Chapter 625 The chain reaction of soaring steel production(2/2)
In just one year, Daye Iron and Steel Company has single-handedly increased the national wrought iron production by more than three times. More importantly, this is just the beginning.
The internal production expansion plan of Daye Iron and Steel Company is still being implemented. Once the expansion is successful, the wrought iron production capacity of Daye Iron and Steel Company alone will be equivalent to twice the total wrought iron production of the country in the past fourteen years of Chengshun!
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The Dachu Empire not only has Daye Steel Company, but also Dangtu Steel Company, Liaodong Steel Company, Liaoyang Steel Company, Qiongzhou Steel Company, Tianjin Steel Company and more than ten medium and large steel companies.
Moreover, these steel companies are under the direct jurisdiction of the Ministry of Industry, and the Ministry of Industry has taken the lead in contacting these steel companies directly under the Ministry of Industry to negotiate. Each steel company obtained the rights of Daye Steel Company by paying patent fees.
The patent authorization of the stirring method is now also making relevant technical preparations.
It may not be possible this year, but by next year, these steel companies will also gradually adopt the Daye mixing method to produce wrought iron.
By then, the Da Chu Empire's wrought iron production capacity will show explosive growth.
Nowadays, the Steel Department of the Ministry of Industry has begun to worry that major steel plants are expanding production, but coal production capacity and iron ore production capacity are insufficient. By then, there will be iron-making plants, but there will be no coal and iron ore.
Blind for nothing...
In addition, they are even more worried that increasing the production capacity of wrought iron by more than ten times or even more in just one or two years will result in a surplus of wrought iron that cannot be sold.
Although the domestic demand for iron products is large, it is not unlimited. If it cannot be sold after expanding production, wouldn't it be doomed...
For this reason, many people in the Steel Department of the Ministry of Industry are very worried.
In the end, the people from the machinery company next door asked them to relax: as long as the price is cheap enough, the domestic machinery industry can charge as much as they want!
Nowadays, domestic major factories have almost endless demand for machinery and equipment. However, because the machinery and equipment are too expensive, many factories cannot afford it, or are reluctant to buy so much.
However, if the prices of upstream iron materials are reduced, then their machinery industry will naturally follow suit and rely on low costs to expand the total sales of various types of machinery and equipment. This can also further reduce the costs of end products of various downstream factories, and these end industrial products
The price is lower and more markets are gained.
To sum it up, there is one sentence: I am not afraid that you will have too much iron, but I am afraid that you will not lower the price!
If it were capitalists who came here, they could spit on these officials of the Machinery Department: Why should I lower the price? Why should I only make ten yuan when I can make a hundred?
But the factory managers of the major heavy industries in the Chu Empire were not capitalists, but officials!
The Ministry of Industry is not a consortium, but an industrial department of the empire!
Therefore, after a round of discussions between various departments within the Ministry of Industry, they happily made the decision to reduce prices!
It’s not just the price of wrought iron that has dropped, but also a range of downstream products, such as machinery and equipment and various iron products, that have seen comprehensive price cuts!
Several people in charge of the light industry also said that with the price reduction of equipment and the reduction of production costs, they can also reduce the prices of light industrial products such as cloth, which will benefit the people and further expand the export price advantage of the empire's products.
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If other countries or forces, especially the princes in the areas where cotton cloth is mainly produced in several handmade workshops in India, knew about this meeting, they would definitely be furious...
Damn it, Chu Manzi’s cotton is already cheap enough, but if you want to lower the price...then what a joke are they!
Nowadays, a large number of employees in the handmade textile industry on the Indian Peninsula are almost unable to survive, and they can barely survive by relying on the trade protection of the local princes and nobles.
If the price of cotton cloth from the Da Chu Empire continues to drop... By then, I am afraid that local trade protection will not be able to prevent the widespread destruction of the cotton textile industry in the Indian peninsula.
