Rebirth 76: Industrial Internet Empire

Yang Mo shook his head and said regretfully: "Director Xu, I can understand your mood. Metallurgy and chemical industry are the foundation of the manufacturing industry. Although he is a little impatient, he rushes to develop 20 tons of large petrochemical equipment without laying a solid foundation. tons of petrochemical equipment, but this is also a pressing situation. The development of petrochemical equipment is changing with each passing day. We really need to catch up, otherwise we will be controlled by others..."

Xu Yuanshan seemed to have met a close friend and said hurriedly: "Yes, the domestic petrochemical machinery industry is in a downturn as a whole. The Ministry is eager to reverse this situation. It is normal to be a little eager for quick success and instant gain. Time waits for no one. Wait until we consolidate the foundation of 20 tons of petrochemical equipment. , foreign petrochemical equipment companies are already designing large petrochemical projects of 60 or even 80 tons..."

After Yang Mo pondered for a moment, he suddenly said: "Director Xu, I have an idea that may be able to reverse the overall sluggish state of domestic petrochemical equipment companies..."

"Oh? What do you think?" Xu Yuanshan asked with interest.

"The final assembly design and key equipment research and development of a 30-ton petrochemical project is a bottomless pit of money that is unaffordable for most domestic enterprises. Director Xu, do you think this is feasible? After Zhiyuan Group invested in the acquisition of Northern Petrochemical Machinery Factory, Then we can recruit a few key technical talents from foreign petrochemical equipment giants with high salaries, invest heavily in technological transformation and key equipment research and development, and drive the overall development of the entire domestic petrochemical equipment industry chain. Of course, if there is an opportunity to acquire another advanced Western petrochemical equipment company, Completing the merger with Northern Petrochemical Machinery Factory should have the effect of getting twice the result with half the effort..." Yang Mo said solemnly.

Xu Yuanshan was stunned for a moment, and it took him a long time to recover and said: "This plan is good, but to implement it, I'm afraid the funds required to be invested are far beyond our imagination!"

Yang Mo nodded and said: "Yes, to find technology masters from abroad who can take charge of their own business requires not only giving them several times their salary, but also additional equity incentives. Take the acquisition of Northern Petrochemical Machinery Factory, a large state-owned enterprise like this, for example. Retired and non-productive personnel are also a heavy burden!”

Xu Yuanshan thought for a while and said: "The retired and non-production personnel of the Northern Petrochemical Machinery Factory, the local government and brother units can help solve some of them. Of course, the bulk of it has to be solved by your Zhiyuan Group!"

"This is much easier to handle. We have to trouble Director Xu to coordinate and strive to give us a feasible and relatively reasonable acquisition offer. Time waits for no one. We cannot waste precious time in see-saw negotiations... ..." Yang Mo said sincerely.

……………………………………………………………

At two o'clock in the afternoon, Yang Mo personally sent the negotiation team brought by Xu Yuanshan to the hotel where Prince Sheikh was staying.

The rich temperament of the Middle Eastern prince opened Xu Yuanshan's eyes. The entire top floor of the hotel was taken over, and even the chefs and ingredients were brought from China.

Prince Sheikh personally went to the hotel door to greet him, which was enough to give Xu Yuanshan some face.

"Your Highness, thank you very much for your country's support for the development of China's petroleum industry! I wonder how many special loans your country is prepared to provide this time?" After a brief greeting, Xu Yuanshan asked straight to the point.

"Director Xu, the special loan requires your country to come up with a construction plan for a large petrochemical plant. After approval, the loan will be released in stages. Our plan is to provide one 30-ton, two 40-ton, total of three large-scale petrochemical projects. 60% of the construction funds will be supported by loans from us, and the remaining 40% will be raised by your country yourself." Prince Sheikh said after thinking for a moment.

The wealthy people in the Middle East just have a lot of money, but they are not stupid. If they want to obtain this loan, Petrochemical Corporation itself needs to come up with nearly half of the funds.

Xu Yuanshan was obviously stunned, but if he thought about it carefully, it was normal for the other party to have such a request. First of all, you must have an urgent need to expand petrochemical production capacity, otherwise you would not have allocated 40% of the construction funds. Secondly, for The strict review of construction plans is also due to concerns about fraud and misappropriation of special loan funds...

Xu Yuanshan made a rough calculation in his mind: 40% of the funds for the Jiangbei 40-ton petrochemical project have already been secured. The Yanjing Petrochemical Project has a unique geographical location. There is no problem in raising 40% of the funds on its own. Shengli Petrochemical Company has a solid foundation. There should be no problem. …

Thinking of this, Xu Yuanshan nodded and agreed to Prince Sheikh's request.

Prince Sheikh continued: "The refinery needs to build an advanced desulfurization device to mainly refine heavy crude oil. After the project is completed, in principle, all crude oil from the United Arab Emirates should be used..."

"Your Excellency, this is impossible! Our country also has its own oil fields. We can give you at most [-]% of the crude oil import share in these projects..." Xu Yuanshan flatly refused.

"No... no, then our special loan will become meaningless, at least it cannot be less than [-]%!" Prince Sheikh insisted.

"Most oil-producing countries have long-term supply contracts with us, and with the production capacity of our own oil fields, a 30% share is already the limit we can give!" Xu Yuanshan also refused to give in.

The negotiations reached a deadlock. After Prince Sheikh reduced his share requirement to 60%, which was the same as the loan ratio, he refused to give in. After Xu Yuanshan also increased his share of crude oil procurement to 40%, out of oil strategic security considerations, It is impossible to increase it any more!

As a last resort, the two parties could only temporarily shelve the dispute over the share of crude oil purchase and continue to negotiate on the loan term and interest rate.

As expected by Yang Mo, Prince Sheikh requested that the interest be settled at the benchmark interest rate of the Central Bank of China.

Xu Yuanshan argued rationally: "Your Highness, if the interest is settled based on our central bank's benchmark interest rate, the loan should be denominated in RMB. We need to sign a future contract on the exchange rate of RMB against the US dollar..."

Prince Sheikh certainly disagrees. The exchange rate of RMB against the US dollar has been on a downward trend in recent years.

There has also been considerable controversy over the interest rate discounts for designated loans. According to international practice, this kind of designated low-interest loan with an aid nature cannot be calculated as a commercial loan. Otherwise, why would you be allowed to designate it for use?

It was difficult to reach a consensus in the negotiations, and Xu Yuanshan became increasingly anxious. The Ministry of Petroleum was reorganized into two teams, and the Petrochemical Corporation urgently needed such an opportunity to break the situation...

Xu Yuanshan had no solution, so he could only ask the staff to find an excuse to go out and pass on the difficulties encountered in the negotiations to Yang Mo...

After the staff came back, he whispered in Xu Yuanshan's ear: "Use the crude oil purchase share in exchange for the loan period and interest rate discount..."