Nanshan Group wants to build a large-scale carbon fiber factory in China.
The meaning of this matter is very different.
The first meaning is to meet demand, because China's demand for carbon fiber is getting faster and bigger.
The second significance is that the construction of a 10,000-ton carbon fiber production base has established confidence for those engaged in materials industry research. We Chinese can do what foreigners can do, and we may do it better and faster than them in the future. .
In this case, the relevant approval and docking will naturally be quick and simple.
The same week that Cao Yang went to inspect, the project to build a 10,000-ton carbon fiber factory in Chang'an City was finalized with all parties.
Nanshan Carbon Fiber is officially listed independently and will place its R&D and production in Chang'an City.
Chang'an City provided 1,000 acres of construction land free of charge, and also granted a preferential policy of halving taxes for the first three years.
At the same time, some related companies took the initiative to give the green light to the construction of Nanshan Carbon Fiber.
Factory layout, equipment transportation, talent recruitment...
Whatever Nanshan Carbon Fiber lacks, others will provide it.
and made no demands on the shares.
Obviously, they have done some research on Nanshan Group and know that Nanshan Group does not like to build factories in joint ventures with others.
Therefore, they don’t plan to cause any trouble in Nanshan Carbon Fiber’s first factory.
Anyway, according to domestic carbon fiber demand, this 10,000-ton production capacity may not be enough in a few years.
At that time, when Nanshan Carbon Fiber was building its second and third factories in China, there would naturally be many opportunities.
"Mr. Cao, this is a big deal of yours."
"Currently, 90% of domestic carbon fiber is imported."
"Once this factory is officially put into production, 90% of the demand will be realized in China."
"However, the new factory of Nanshan Carbon Fiber produces T700 and T800 carbon fiber, and it makes high-end products."
"In terms of mid-range products, the demand for T300 and T400 is actually very strong."
“The more high-end the product, the higher the price.”
"No domestic company has yet achieved large-scale mass production of T300 and T400. Guangwei is willing to provide people, money, and land to cooperate with Nanshan Carbon Fiber."
"You only need to provide T300 and T400 technology in the form of technical shares, and you can obtain 30% of the shares of the joint venture."
"Mr. Cao, Guangwei's condition is definitely very sincere."
Chen Liang's execution ability is very high.
When he thought of cooperating with Nanshan Carbon Fiber, he took action immediately.
After having a preliminary understanding of Guangwei's situation, Cao Yang was also full of interest in this visit.
Although most people have never heard of this company, it is still quite popular among domestic private enterprises.
The conditions proposed by Chen Liang were obviously based on some research on the Nanshan Group.
Whether it is Yangcheng Huaqiang Factory or Xingyu Auto Lighting, these companies in which Nanshan Group holds shares account for 30% of the shares.
The cooperation method of Nanshan Group is also to provide technical or equipment support.
This time, Chen Liang obviously followed the same approach for the Nanshan Carbon Fiber cooperation project.
"Mr. Chen, the prices of T300 and T400 on the market have always been relatively high, but now they have begun to fall."
"When the Nanshan Carbon Fiber Chang'an Factory is put into production, their prices will definitely drop faster."
"This means that Guangwei's profit margin for T300 and T400 is not as large as it is now."
"Have you considered this situation?"
Since they were sincere in cooperating, Cao Yang naturally didn't want to beat around the bush.
But since we want to cooperate, we must clearly explain the situation.
Otherwise, something bad will happen to everyone, and it will not be beautiful.
"I have naturally considered this issue, but even if the price drops, there is still a lot of profit margin for us."
"Prices were too high before, but now they are only gradually returning to normal levels."
"The materials industry should not be a profit-making industry. A profit of 20 to 30 percent is already very high."
"Steel manufacturers such as Baosteel have single-digit profit margins."
Chen Liang felt something about the other party's cooperation from Cao Yang's words.
Naturally, he stated his considerations more positively.
