Chapter 410: Loss-making capacity

Song Hongxuan can think of things that Qin Hai can naturally think of.
In the international market, the price of one ton of wire is 280 US dollars, which is equivalent to 500 yuan. In the domestic market, the price of one ton of wire is more than 2,000 yuan, which is much higher than the international market price. Obviously, if it is sold abroad at domestic prices, it will certainly be unheard of.
Qin Hai's plan is to sell at a lower price than the international market. The wire in the international market is 280 US dollars. If Da Qin Group sells for 260 US dollars, can it be sold? High-end steel Chinese companies dare not ask, what can't be done with ordinary wires and rods? As long as the prices of such large goods are low, international buyers are bound to flock, and later generations made in China will be raging around the world. Isn't the biggest trick that is cheap?
As for dumping at a price lower than the country of origin, the premise is an anti-dumping investigation. The world ’s annual steel output is 700 million tons, and China only accounts for one-tenth of that. It is not enough to threaten western manufacturers. Who is too busy to sue you for dumping? At that time, western countries were anxious for dumping by developing countries because it meant that they could plunder resources from developing countries at a lower cost.
"In this way, we are almost losing money and making money."
After listening to Qin Hai's plan, Song Hongxuan thought about it in his heart, and said so. The raw materials of Beixi No. 2 Iron and Steel Plant and Cenzhou No. 2 Iron and Steel Plant come from overseas. The cost of raw materials, freight, man-hours, energy consumption, etc. are added together, and the cost per ton of wire rod is almost more than 200 US dollars. If it is sold abroad at the price of 260 US dollars, the cost is well controlled, and it is barely able to maintain the capital and control it poorly. It's an absolute loss.
"This should be considered a loss-making capacity." Qin Hai said, "If we are careful, we may not be able to pay too much money. This method should be more cost-effective than occupying working capital to establish a reserve."
Such things as production capacity cannot be left aside after formation. There are many things that need to be maintained through stable production. Otherwise, it is difficult to form production capacity in a hurry. For example, the raw materials of Daqin Iron and Steel Company are from Australia. To ensure the stable supply of raw materials, continuous production is needed, otherwise people may not be able to provide raw materials when they temporarily look for mines to buy raw materials. In addition, the skilled workers required to provide a production capacity of 5 million tons of steel also need to be cultivated and maintained by the production process. These workers cannot always rest at home. Recruit them only when needed.
Ning Zhongying and Song Hongxuan are both business management people. Qin Hai simply mentioned that they understood the truth. Ning Zhongying turned to look at Song Hongxuan and asked, "Xiao Song, according to Xiao Qin's approach, can our steel company guarantee a breakeven, or even a slight savings?"
Song Hongxuan was nervously doing calculations on his laptop for a while. Only nodded and said, "If we work hard to ensure that the breakeven is not a problem. A little savings ... it depends on the situation in the domestic market."
These steel mills under the Daqin Group have always been the "cash cows" of the group. Although the profit margin is not high enough, the output is large and the output value is very high. How can one year or two make a profit of 100 million. of course. These profits are generated in the domestic market. According to Qin Hai's plan, the group immediately launched the steel company's capacity expansion plan, and then took the excess capacity to the international market to digest, grab the market with low prices, and maintain daily production. This is basically a loss-making deal. Domestic profits, foreign losses, Song Hongxuan after careful calculation, I feel that I can basically achieve a breakeven.
Domestic profits are used to subsidize losses abroad and to maintain existing production capacity. As a strategic reserve required by Wang Hongsheng, this is the plan Qin Hai disclosed to Wang Hongsheng. When talking with Wang Hongsheng, he did not calculate the loss in detail, but he believes that even if he loses, the amount is within his own tolerance.
"It's worth doing." Ning Zhongying nodded sternly, saying, "After all, we are Chinese enterprises. Whether it is a private enterprise or a state-owned enterprise, we should do our best when the country needs it. Don't say Xiao Song's side can still maintain the break-even, even if it is a slight loss, as long as we can afford it, it is worth doing. This is a matter of merits. "
"The old factory director ’s awareness is high." Qin Hai said with a smile. "My starting point is not as noble as the old factory director. I just think that at this time, I will help the planning committee and do anything in the future. In return, this business will not lose money, so I ventured to agree. "
"Of course I know this is the case." Ning Zhongying said with a gaze, "But when we talk to the Planning Commission, can we say that? We must say as I said, we would rather lose our own interests , You also have to take care of the overall situation of the country, understand? "
"Understand." Qin Hai responded quickly. Actually, how could he not understand the importance of singing high-profile, but Ning Zhongying āo continued n, he must still pretend to be honest, honest, and open-minded, this is respect for the old man.
