Of course, Duke's efforts also quickly achieved results, at least Cai Siqiang was very happy.

"Duke, the military's orders for special steel in Xincheng have increased significantly. Special steels need at least 300,000 tons this year. According to the existing production capacity, our capacity gap is very large. The technical transformation project of newly put into production of 100,000 tons of special steel cannot meet the requirements. Moreover, there are still several automobile companies under Qin Tairan's military equipment company, and the demand for high-end steel is also very strong, and they are still relying on imports." Cai Siqiang, who received the news, was excited to find Duke.

"Our Xincheng Special Steel must further expand its production capacity. Judging from the urgent demand now, it is obviously too unprofitable to build new production capacity. I mean we acquire a new medium-sized steel company and then carry out technical transformation on this basis, so that new production capacity can be formed quickly."

Although Duke rarely cares about business matters, it involves a large amount of capital operation. Cai Siqiang always discusses with Duke in advance. Although Duke always follows his plan every time, this is an attitude issue. Cai Siqiang can cooperate with Duke harmoniously, and it has to be said that he has mastered the degree of these details very well.

After hearing Cai Siqiang's plan, Duke smiled. He had been busy here for so long. It would be strange if Mr. Liu didn't make any moves. With such a large-scale purchase order, it is estimated that the military's actions to transform existing equipment will not be too small.

The latest super-high hardness special steel developed by Xincheng Special Steel is immediately effective in improving the armor of large main combat equipment. Some models that are about to be retired may not move again, but the latest models of main combat tanks and other things will definitely be upgraded and modified. For this demand alone, there will be at least tens of thousands of tons of special steel.

What's more, the military equipment company also owns its own automobile industry, which is also a huge consumer of special steel. If all these orders are handed over to Dushi Heavy Industry, then Dushi Heavy Industry's special steel business will not be able to make a big progress without making a leaps and bounds.

In this case, of course, you need to work hard.

"You have the final say in business," Duke said to Scott Choi. "If there is a technical matter, I will solve it."

"Haha, actually I already have an acquisition target, Southwest Dacheng Steel Group, which is a medium-sized steel enterprise. Now it produces ordinary steel annually, with annual sales of more than 20 billion yuan, profit of about 200 million yuan, and net assets of about 4 billion yuan. At the current price, the acquisition investment is about 5 billion to 5.5 billion yuan.

After the acquisition, if about 20 billion yuan of technical transformation funds are invested, a new special steel production capacity of 800,000 tons can be formed within three months. With the original production capacity, Xincheng Special Steel's production capacity in special steel can exceed one million tons at once; in addition, it will form a 100,000 tons of production capacity in special alloys. According to the current price, the annual output value of Xincheng Special Steel will exceed 60 billion yuan and a profit of more than 12 billion yuan."

"You can do such a good thing, you can do it." Duke was a little surprised. Cai Siqiang said these things in such detail, obviously not aimlessly. "Has he encountered some obstacles?"

"You are a genius, you can guess it's all right. There is no problem with this project now in local governments and provinces. After all, not only does the scale of the funds we invested, but the GDP has been directly expanded several times. The most important thing is that the tax revenue brought to the local government is dozens of times the original one. The local government is stupid and disagrees." Cai Siqiang flattered Duke in a small flattery.

"However, when this merger plan was reported to the National Development and Reform Commission, it was stuck because this thing did not meet the national steel production capacity layout. Xincheng Special Steel was not allowed to expand its production capacity." Cai Siqiang said in frustration.

"The province and local governments have tried their best to run this project with us, but it is still useless. News from senior executives in the province said that the executive vice premier in charge of the Development and Reform Commission now has a close relationship with the three major steel groups. If Xincheng Special Steel is allowed to implement this plan calmly, the market share of high-value-added high-end steel will be occupied by Xincheng Special Steel.

You should know that even Baosteel Group, the leader in steel, has more than 300 billion yuan in operating income per year, but the total profit achieved is only more than 10 billion yuan. If Xincheng Special Steel continues to do this, the annual profit champion in the steel industry will soon change hands in two years. So the three major steel groups will be dispatched together to prevent the National Development and Reform Commission from approving our acquisition plan."

The Executive Vice Premier is one of the nine elders. The power of this existing interest group in the steel industry is quite powerful. After listening to Cai Siqiang's description, Duke realized that during the more than a month of his concentration in technological breakthroughs, Cai Siqiang was not idle, and together with the province, he was all taking on the super bosses of the nine elders.

It seems that Mr. Liu is not wrong at all. Now, every step forward will lead to huge obstacles and strongly blocked by existing interest groups.