The two people discussed in the conference room for a long time and directly finalized the letter of intent for cooperation.
Guangwei will refer to Nanshan Carbon Fiber to find a suitable address in the north to build a T300 and T400 carbon fiber factory with an annual output of 10,000 tons.
Nanshan Carbon Fiber develops the technology, and then Nanshan Equipment sells related equipment to Guangwei for a fee.
Considering that Nanshan Group already has a Nanshan carbon fiber factory, the factory that cooperates with Guangwei is directly called Guangwei Factory.
Obviously, Cao Yang went there to make money.
Of course, the ugly words come first.
After Guangwei obtained Nanshan's carbon fiber-related technologies, all carbon fiber factories were required to give Nanshan 30% of the shares.
You are not allowed to build any carbon fiber factories on your own.
Nanshan Group made two big moves in succession, and Liu Tianwu became a little anxious.
The Nanshan Carbon Fiber Chang'an Factory invested 3 billion yuan, which was definitely a big deal in 2007.
This is even more important than the investment projects of more than 10 billion in future generations.
Guangwei's carbon fiber factory, as the second large-scale high-performance carbon fiber factory in China, was soon determined to be built in the northern grassland province.
The investment scale is similar to that of Nanshan Carbon Fiber, reaching 2.5 billion.
If these two factories were located in Yangcheng, Liu Tianwu felt that the position under his butt would be moved this year.
"Mr. Cao, although it is difficult to provide so much land for the carbon fiber factory in our district, we actually have a lot of land in many places in Yangcheng."
“Whether it’s the east, the north, or the far south, it’s not a problem to free up one or two thousand acres of land.”
"The domestic demand for high-end carbon fiber is now very strong. Once we achieve domestic production, we can not only meet domestic demand, but also export overseas with the price advantage."
"So in fact, the current two factories are completely unable to meet the global demand for high-end carbon fiber."
"Do you think we can consider building another carbon fiber factory in Yangcheng?"
Liu Tianwu knew that he would most likely go to Yangcheng City to take up a position in the future.
So now my horizons are no longer limited to the district I am responsible for.
As long as he can put the Nanshan Carbon Fiber new factory project in Yangcheng, everything in the future will be his achievements.
And what he said is not unreasonable. The current two factories are almost enough to meet domestic demand.
It is completely insufficient to meet foreign demands on time.
Any kind of material, after China achieves domestic production, will definitely have a price advantage internationally.
High-end products like carbon fiber are no exception.
"Leader, thank you for your continued support."
"But carbon fiber factories are essentially chemical factories."
"There is a petrochemical plant in Yangcheng, which has caused a lot of dissatisfaction among the surrounding people. Every now and then, there will be news that the petrochemical plant will be relocated."
"Building a carbon fiber factory under such circumstances will inevitably cause a backlash from surrounding residents."
"The population density in Yangcheng is relatively high, so it is difficult to avoid the absence of villages near the factory."
"Coupled with high-performance carbon fiber materials, they are mainly used in the military industry, and Yangcheng has relatively little demand in this area."
"Building the factory in Chang'an City is actually not my personal intention, but a decision made after listening to the opinions of customers."
In this case, of course Cao Yang wanted to throw the blame away.
Besides, what he said was true.
Although there is also the intention of Nanshan Group to go out of Yangcheng, the carbon fiber factory is indeed not suitable to be located in Yangcheng.
In particular, Nanshan Carbon Fiber, in addition to producing high-end carbon fibers such as T700 and T800, will actually produce T1000, the world's highest level carbon fiber.
In the future, T1100, a material exclusively for military use, will also be produced.
Here, both T1000 and T1100 need to be highly confidential.
Even the production of T800 is done as little as possible, at least not in the past few years.
Let everyone think that Nanshan Carbon Fiber only produces T700 products.
"You are right, high-end carbon fiber is indeed not suitable for being placed in Yangcheng."