Song Hongxuan asked: "Xiao Qin, when does this incident begin?"
Qin Haidao: "It has to start right away. We will go to Chen Hongcheng together and tell him to go to Europe to buy second-hand steel equipment immediately. I estimate that the negotiation, dismantling and transportation will be completed in Cenzhou in one year. It's over. We are going to form a 5 million tons capacity, and time is still very tight. "
"I thought of another question." Song Hongxuan said, "We have formed such a large capacity mainly to cope with the market fluctuations during the price reform. When the price reform is completed, what about our surplus capacity?"
"Haha, you can rest assured." Qin Hai said optimistically, "After the country releases the unification of the means of production, the economy will definitely see a big increase, and the demand for steel in the market will double and increase. With a production capacity of 5 million tons, for the market, it is only a small amount of money. "
"Are you sure?" Song Hongxuan asked with a flash of light in his eyes. As the general manager of a steel company, he certainly hopes that the company's production capacity is better.
"I'm sure," Qin Hai replied firmly. This is the self-confidence of the people who know it. He knows that when the real estate industry develops in the country, the country ’s steel demand will reach 600 million tons a year. What can 5 million tons be?
Song Hongxuan said: "If so, why don't we let Chen Hongcheng import more equipment? For example, instead of 5 million tons, but 10 million tons, what do you think?"
"You are really greedy, with a capacity of 10 million tons, how much iron ore will be consumed in a year? Can Cenzhou Port be able to afford it?" Qin Hai reprimanded with a smile.
Song Hongxuan said: "Why is it necessary to restrict it to Cenzhou Port? We can go to Hongyuan and Haidong to build new factories. These places are coastal provinces. Iron ore can be reached directly by sea. It is much lower, which also helps us to control the ex-factory price of steel. In fact, I always wanted to move the steel industry to these provinces, but I could n’t find an opportunity. Now we are helping the State Planning Commission to do things and let It ’s not overkill for us to coordinate a few pieces of industrial land?

"You're too dark!" Qin Hai said jokingly, "Is this a robbery while on fire?"
Ning Zhongying interjected: "Even if the robbery is taking place, I think Director Wang is willing? A piece of land is only a matter of issuing a document to the State Planning Commission. In exchange, we reserved it for the Planning Commission. For the production capacity of several million tons of steel, Director Wang will definitely be able to figure this out clearly. "
"It's up to me." Qin Hai said in an overwhelming manner. "Lao Song, you immediately make a plan to see what equipment you need to buy, how large it is, and, your ideal factory address Where do I list a few alternatives, and then we start to implement. On the planning committee side, I went to Director Wang, and he dare not give me land, and I don't recognize the 10 million tons of steel. "
Ning Zhongying and Song Hongxuan laughed dumbly at the sound of Qin Hai gritting his teeth. They knew that Wang Hongsheng would definitely not embarrass Qin Hai in this matter, and Qin Hai's appearance of a desperate Saburo was really redundant. However, in addition to the long-term vision of this young chairman ~ EbookFREE.me ~ plus a mysterious technology, there is no merit in specific business management, allowing him to coordinate and coordinate high-level relations. , Can also be considered as the best people. As for purchasing equipment, building factories and maintaining daily production, handing it over to Miao Lei is more reassuring than giving it to Qin Hai.
In the next two days, the group held a series of meetings to arrange the work tasks of each branch in the future and negotiate the cooperation between different companies. Matters related to the expansion of steel companies were also arranged at the meeting.
Among them, the most important task is the Red Sea Company in charge of overseas affairs. The company must not only purchase second-hand steel equipment in the European market, but also contact Australian mining companies to determine the increase in raw material imports. In addition, it must find international steel sellers to sell Chinese steel to them. Chen Hongcheng received these tasks instead of complaining, but was very happy. Because the more tasks, the greater the importance of Red Sea in the group, which he would like to see.
Many people have questioned the large-scale expansion of steel production capacity since the establishment of the group, fearing that excessive production capacity could not be digested, resulting in idle equipment. In this regard, Qin Hai, Ning Zhongying, and others did not explain too much, but said that it was an important collaboration between the group and the state ministries and commissions, without revealing specific content. Regarding the price reform, it is still a state secret. It is not possible to disclose it too early. To be continued ...) ()