Chapter 49 Turnkey Projects

Hua Yaoguo was working with Hu Yuehua in a rented small office at this time, observing the hot sales scene, and providing some help by the way, at this time, they couldn't leave.

Hua Hongxing went for a while, then ran back, and then, Hua Hongxing led Fu Xin and Mulenser to Hua Yaoguo's office, and Hu Yuehua had already left at this time.

Diplomacy pays attention to equality, because Mulensir's level is not enough, Fu Xin and Hua Hongxing did not tell Mulensir the specific identity of Hua Yaoguo, but only told him that Hua Yaoguo is the leader of Fu Xin, and he is a person who can call the shots and make decisions.

In this regard, Mulensel did not have the slightest displeasure, on the contrary, he was also very happy, and he was very happy to meet someone with a higher status than Fu Xin, a Nobel laureate in physics, and he felt a sense of accomplishment.

In Mulensler's mind, the status of the Nobel Prize winner in physics must be very high, and the status of being the leader of the Nobel Prize winner in physics is even more terrifying! He, a small industrial minister from the Nusby tribe in South Sudan, can he have a low sense of accomplishment when he can meet the top leaders of a big country like China?

"Comrade Fu Xin, putting aside political issues, from the perspective of your technology, is it possible for them to engage in oil refining equipment?" After Hua Yaoguo listened to the cause and effect of the whole thing, he asked Fu Xin in a low voice. Hua Yaoguo speaks Chinese, but there is no need to worry that Murenser can understand. Although Fu Xin is not in the petrochemical industry, he Hua Yaoguo believes that Fu Xin can give an answer, and Fu Xin is an all-round wizard in his eyes!

Really. Fu Xin did not disappoint Hua Yaoguo, only to see Fu Xin say in Chinese: "Minister Hua, although I am not engaged in petrochemical industry, nor petroleum equipment, even if I win this project, I must cooperate with other domestic manufacturers to produce when I return to China, but I still have some understanding of petrochemical industry." ”

"Technically, it's no problem at all. Domestic petrochemical industry. Although internationally it belongs to the point of crane tail. But compared to these African countries, we are more than one step ahead of them! ”

"We can provide them with 500,000 tons of small oil refining equipment, which can be used to produce gasoline and diesel at the initial stage. It's too difficult, that's to make it difficult for them, and you should also know the level of education in Africa. South Sudan in particular is also a hard-hit area where three-quarters of the adult population is illiterate. Even if it is the production of gasoline and diesel. It is estimated that we will need to train them for a long time. So initially. It is enough to be able to meet the production of gasoline and diesel! ”

"In the future, if needed, it can be expanded to add lubricating oils, liquefied gas, aromatics and other products. Engage in petrochemical industry, and even engage in ethylene projects. In addition to ethylene and other equipment, our domestic technology has been very mature. Even if it is ethylene, by the time the other party starts the ethylene project, our domestic technology will definitely be mature, I dare to conclude this! ”

"I have just communicated with Mulensel about these precautions, and they are fully accepted. So, from a technical point of view, there is no problem at all. Fu Xin said affirmatively.

"From a technical point of view, there is no problem at all......" Hua Yaoguo repeated Fu Xin's words to himself, and after a while, Hua Yaoguo said again: "If that's the case, you can initialize a letter of intent to cooperate first and pull the relationship together." ”

"When I return home, I will consult the Ministry of Foreign Affairs to see if they have any specific policies in this regard. The spring breeze of reform and opening up has blown into the land, and the country is currently stressing the emancipation of the mind and the emancipation of the productive forces, and in terms of foreign affairs, the country is no longer one-size-fits-all, and it needs to be analyzed on a case-by-case basis. Hua Yaoguo said.

"I see." Fu Xindao, he turned his head and said to Murensel: "Mr. Murensir, I have discussed it with our leader. In view of the current war situation in South Sudan, we still need to return to China and ask the foreign ministry for instructions, after all, it involves weapons, which may involve interference in the internal affairs of other countries, and our country's foreign policy does not allow interference in the internal affairs of other countries, so we can't give you an accurate answer now. ”

After a change of words, Fu Xin continued: "However, we can first establish a preliminary contact mechanism, and once we have obtained the approval of the state, we can provide you with equipment. ”

China's foreign policy is the Five Principles of Peaceful Coexistence, which are: mutual respect for sovereignty and territorial integrity, mutual non-aggression, non-interference in each other's internal affairs, equality and mutual benefit, and peaceful coexistence.

Over the years, the five principles of "mutual respect for sovereignty and territorial integrity, mutual non-aggression, non-interference in each other's internal affairs, equality and mutual benefit, and peaceful coexistence" have not only become the basis for China to pursue an independent foreign policy of peace, but have also been accepted by the vast majority of countries in the world and become an important norm governing international relations.

Therefore, Murensil naturally understood what Fu Xin meant, so Murensil said happily, "That's great!" ”

Fu Xin said that he still needs to ask the Chinese diplomatic department for instructions, which is also something that he expected in Murensir. After all, Fu Xin gave him a promise, as long as the diplomatic problems can be solved and there are no obstacles in terms of equipment, this is already the best result that Murensel can get in Frankfurt.