"But if our Yangcheng city is not suitable, there are still many places in Lingnan Province that can be considered."
"Especially for mid-range products such as T300 and T400, confidentiality requirements should not be so high."
Liu Tianwu is not someone who gives up easily.
Although he cannot leave the carbon fiber factory in Yangcheng, it would be a good thing for him to stay in Lingnan Province.
He is confident that he can become a leader of Lingnan Province in the future.
When a new factory is built, its production capacity will begin to explode in a few years.
Even when the time comes to expand production, I can even cut the ribbon.
"For the T300 and T400 projects, we are currently cooperating with Guangwei. There may not be relevant production capacity requirements in the short term."
"However, if further expansion is needed in the future, I will definitely give priority to selecting a location in Lingnan Province."
Cao Yang knew that Liu Tianwu would not give up easily if he could not even draw a pie.
Considering that Lingnan Province is an important province for export trade, if the business is exported to overseas in the future, we can indeed consider placing production in Lingnan Province.
For example, the westernmost cities are worthy of consideration.
In the future, both Baosteel and BASF will build factories there.
"Mr. Cao, I take your words seriously."
"There are many people above waiting for me to report."
Liu Tianwu said half jokingly, half seriously.
With Cao Yang's words, he can be considered as able to do business.
Anyway, the district's GDP has definitely been ranked first in Yangcheng in recent years.
In fact, he personally does not have that much pressure to attract investment.
Of course, if we go further in the future and have different things to consider, then that’s a different story.
However, Cao Yang completed the carbon fiber layout during this period and is considered satisfied.
It's hard for his competitors.
"President, the news from our China branch is that Nanshan Carbon Fiber's factory in Yangcheng now has the ability to produce several hundred tons of T700 per year."
"And with the T800 product, they have probably reached the threshold."
"Otherwise, we would not have invested 3 billion yuan in one go to build a carbon fiber factory with an annual output of 10,000 tons in Chang'an City."
"This will have a huge impact on the supply and demand relationship in the global carbon fiber market."
Taro Kondo reported the news to President Saganu with a heavy heart.
The news was worse than the worst-case scenario they imagined.
The Chinese moved too fast.
China’s speed is so scary!
"Is there anything going on with Hexcel America? Have you contacted them?"
When encountering this kind of problem, Saganu immediately thought of competitors in another section of the Pacific Ocean.
Although Toray has the highest market share in carbon fiber, American Hexcel has a higher market share than Toray in high-end military products.
Those manufacturers in the United States, whether it is Lockheed Martin, Boeing Defense, or Raytheon.
They are Hexcel's major customers.
In this case, if Nanshan Carbon Fiber comes in to disrupt the market situation, Toray will definitely have to join forces with Hexcel to discuss countermeasures.
Even Toray is planning to invite several other carbon fiber manufacturers in Japan to have a meeting together to discuss countermeasures.
"I contacted them, but Hershey didn't seem to care that much."
"Their products are mainly sold to specific customers. Even if China can produce similar grades of carbon fiber, it will not have much impact on their business."
"And I heard a rumor that their T1100-level materials have made some progress in the laboratory."
"Perhaps in the future they will launch this new material faster than us."
"President, American material manufacturers have always taken a high-end route. They like to develop new technologies to constantly eliminate products with low profit margins."
"To them, the T700 is a product that is about to be phased out."
"Nanshan Carbon Fiber has mastered the production capacity of T700, and its impact on them is not great."
When Taro Kondo said this, Saganu's face suddenly turned ugly.
He is also counting on American Hexcel to help him deal with Nanshan Carbon Fiber.
But now after hearing the analysis from his subordinates, he knew that there was no chance.
To put it mildly, Toray was originally a competitor of Hexcel, and almost all the civilian market was taken away by Toray.
Hexcel's products are relatively expensive and not competitive in the civilian market.
"Nanshan Carbon Fiber has just started the construction of the new factory, and it will not be put into production until the second half of next year at the earliest."
