Rebirth 99 to become a car giant.

Chapter 155 Unexpected Way of Cooperation

The year 2001 was an important node in China's steel market.

In that year, China's steel market experienced a major fluctuation, triggering a steel winter that lasted for several years.

In early 2001, steel prices were still at a high level.

However, with the bursting of the American Internet bubble and the slowdown of the global economy, the Chinese steel market began to experience unprecedented overcapacity and declining demand.

Cao Yang had some impressions of this.

This round of price decline lasted for several years, causing many steel companies to fall into losses or even go bankrupt.

Although the Chinese steel market faced such a severe situation in 2001, the production capacity and output of the Chinese steel industry continued to increase.

The blind expansion of production capacity of various steel plants has led to the long-term situation of oversupply.

Even if it starts to suffer losses this year, it has not changed the development path of China's steel industry towards excess, inefficiency and low quality.

Just list a few data, and everyone will know the production capacity in 2001.

Sinosteel, which ranks first, has a steel production capacity of 1.5 million tons.

Baosteel, ranked second, has a steel production capacity of 1 million tons.

The steel production capacity of the third Anshan Iron and Steel Group has also reached 7000 million tons.

Even the fourth-old Wuhan Iron and Steel Group has a steel production capacity of 5000 million tons.

In addition, there are a lot of steel manufacturers behind.

At this time, the United States, the world's largest economy, has a steel production capacity of only 1.4 million tons, and Japan, the second largest, has only 7000 million tons.

Even the combined production capacity of several other countries with strong steel industries cannot match that of China.

One can imagine how much pressure Guangzhou Iron and Steel and Shaogang Iron and Steel Co., Ltd., as local enterprises, are under.

However, the two companies had different attitudes towards the visit of Nanshan, a potential major customer.

"Mr. Cao, the people at Guangzhou Iron and Steel are a bit condescending. Although they want our orders, they feel that they are very powerful."

"I don't think it's feasible for us to cooperate with them."

Today, Cao Yang took Pan Jinxing, He Qingquan, Zhang Fugui, Zeng Tingting and others to visit Guangzhou Iron and Steel Co., Ltd. There was originally a big project for them to cooperate with.

However, their attitude made Cao Yang lose interest in speaking.

For this reason, the little secretary also had great opinions.

"Guangzhou Iron and Steel is considered a big company in Yangcheng. Whether it is output value, number of employees, or administrative status, Nanshan cannot be compared."

"Those people are still basking in their own glory, so we don't have to worry about their attitude."

Although life for state-owned enterprises these days is far from as easy as it would be in later generations.

But everyone’s attitude towards looking down on private enterprises is similar.

So although Cao Yang felt unhappy, he couldn't be said to be very angry.

If we can't get along, we won't cooperate.

We have the world's leading formulas for various bearing steels, mold steels, gear steels, spring steels and other special steels, and we even have unique insights into related processes.

Afraid of finding someone to work with?

If companies like Sinosteel and Baosteel weren't too high-level and too large, and he was worried that none of his bones would be left if he cooperated with them, Cao Yang wouldn't have gone back to Guangzhou Iron and Steel.

"Mr. Cao, do we really want to invest in a steel plant?"

"Even if you don't smelt crude steel, it will still require an investment of at least several hundred million. Isn't it cost-effective?"

Although He Qingquan also hopes to solve the problem of domestic special steel.

But he did not agree with letting Nanshan invest on his own.

As for the so-called specialization in the industry, he didn't think the process improvements developed by the Nanshan R&D Center's special steel team could be very powerful.

As for the so-called exclusive formula, it is even more suspicious.

Even with the help of Shaogang or Guangzhou Iron and Steel Co., Ltd., he still has doubts about whether qualified special steel can be produced in the end.

"After our output of gearboxes, bearings, and gears increases in the future, the company's own annual demand for special steel alone will exceed 10 tons, or even exceed 20 tons."

"With such a huge demand, if it is all imported from abroad, it will cost a lot of money."

"And there is no way to buy qualified special steel from domestic sources."

"Now large molds are beginning to expose problems. If we produce large bearings and large gears later, will problems also occur?"

"That's the inevitable answer."

"Also, the crankshafts of those presses are now purchased from outside, and the materials are also imported. As a result, the cost of our presses is invisibly higher."

"These all mean that Nanshan needs a stable source of special steel. Domestic steel manufacturers cannot satisfy it, so we will find a way to satisfy it ourselves."

Cao Yang's attitude is very firm.

Special steel is so important.

It is related to a series of development strategies behind him.

Of course, in the already fiercely competitive steel market, he has no interest in competing with those chubby state-owned enterprises.