"However, Mr. Fu Xin, I still have a little bit of something very difficult that I need to explain to you in advance." Muhrensl said with a look of shame on his face.

Fu Xin said: "Mr. Murensel, we are all friends, if you have anything to say, just say it, if it is a small matter, I can directly help you do it, if it is a big matter, Nanshi, we can discuss and solve it!" ”

Murensil nodded and asked, "Mr. Fu Xin, I would like to know, if we have the possibility of cooperation, how much will the overall investment of the 500,000 tons of refinery equipment you mentioned just now?" ”

Fu Xin thought about it, and he couldn't say it for a while, after all, he didn't do petrochemical or petroleum equipment, and he couldn't say how much it was, he didn't have this ability, so Fu Xin looked at Hua Hongxing, Fu Xin's eyes were already very clear, and he asked Hua Hongxing if he knew.

The red star nodded. "Mr. Murensl, I've done the math, we're building it as a turnkey project, with a total investment of about $250 million," he said. ”

Turnkey projects are a form of non-equity investment that has been developed after the investment of multinational corporations in developed countries into developing countries that are not open enough has been blocked.

It refers to the construction of a factory or other engineering project by a multinational corporation for the host country, and once the design and construction works are completed, including equipment installation, commissioning and preliminary operation, the "key" of the ownership and management of the factory or project is completely "handed over" to the other party in accordance with the contract, and the other party starts to operate.

Thus, a turnkey project can also be seen as a special form of management contract. To complete a turnkey project, it is not the same as organizing a large and complete group company. Rather, it is according to the laws of the market economy. Based on the principle of mutual benefit, mutual promotion and mutual support. To undertake turnkey projects, the service unit does not have a certain economic strength.

The contract of "turnkey project" includes a number of phased operation steps such as engineering design and construction, installation of corresponding facilities and equipment, and commissioning and commissioning.

Once a turnkey project is completed, the ownership and management of the plant or project is completely handed over to the builder and investor of the project. It began to enter the formal production and operation stage. Generally speaking. The continuation of the turnkey project after delivery is one of its key contents. At the same time, it is also an important way for project contractors to make profits.

Hua Hongxing knows English, and what he just said is also English. Naturally, Murensel understood.

"$250 million ......" After thinking for a while, Mullens nodded and said: "This price is completely acceptable to us, but we don't have the money now." I would like to ask, would you like to provide such a set of equipment in the form of compensation trade? ”

Compensation trade, the full name of Compensation_Trade in English, also known as product resale, refers to the transaction of one party on the basis of the other party's credit, the import of equipment and technology, and then the products produced by the equipment and technology to offset the price and interest of the imported equipment and technology in installments.

The relationship between the two parties to the compensation trade belongs to the relationship between the buyer and the seller within the scope of international trade, the buyer has full ownership and use rights to the purchased machinery and equipment or technical know-how, etc., and the seller does not own shares in the factory enterprise.

This form not only makes use of foreign capital, but also expands the sales channels of goods. Compensation trade is often combined with processing trade, often referred to as "three to one supplement".

Due to the long duration of compensation trade, generally 10~20 years or longer, in most cases, financial institutions should be directly or indirectly involved.

The implementation of compensation trade can solve the shortage of funds and foreign exchange for buyers, and can take advantage of the opportunity to open up overseas markets to earn foreign exchange; For the seller, it can expand the sales of products, increase exports, and obtain a stable supply source.

The disadvantages of compensation trade are that the form is less flexible, it is more difficult to reach an agreement, the procedures are more cumbersome, and the risk is greater. It was first adopted by Germany in 1931, and was also used by the former Soviet Union and Eastern European countries in their trade with the West. After China's reform and opening up, it also began to adopt this method.

In the 80s of the 20th century, that is, at present, China has widely adopted the method of compensation trade to introduce foreign advanced technology and equipment, but the scale is not large, mostly small projects, and foreign businessmen enter China as direct investment in equipment and technology.

According to the situation of Fu Xin's previous life, the compensation trade is decreasing day by day. However, with the development of China's market economy, the superiority of compensation trade in the use of foreign capital and the promotion of sales cannot be ignored.

According to the different subject matter of repayment, compensation trade can be broadly divided into three categories:

The first is direct product compensation. That is, the two parties agree in the agreement that the equipment supplier promises to purchase a certain amount or amount of products directly produced by the equipment to the equipment importer.

The second is compensation for other products. When the equipment itself does not produce material products, or the direct products produced by the equipment are not required by the other party or are not marketable in the international market, the two parties may negotiate according to their needs and possibilities to replace them with the repurchase of other products.

The third is labor compensation. This practice is commonly found in small and medium-sized compensation trades in combination with contract processing or contract assembly. The specific method is: according to the agreement, the other party often purchases the required technology and equipment on behalf of the other party, and the payment is paid in advance by the other party. After processing and producing according to the requirements of the other party, we will deduct the arrears from the payment receivable in installments.

The above three approaches can also be combined, i.e., comprehensive compensation. Sometimes, according to the needs of the actual situation, it can also be partially compensated with direct products or other products or services, and partly paid with cash exchange, etc. (To be continued......)