imports, and in addition, it had to find international steel sellers to market Chinese steel to them. Chen Hongcheng received these tasks, and instead of complaining, he was very happy. Because the more tasks there are, the more important the Red Sea company is to the group, which he would like to see.

Many people have questioned the large-scale expansion of steel production capacity at the beginning of the group's establishment, worrying that the excessive production capacity cannot be digested and the equipment is idle. In this regard, Qin Hai, Ning Zhongying and others did not explain too much, only said that it was an important cooperation between the group and national ministries and commissions, but did not disclose the specific content. The matter of price reform is still a state secret, and it is not appropriate to disclose it too early. (To be continued......)