In the new field of high-end special steel, there is no rival in the country.

"Mr. Cao, the price of steel has dropped sharply in recent months, and the overcapacity situation is serious."

"Many media outlets are regulating the policy. In this case, if we invest in a steel plant, we may not be able to get approval, right?"

Pan Jinxing, who followed me on the visit today, put forward an original point of view.

"If you build an ordinary steel plant, or a plant with a production capacity of less than 100 million tons, you will definitely not get approval."

"But we don't produce crude steel ourselves. We directly buy steel billets or steel coils from outside and then carry out deep processing. Not only will special steel factories like this not be suppressed by policies, but they will receive strong support."

"After all, we did not increase steel production capacity, but enriched the types of steel."

"It even seizes part of the market for special steel from foreign steel manufacturers. This is something that cannot be passed in terms of policy."

Cao Yang once again reiterated his positioning of building a special steel factory.

It does not operate a full-chain factory from iron ore to products, but only does deep processing of post-processes.

This can greatly reduce the investment amount of special steel plants.

After all, since there is no need for a blast furnace, the pressure on environmental protection has also been reduced a lot.

Of course, whether electric furnace, induction furnace or out-of-furnace refining is used, the demand for electrical energy is still relatively large.

There is no way around this.

"Then I can only hope that Shaogang's attitude will be better tomorrow and they won't be ungrateful."

"According to Mr. Cao's plan, it's just a matter of giving money to Shaogang."

Before visiting, Cao Yang briefly explained his plan to everyone.

So Zeng Tingting knew the general plan.

"Now that the steel industry has overcapacity, Shaogang is under greater pressure than other manufacturers."

"Although they only have a production capacity of about 400 million now, they are wealthy with at least 100 million production capacity."

"If we can help them consume 30 tons, it will definitely be great news for Shaogang."

Cao Yang does not want to build a special steel factory in other provinces. It will require additional costs for management and transportation.

Shaozhou is close to Yangcheng, and the southernmost county is almost the same as the suburbs of Yangcheng.

Therefore, Cao Yang is more inclined to cooperate with them.

……

"Mr. Chen, although Nanshan Technology Co., Ltd. is only a private enterprise, their bearings and other products are exported to the United States and Germany. They are a rare technology supplier in the domestic automobile industry and can be recognized by so many international automobile giants."

"This time, their president Cao will personally lead the team. I suggest you also attend to see how they want to cooperate."

Mo Yongting, director of Shaogang's sales department, attaches great importance to Nanshan.

Although Shaogang's special steel production capacity is not particularly large, the types are relatively complete, including high-strength steel, high-temperature alloys, corrosion-resistant alloys, etc., which have broad application prospects in aerospace, automobile manufacturing, energy and other fields.

Especially in the booming automobile industry, Shaogang really wants to make a difference.

However, the results in recent years have not been very satisfactory.

In order to let Shaogang's special steel enter Nanshan, Mo Yong has visited Zhang Fugui several times in Yangcheng.

"Now the company's production capacity is under great pressure, and mosquitoes are still meat no matter how small they are."

"Now that their general manager is here, it shows that he is still very sincere in cooperating with us."

"Get the people in the technical department to prepare well and show off our technical reserves in bearing steel, mold steel, etc."

Chen Qingwen has a heavy burden, and the jobs of more than 5000 employees are in his hands.

If management is poor, large-scale layoffs will inevitably occur again, which no one wants to see.

"No problem. I have already contacted the deputy chief engineer in charge of special steel and the staff in the technical department and asked them to attend the meeting together."

Feeling Chen Qingwen's positive attitude, Mo Yong breathed a sigh of relief.

If these projects do not have the active support of the general manager, there will often be much less room for negotiation of conditions.

……

2001 9 Month 1 Day.

On the first day of school for all students, Cao Yang and his party came to Shaozhou and received a warm welcome from Shaogang.

Shaogang, which urgently needs to find new customers, has a much better attitude than Guangzhou Iron and Steel.

General Manager Chen Qingwen personally took Cao Yang to visit the factory, and then had a sumptuous lunch in the small canteen at noon. It was not until two o'clock in the afternoon that the negotiation began in the conference room.

"Mr. Cao, our Shaogang's bearing steel and other special steels used in the automotive industry are no worse than those of Anshan Iron and Steel and Baosteel."

"And we have the advantage of distance, lower transportation costs, shorter delivery cycles, and more timely after-sales service."

“Can your company consider using Shaogang’s special steel for its products?”

Yesterday, Chen Qingwen took a closer look at the situation of Nanshan Technology Co., Ltd.

This understanding was really a surprise.

