The flowers in the factory of rebirth are too fierce

Lin Zhiyuan wrote this report very slowly because it was of too great significance and he had to be more cautious.

In the report, Lin Zhiyuan not only analyzed the background and reasons for standardized mergers in detail, and pointed out the steps and methods of standardized mergers, but also pointed out the benefits and advantages of standardized mergers, and used a large number of examples to support them.

Lin Zhiyuan mentioned the example of the country concentrating its efforts on the development of two bombs and one satellite in the 1960s.

At the same time, he also mentioned the recent case where the Price Alliance of the Steel Industry Association united 16 steel companies across the country and successfully negotiated with Australian mining companies.

"Under the circumstances that our country's enterprises are generally small in size, if we do not unite, we will not be able to compete with those large foreign enterprises that have been developing for decades or even hundreds of years. We can only concentrate our efforts, unite as one, and through mergers Only by increasing the size can we win the competition in the future.”

At the same time, Lin Zhiyuan also pointed out two parts of the report that he was worried about.

First, excessive and disorderly development of minerals has resulted in high-quality minerals being sold at low prices and a large loss of state-owned assets.

Here Lin Zhiyuan highlighted the issue of rare earths.

Rare earth is the abbreviation of a group of metals that are currently widely used in many fields such as electronics, petrochemicals, and metallurgy. There is a common metaphor for the importance of rare earths: oil is the blood of industry, and rare earths are the vitamins of industry.

Rare earths are widely used in civilian and military applications. They are also indispensable raw materials for high-tech industries such as advanced equipment manufacturing, new energy, and emerging industries. They are valuable and key strategic resources.

All high-tech products around the world rely on rare earths, and there are few substitutes for this special mineral.

However, the selling price of this rare strategic resource is even lower than that of pork. Cerium oxide with a purity of 99.9% is 18 yuan/kg. In the past, it sold as high as 30 yuan/kg.

In the previous life, from 1990 to 2005, China's rare earth export volume increased nearly 10 times, but the average price was suppressed to 64% of the original price. In the face of the geometric demand for high-tech electronics, lasers, communications, superconducting and other materials in the world, the price of rare earths in China has not increased, but has continued to decline.

China's rare earth industry has many firsts in the world: No. 23 in resource reserves, accounting for about 80%; No. 90 in output, accounting for 60% to 70% of the world's rare earth commodities; No. in sales, accounting for % to % of rare earths Products are exported abroad. But why don’t we have a say in price?

The prices of China’s rare earth products have long been controlled by foreign merchants. Some powerful foreign traders and companies purchase large quantities of China's rare earth products when prices are low. When prices rise, they stop purchasing and use inventory, and then purchase again when prices drop again. This forces domestic companies to compete to sell at lower prices. Foreign countries are all big buyers, but we are selling to more than 100 companies. Vicious competition among Chinese export companies has resulted in precious short-term rare earth products such as neodymium, terbium, dysprosium, and europium being exported at low prices, while cerium, lanthanum, yttrium, etc. are heavily overstocked, and companies are struggling to make small profits.

China has opened its door to supply rare earths to the world regardless of cost. With 23% of rare earth resources, my country accounts for more than 90% of the world's market supply. Citigroup, Mao Xiong and some European countries with rare earth resources all import rare earths from China. Dongsang State has stockpiled rare earths from China, enough for its domestic use for 100-300 years, thereby controlling the international pricing power of rare earths. Compared with the continuous doubling of international iron ore and oil prices in recent years, it is puzzling that the prices of China's rare earths have not risen but have fallen.

Lin Zhiyuan pointed out that in order to solve the rare earth problem, the most effective way is to merge and reorganize large-scale state-owned mining companies that specialize in rare earth mining. Shut down small non-compliant mines and cancel the qualifications of companies that previously had the right to sell rare earths to foreign countries. Merge them into mining conglomerates.

In addition to mineral issues, Lin Zhiyuan also mentioned the high-tech industry and used photolithography machines as an example.

"Competition in the 21st century is ultimately a high-tech competition. However, our country's scientific research strength and the quality of scientific research personnel in this area cannot be compared with that of Western developed countries. We need to integrate resources and funds, with universities and scientific research institutions as the basis, and concentrate on merging and establishing Large technology groups cannot wait any longer, otherwise the current strength of my country’s technology companies will lead them further and further away from their opponents on the high-tech track.”

"In the future, technological competition between countries will be reflected in all aspects. Taking photolithography machines as an example, we must mobilize the efforts of the whole country to have any hope of success. Photolithography machines play a vital role in the fields of semiconductor manufacturing, microelectronics and nanotechnology. It plays a crucial role and is known as the "heart of chip manufacturing". Its technical level directly determines the accuracy and efficiency of chip production. If we do not pay attention to photolithography machines now, our country will definitely be choked by foreign countries in the field of chip manufacturing in the future."

Lin Zhiyuan spent a full week reviewing a large amount of information, writing and rewriting, and finally formed this 12,000-word report. After checking that it was correct, Lin Zhiyuan sent the report to Zhou Lang's mailbox.

After receiving the report, Zhou Lang did not dare to neglect it. He printed it out immediately and handed it to Li Zhenshan.

After Li Zhenshan read it, he revised the report based on his work experience during this period and presented it to Wu Dingguo for review.

Wu Dingguo was the leader who almost gave Lin Zhiyuan points during the meeting that year. Now the top management has asked him to concurrently serve as the secretary of a large-scale working committee, and he is well aware of the great responsibility of this job. Since taking office, he has held many meetings to seek solutions to various problems faced by large enterprises.

After Wu Dingguo read the report, he found Li Zhenshan in his office.

"Director Zhenshan, I have read this report. It is very well written and meaningful. It not only analyzes the difficulties faced by my country's large enterprises very thoroughly, but also provides solutions. Zhenshan, you can see that. , you have really thought hard about this issue. When I transferred you to the large-scale working committee, it seems that this move was the right one."

"Secretary Wu, actually a large part of this report was suggested by Lin Zhiyuan. Do you remember Lin Zhiyuan?"

Wu Dingguo smiled, "How could I forget that stubborn boy who would rather be punished than agree to build a factory in Nanyang? I heard that he is now in charge of the construction of the Yangcheng Branch of Lesteel Steel. Why, he also has a lot of opinions on the topic of state-owned enterprise reform. interested?"

"Secretary Wu, Zhiyuan is very studious. In addition to the steel major, he is involved in many fields."

Wu Dingguo nodded. He thought of Lin Zhiyuan's accurate prediction of the time when the Nanyang financial crisis would occur. "This is true. At least he is better than ordinary experts in the economic and financial fields."

"Director Zhenshan, this is a rare talent! Have you ever thought about moving him to your side to assist you in your work?" Wu Dingguo looked at Li Zhenshan with a smile.