"We will take advantage of this free time to discuss with Toho and Mitsubishi to see how to corrupt Nanshan Carbon Fiber's T700 business."
"We can join forces to further reduce prices. Even after Nanshan Carbon Fiber products are mass-produced, we can sell T700 directly at cost price."
Saganu can only think of this old trick now.
When you can't make this product, I will make money at a high price, whether you like it or not.
When you can make this product, I will lower the price until it is no longer profitable for you and you cannot continue to operate.
Anyway, for Toray, they have been producing T700 products for more than ten years, and the amortization of various factory equipment can be directly eliminated.
Saganu does not believe that in this case, Toray’s cost will be lower than Nanshan Carbon Fiber.
After all, in the cost of a new material, R&D allocation and equipment allocation account for a very large proportion.
Even if China's labor force has an advantage, he doesn't think it can cover these allocations.
"It can only be like this."
"However, should we also consider building a T700 carbon fiber factory in China?"
"By then, all production costs will be similar to those of Nanshan Carbon Fiber, and we will be more confident in entering into a price war with them."
Toray has always produced carbon fiber in its own country and has no plans to build a factory in China.
But now the situation has changed, and the plan naturally needs to be adjusted.
"China's carbon fiber market is growing very fast, and it is definitely a market we cannot give up."
"This proposal of yours can be carefully reviewed."
Although Saganu was very reluctant to go to this point, his rationality still prevailed.
Although the carbon fiber business is not Toray's only business, it is a major contributor to profits.
That is something you absolutely cannot give up.
Otherwise, as the president, he would not be able to keep the position under his butt.
Invisibly, the emergence of Nanshan Carbon Fiber has also made a certain contribution to China's investment promotion work.
However, it is definitely not just Toray that is troubled by the emergence of Nanshan carbon fiber.
Porsche CEO Weidekind also felt very depressed when looking at some of the arrangements for the Geneva Motor Show.
Xingchen Motors brought Ziweixing, Yangwang and Xingkong to the exhibition, and the publicity offensive has already begun.
Don't think that only Chinese people cherish their lives, Europeans do the same.
The Starry Sky Sports Car had a car accident and hit a bridge pier. The front and rear of the car were destroyed, but there was no problem at all.
This news can be used not only for publicity at home, but also abroad.
It's just that the intensity of publicity cannot be as great as that within China.
But there is no problem in letting Porsche, which has always paid attention to Xingchen Automobile, know about this matter.
"Wolfgang, we have evaluated that if the new 911 uses a large amount of carbon fiber like the Starry Sky, the cost will rise significantly."
"Our selling price may need to double to cover these costs, which is unaffordable."
After learning about the various performances of the Starry Sky sports car, Porsche also bought a Starry Sky and dismantled it for research.
Among them, hybrid systems and carbon fiber parts are the focus of their research.
However, the research results are not optimistic.
"The Star Sports Car is now inferior to Porsche except for its brand power. It has already crushed 911 in all aspects."
"This is absolutely unacceptable."
"In response to this situation, the company's management needs to come up with effective response plans."
"Otherwise, future performance will become increasingly ugly, and the board of directors may consider changing the management layer."
Wolfgang threatened Wedekind rudely.
If you don't do it well, you may have to get out!
The board of directors asked you to be in charge of the company, not just to mess around.
This made Wedejin's pressure suddenly increase a lot.
In recent years, Porsche's growth in the Chinese market has been very rapid.
If we lose the Chinese market, although we won't be unable to survive, the financial report will definitely not look good.
The company is also thinking about whether it can suddenly acquire Volkswagen in the future.
If the financial report is not good-looking, many things will be affected.
"I will discuss it with the personnel in the R&D and procurement fields to see if we can find a better solution to deal with the threat of the Star Sports Car."
Wei Dejin had no choice but to bite the bullet.
(End of chapter)