There is actually an industrial park under construction in Nanshan. Many factories in it will be put into operation at the end of this year and the first half of next year. By then, there will definitely be more demand for special steel.

Therefore, Chen Qingwen's attitude became more positive.

"Mr. Cao, our Shaogang Steel Co., Ltd. is very advantageous in terms of QCD and special steel. By joining forces with Nanshan, we are completely joining forces."

Mo Yong was also looking forward to it and interrupted.

However, as soon as Cao Yang opened his mouth, he immediately diverted their attention.

"Mr. Chen, our Nanshan is planning to purchase 30 tons of crude steel from Shaogang every year, but I have a condition."

During the morning visit and lunch, the two parties had exchanged a lot of things.

So Cao Yang didn't go around in circles and went directly to the topic.

"30 tons of crude steel?"

Chen Qingwen was stunned for a moment.

Then there is ecstasy.

The entire Shaogang Iron and Steel Co., Ltd. now only has a production capacity of about 400 million.

Under normal circumstances, it is normal to have a certain amount of spare capacity.

In other words, as long as the capacity utilization rate reaches about 350 million tons, basically the pressure on Shaogang will not be great.

The current capacity utilization rate is about 300 million tons. If we can increase the sales volume by 30 tons, the pressure will almost disappear.

"Mr. Cao, let me confirm. What you dare to say is 30 tons of crude steel?"

Although Chen Qingwen was sure that he heard correctly, he still felt unbelievable.

"That's right, it's 30 tons of crude steel."

"But we have a prerequisite."

Cao Yang saw Chen Qingwen's expression in his eyes. It seemed that Shaogang was under a lot of pressure this year.

The key is that according to the development of the steel industry, the pressure will be greater in the next few years.

"Mr. Cao, if you have any conditions, just say them. If you don't need anything that Shaogang can do, we will do our best to meet them."

Chen Qingwen waved his hand and was in a very good mood.

For him, it was like pie falling from the sky.

There is such a good thing.

"We hope that Shaogang will help Nanshan build a special steel plant specifically for the production of bearing steel, gear steel, mold steel and other automotive steel."

"This special steel plant will purchase crude steel directly from Shaogang and then process it into the required special steel."

When Cao Yang said this, Chen Qingwen immediately felt the pressure.

Build a special steel plant?

This is definitely not a trivial matter.

As long as the crude steel production capacity is not increased, he is not worried about the approval document.

But this is a big project, it costs a lot of money, and it doesn’t seem cost-effective.

"Mr. Cao, building a special steel plant, even if it does not smelt crude steel, can reduce the cost and cycle a lot, but it will still require an investment of at least [-] million."

"We, Shaogang, can't earn 30 million even if we sell 1 tons of crude steel. There's no way we can do this business."

Obviously, Chen Qingwen thought that Cao Yang was asking Shaogang to help build a special steel plant for free in exchange for crude steel orders.

"Mr. Chen, you misunderstood."

"The funds for the construction of the special steel plant do not need to be provided by Shaogang. Nanshan can pay this amount."

"We just hope that Shaogang will arrange dedicated personnel to build this factory and arrange personnel to help operate the steel plant in the early stage."

“Even the salaries of relevant personnel can be paid by Nanshan.”

When Cao Yang said this, Chen Qingwen immediately said without hesitation: "If this is the case, then I can answer Qin now. Shaogang agrees to help Nanshan build a special steel plant."

"And if we can set a general direction today, I can immediately arrange personnel to take charge of related planning work."

"Blast furnace smelting and other workshops that do not require supporting crude steel can be completed by the end of next year at the earliest."

As an old steel man, Chen Qingwen is very clear about the construction of steel plants.

Shaogang has also expanded its production many times in recent years. For them, building a special steel plant with a production capacity of 30 yuan is not a big problem at all.

What is rare is that after construction, the products are marketable.

But this is not something Shaogang needs to worry about.

Anyway, I'm just helping with the construction.

"President Chen is refreshing!"

"Then our Nanshan will not be ink-marked."

"I will arrange specialized personnel to handle this project later, and then officially start the site selection and factory planning work for the special steel plant."

"We strive to have it completed and put into production as soon as possible next year. Our gearbox factory, gear factory and mold center are all waiting for the special steel to be put into the pot."

Although Cao Yang also knew that Shaogang agreed so happily, it may not necessarily mean that the other party really supported Nanshan.

It is possible that the other party did not express the difficulty.

For example, the quality of special steel is not as good as that of imported steel, and it will not be competitive by then.

Or maybe there is currently excess steel production capacity and it is not suitable for investment.

Shaogang will not take the initiative to say it.

But it doesn't matter. Cao Yang is not worried yet. He knows what special steel is like.