Chapter 238: Bankruptcy Frenzy!

At present, the main companies in the world produce carbon fiber, mainly Longteng Group in China, and Toray, Mitsubishi, Hearst, Cytec, and so on.

In 2002, global carbon fiber production was 2.58 tons.

Among them, Longteng Group has produced more than 14,000 tons of carbon fiber, accounting for 54% of the global output!

More than $4 billion in annual revenue!

The carbon fiber industry as a whole last year was less than $7 billion.

The revenue of Longteng Group alone exceeds 60% of the total volume!

This is mainly because the carbon fiber produced by Longteng Group is mainly used in aerospace, high-end industry, military industry and other fields.

The unit price is relatively expensive, about 220,000 US dollars per ton.

In fact, the ex-factory price of carbon fiber of Longteng Group is now lower than the price claimed to the outside world.

For example, when shipping to Snecma was shipped, the price per ton was around $200,000.

This kind of price is only available to them.

Because every time they get the goods, they are at the thousand-ton level!

The trade volume is hundreds of millions of dollars at a time!

"President, an old customer in Texas has decided not to use our materials anymore."

The female secretary walked into a luxurious office in a bit of a panic.

The company, in the past few years, has been getting lower and lower in annual revenue, and has incurred huge losses every year!

Last year's revenue, compared with the year before last year, was a serious loss, and the revenue fell by 30%!

Compared to their peak seven years ago, it has dropped by more than 70 percent.

The original group is also a giant in the materials industry around the world.

However, the successive losses over the years have made the company fall into the dilemma of bankruptcy and bankruptcy!

"What is the reaction of the shareholders?" Little Willie ignored the bad news from the secretary and asked with an unkind face.

Instead, he asked directly about the reaction of shareholders.

Compared with the loss of customers, Little Willie cares more about the reaction of his own shareholders.

The attitude of shareholders determines whether he can continue to sit in the position of president.

"The shareholders didn't react much, they just asked you to keep supplying the military."

The secretary also showed her professionalism at this time and calmed down.

The group has an inextricable relationship with the Federation, and the military is an important customer.

Almost all of the losses are now from business customers.

But as long as the military can hold on, then there is no big problem.

"Customers in Texas, what they say."

After little Willie received the secretary's assurance, he came back to his senses and said.

Texas' customers, among the group's customers, are not considered large customers.

The amount of carbon fiber used every year is only a few tens of tons, and the value does not exceed 10 million US dollars.

However, this sends an important signal.

That is, even Texas Industries, which has a deep cooperation with the federal military, has given up using their materials.

Their carbon fiber industry, in addition to supplying to the military, basically has no customers anymore!

"They chose the finished carbon fiber from Snecma." The secretary said with some embarrassment.

"The price of Snecma's finished carbon fiber is lower than the price of our raw materials."

"It's hard for them to give up such a price advantage!"

The carbon fiber raw materials of Snecma are basically bought from Longteng Group, and the price advantage is obvious compared with the group.

After the aerospace manufacturing cooperation with Longteng Group, the cost of finished products has been further reduced.

It has reached the point where it is cheaper than the group's raw materials!

"Hearst and Cytec, do you have any response to our proposal?"

The secretary's answer made little Willy in a trance for a moment.

He already understood that if they relied solely on product quality and product price, they would no longer be able to defeat the united Longteng Group and Snecma Company.

So, not long ago, he contacted two of the country's largest carbon fiber producers.

I want to solve this problem in other ways.

"They still have some concerns about this kind of practice."

The secretary voiced the hesitation of the two companies.

Both Hatch and Cytec are different in that their carbon fiber business is only one part of their own business.

Even if it's a loss, it's not a big deal.

"Do they have to wait until someone else hits our door before they know how to resist?!"

Little Willie slapped the table angrily and roared.

In fact, Little Willy's proposal is a good thing for them.

But those two companies, unlike the group, are basically in competition with the Dragon Kingdom.

They also have a lot of cooperation with the Dragon Kingdom, so they are naturally more cautious about this.

"President, if it's just us, do we still have to file a lawsuit?"

Little Willie's solution is actually very simple, but it is also very practical.

That is, to file anti-dumping lawsuits against materials and finished products from Snekma and Longteng Group in China.

Because, in the past few years, there has been a massive influx of materials and manufactured products from these two companies all over the world.

Especially in countries with developed high-end industries, there are even more imports!

In a way, this is indeed a dumping.

However, such high-value-added, high-tech products are generally not included in the dumping list.

"They don't want to offend people, so we'll do it ourselves!" Little Willie said with a somewhat distorted face.

A week later, Eagle Sauce filed an anti-dumping investigation against Longteng Group's carbon fiber raw materials and finished products.

Once the investigation is established, Longteng Group will not only face the loss of a large market.

And fines that can go up to billions of dollars!

In this regard, Long Teng naturally will not admit such a desire to add sin!

So a huge team was hired and a protracted litigation process began.

Such anti-dumping proceedings cannot be concluded in a few months.

The whole process can take several years or even more than ten years.

In this process, it will be difficult for Longteng Group's products to enter the domestic Eagle Sauce.

This is also the plan that little Willy came up with.

Through litigation, it is necessary to delay the time for Longteng Group to enter the country of Eagle Sauce.

With a long time gap, whether it's to develop new products or improve the production line, so as to reduce the finished carbon fiber product.

For the group, it is very cost-effective.

However, the group was able to make such an off-market move.

For other companies that are in the same alliance as Snecma, it is not so lucky.

In fact, there are very few companies that produce carbon fiber in the alliance, and the production volume is very low.

In Snecma companies, under the price war below the cost price of others, these companies do not even have the ability to protect themselves at all.

One by one, they could only watch as Snecma snatched away their original customers.

Then, helplessly, apply for bankruptcy liquidation!

According to incomplete statistics, only in the year of 03, because of the dumping of Snecma Company, there were at least 20 carbon fiber companies that collapsed in the alliance!

After this year, the carbon fiber industry within the entire alliance is basically monopolized by Snecma Company!

(End of chapter)