Chapter 553 Daily Chemical Company Expands Production
More than a month later, Yu Hong and Gan Ruolan returned to Baicheng from Europe after successfully inspecting the equipment. It didn't take long for her to submit a list of equipment purchases of more than 20 million meters of gold, and Geng Wenyang signed and agreed without hesitation after looking at it.
Although he didn't care how much money was spent, the landed people did. After Chen Suying of the finance department got the signed purchase order, she hurriedly found Geng Wenyang and reported: "Mr. Geng, if we follow the R&D center's spending method, the money in our account will not last much time."
"Oh? How?" Geng Wenyang said: "I remember that there is a lot of money in the account, there are more than five or six hundred million."
"The R&D center spent more than 60 million yuan on the purchase of equipment in the early stage." Chen Suying said: "This time it will cost more than 1700 million, which adds up to 230 million! If we do it this way, we'll run out of money if we do it two more times."
"Money is spent, you can earn it back, there will always be land." Geng Wenyang said with a smile: "Besides, the R&D center has just been established, and it will cost more to purchase the necessary equipment in the early stage, and it will not be such a flower in the future."
Chen Suying saw that the chairman was so calm and determined, so she could only take the list and leave. Looking at her back, Geng Wenyang knew very well that with the huge investment in the R&D center but the lack of convincing results in a short period of time, there will be more and more opposition voices within the group company.
Of course, if the company is packaged and listed in accordance with the ideas of Zhuang Xiaomeng and Min Hui, then the large amount of funds urgently needed by the R&D center will be satisfactorily solved. But by that time, the money was there, but it wasn't all up to you where to spend it.
If a large amount of money is spent on R&D with only investment and no return, shareholders will never agree, because the nature of capital is to pursue profits, and they will not support things that have no interests or cannot see benefits in a short period of time.
Fortunately, after entering the new century, the domestic real estate industry will gradually become prosperous, and then the real estate profits can be used to support the huge expenses of the R&D center, without affecting the interests of the group company.
In addition to grabbing huge profits from the real estate industry, the various enterprises of the group company must also carry out timely expansion and transformation to make their market competitiveness and profitability continue to increase.
Geng Wenyang's first thought was a daily chemical company. At present, the company has a set of laundry detergent production equipment with an annual output of 50,000 tons and a set of liquid detergent equipment with an annual output of 100,000 tons, as well as some cosmetics production lines with an annual output of several hundred tons.
The hot price competition in the detergent market has not stopped. Although the market retail price has doubled compared to last year, the net profit has not increased much with the rise in raw material prices, so the company can only earn about a dime from producing a bag of 500 grams of laundry detergent.
However, industrial production focuses on the scale effect, such as the last production line with an annual output of 100,000 tons of laundry detergent, even if each bag of laundry detergent can only make a dime, the whole device can get at least 20 million profits in a year.
The investment of a production line with an annual output of 100,000 tons of laundry detergent is about 30 million. That is to say, the money invested in the last laundry detergent production line with an annual output of 100,000 tons can be repaid within two years.
Of course, if the market price of laundry detergent rises, then the profit of the enterprise will increase thousands of times, and the payback time will also be shortened. That's the beauty of industrial-scale production.
Geng Wenyang called Lang Yiqi and Ding Shuqing and discussed, "Old Lang, I want your company to have a new laundry detergent production line with an annual output of 100,000 tons this year, what do you think?"
Hearing that Geng Wenyang was going to invest in expanding production, Lang Yiqi and Ding Shuqing were overjoyed: "Okay! Now that there are signs of price recovery in the detergent market, it is a good time to expand production."
Ding Shuqing suggested: "Mr. Geng, I think it is better to start a 200,000-ton liquid detergent production line at the same time. The two production lines add up to 300,000 tons, which will enable our company to maintain a leading position in the province in the past ten years."
"200,000 tons of liquid detergent?" Geng Wenyang asked, "How much is this investment?"
Ding Shuqing said: "It's less than the laundry detergent device, and it is estimated that 20 million is enough."
It takes 30 million to build a 100,000-ton laundry detergent production line
About, plus 200,000 tons of liquid detergent plant, the total investment is about 50 million. According to the calculation of 30% of its own funds, it needs to prepare 15 million, which is still within the financial capacity of the group company.
"Okay!" Geng Wenyang immediately made a decision and said: "Then according to the scale of 100,000 tons of laundry detergent and 200,000 tons of liquid detergent, the two of you will be in charge, and I will let the finance department of the group company cooperate with you."
In addition to being happy, Lang Yiqi mustered up the courage to ask for instructions: "Mr. Geng, Zheng Qunying is very familiar with the set of things in the project filing and approval process, do you want him to participate in the construction of the new project?"
Although Zheng Qunying made mistakes, Geng Wenyang did not fire him for his past achievements, but gave him a job to retire in the ancient city scenic area. At this time, Lang Yiqi risked being criticized and wanted to help his old colleagues make a comeback, which can be said to be worthy of the love between each other for many years.
Geng Wenyang pondered for a while and said, "Lao Zheng's mistake is still within the scope of forgiveness. He has been a factory director for so many years, and he should be very familiar with infrastructure. As long as he can deeply realize his mistakes, I think he can do it."
"But......" he reminded, "the decisive matter must be decided by the two of you, and he cannot be allowed to have the final say."
"I understand!" When Lang Yiqi heard that he allowed Zheng Qunying to make a comeback, he couldn't help but be overjoyed: "He is just assisting and helping, I know it in my heart."
Geng Wenyang glanced at him and said, "Old man, you are indeed very interesting. Zheng Qunying has made a friend like you, it's worth it!"
Lang Yiqi saw that he had seen through his thoughts, so he could only laugh. Ding Shuqing watched from the sidelines, and said with emotion in his heart: "Mr. Lang is known for his generosity and tolerance in the factory, and he is by no means as domineering as Director Zheng. If the roles of the two of them are reversed, Director Zheng may not be willing to intercede for Mr. Lang."
After the daily chemicals company decided to launch a new project, Geng Wenyang arranged for Liu Qing to advertise in various media in the province. As a result, the image of the daily chemical company's washing and cosmetic products was imprinted into the minds of the people of the province through overwhelming advertising bombardment, paving the way for improving the taste and price of many products in advance.
A year later, after rounds of approval and acceptance, Baicheng Electronic Industry School was finally upgraded to Baicheng Electronic Vocational and Technical College, which successfully transformed from a secondary vocational college to a higher vocational college, and had the qualification to issue junior college degrees.
For Binhai Wenyang Holding Group, it has a talent incubator that continuously provides it with graduates majoring in practical electronic technology, which initially solves the dilemma of shortage of electronic technology talents.