"Have you ever contacted Mr. Liu?" Duke asked.

"Of course, the director of Mr. Liu's office personally came forward on behalf of Mr. Liu to discuss with the National Development and Reform Commission, but he still encountered a soft nail." Cai Siqiang shook his head and said with a wry smile, "The interests are too important, and there are nine elder-level figures behind him. The National Development and Reform Commission has basically no pressure to face the director of Mr. Liu's office. If he doesn't give face, he won't give it. The national industrial layout is in the hands of the National Development and Reform Commission. Who can do anything to them?"

"It's useless for Mr. Liu's office director to go out, so what can you do to find me?" Duke frowned and thought for a while after hearing Cai Siqiang say this.

"You have a different position in Mr. Liu's mind," Cai Siqiang certainly knew the agreement between Duke and Mr. Liu, so he said bluntly, "We go to the top to find relationships. It is usually difficult to see Mr. Liu's face, so just sending the office director to say hello, this seems to be a little underestimated. So the people from the Development and Reform Commission decided to take the acquisition."

"If you go out to find Mr. Liu in person, it shows that you have a strong determination in this regard, then there is no problem in promoting Mr. Liu to support him strongly." Cai Siqiang said. In fact, there is another sentence that was not said, that is, Cai Siqiang really hopes that Mr. Liu will use military equipment as an excuse to force the reform and subjugation.

Cai Siqiang knew very well that he was able to produce several special steels that were newly developed by Xincheng Special Steel, and even if they were imported, they could not buy them. Mr. Liu and others didn't say much. They just needed to mention the procurement demand for special steel that could not be purchased abroad and other domestic steel companies could not produce. When they reported to the No. 1 Chief, I believe that the Development and Reform Commission would definitely not be able to bear it.

But in this way, it means that Mr. Liu and the other side of the Executive Vice Premier are torn apart, and the Executive Vice President is likely to be promoted to No. 2 in the next term. Mr. Liu's doing so will be very unfavorable to the future relationship between the military and the government.

It is estimated that it is because of the serious consequences that Mr. Liu will not take action personally, and the whole scene will eventually become an uncontrollable situation.

From Cai Siqiang's perspective, Xincheng Special Steel's merger plan has great benefits, with the annual output value of the steel industry reaching more than 3 trillion yuan. Although most of it is the Red Sea market for ordinary steel, even if there is only a share of special steel with more than ten points and twenty points, the entire market size of special steel is as high as more than 300 billion yuan to 40 billion yuan.

Most importantly, most of the profits in the large steel market are concentrated on these special steels. Judging from the current development momentum of Xincheng Special Steel, if steel is successfully acquired under Xincheng Special Steel, Cai Siqiang estimated that after completing the entire technical transformation project, it will not take long for Xincheng Special Steel to double its sales again.

In other words, Xincheng Special Steel is likely to run forward in just a few years and quickly enter the 100 billion sales club. For its competitors, this is simply a nightmare. Overcapacity of ordinary steel has been around for a long time. In this case, most manufacturers lose money in the production and sales of ordinary steel, but if they don’t sell it, they will lose even more, causing some steel companies to sell at losses.

The booming business of the steel industry is the result of the booming domestic infrastructure construction and real estate proliferation that were in full swing in the past few years. Now the real estate market is in a downturn, and steel companies that rely on real estate construction are obviously beginning to usher in a new period of sluggish demand.

In this case, the high-end special steel market is obviously more important for steel companies. The three giants originally had the advantage in this regard, but now they are being penetrated by Xincheng Special Steel. The three steel giants are completely unable to keep up with Xincheng Special Steel in terms of product quality and performance. So if Xincheng Special Steel comes in and shows its strengths, then this high-end market has nothing to do with the three giants.

Faced with such a situation, why are the three giants willing to make concessions easily?

To be honest, after Duke understood Cai Siqiang's plan, even if he hated this threatening negotiation in his heart, the current situation is like this. If he does not use extraordinary means, the matter will be delayed indefinitely by the superiors. The longer the time, the more unfavorable it will be for Xincheng Special Steel.

When the three giants took a strange trick to discover the detailed technical information on the development of new materials for Xincheng Special Steel and improved their own production processes, Xincheng Special Steel completely lost this once-in-a-lifetime leapfrog development opportunity.

Regarding this, the three giants can see that Cai Siqiang can't see it, so Cai Siqiang continued to prepare for a forced breakthrough even as the director of Mr. Liu's office could not handle it.
Chapter completed!