This is the power of industrialization. In fact, the Chu Empire did not specifically target the Indian Peninsula...it did not even target the cotton spinning industry of any indigenous country or force.
The cotton spinning industry of the Dachu Empire mainly supplied domestic consumption, and the proportion of exports was actually very low.
With a population of more than 200 million, no threat of war, sustained economic development, and the beginning of industrialization, the mainland of the Chu Empire is the largest consumer market on the planet!
Even if it is silk and porcelain, which are traditional export commodities in China, most of them are actually sold domestically, and the proportion of exports is not high.
The same goes for cotton!
The production and operations of most textile companies in the Chu Empire have always focused on the domestic market, especially the two bitter rivals Hanyang Textile Company and Su Qin Textile Company. The fierce competition between them has always centered on the domestic market.
In progress.
As for exporting, they also do it, but that's all natural.
Not to mention a large number of local small and medium-sized textile companies in the country. They can't even reach other domestic markets. They basically rely on the local market to survive. Exports are too far away from them.
Therefore, the proportion of cotton cloth exported by the Dachu Empire was actually not large, but even such cotton cloth exports still directly defeated the handmade cotton spinning industry in neighboring countries!
In the Fuso Islands, there are no practitioners in the handmade cotton spinning industry in those cities. Those who used to either changed careers or jumped into the sea...
The same is true for the Nanyang Peninsula and the islands. Especially with the strong expansion of the Chu Empire in Nanyang and the war that forced all countries to fully open their markets, the local handmade cotton spinning industry was completely destroyed one by one.
On the Indian Peninsula, even though some indigenous princes implemented trade protection measures, the cheap cotton from the Chu Empire still had a strong impact on the survival of the handmade cotton spinning industry on the Indian Peninsula.
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After all, the Indian peninsula is quite large, and not every prince has a large-scale handmade cotton spinning industry. For many Indian princes, cotton is imported anyway.
Asking the nearby prince to import cotton cloth also costs money, and it is equivalent to subsidizing the enemy. The most important thing is that it is expensive.
It is much cheaper to import cotton from the Da Chu Empire, which can save a lot of money. Moreover, since the Da Chu Empire is far away, there is no direct threat to them, so they can do business with the Da Chu Empire with confidence.
The Indian peninsula is not a monolith, which gives the Chu Empire's cheap cotton cloth room to enter the Indian peninsula market.
This is still the same as before!
If the price of cotton cloth is further reduced, I am afraid that the entire Indian peninsula's handmade cotton textile industry will suffer a devastating impact, even with so-called trade protection policies.
What's more, the Chu Empire will not always tolerate a small group of indigenous people in the Indian peninsula and continue to infringe on the legitimate interests of the merchants of the Chu Empire.
The Navy has long made a promise to the domestic industry. Well, basically what the Navy boss said when chatting with the new Minister of Industry, Ji Dehua: Sooner or later, when we have the opportunity, our Navy will help the domestic industry to achieve justice.
Yes, when the time comes, we will stuff those indigenous princes who play trade protection into the barrels of naval guns and launch them into the Indian Ocean!
Well, our Navy has been a little tight lately. How about you tell Songjiang Naval Shipyard and Guangzhou Shipyard and ask them to lower the price?
Today's battleships are too expensive. Can they be worth dozens or millions less?
However, Ji Dehua, the new minister of the Ministry of Industry, ignored him directly: Everything else is easy to talk about, but there is no money to talk about...
Besides, he, Ji Dehua, doesn’t have the power to directly ask his subordinate shipyards to cut prices!
Although the Ministry of Industry directly manages major shipyards, it is only responsible for macro management and payment, and direct coordination among enterprises... but does not involve the specific operations of enterprises under the Ministry of Industry.
Enterprises under the Ministry of Industry, including Songjiang Naval Shipyard and Guangzhou Shipyard, the two largest and most technologically owned government-run shipyards in the country, operate independently and are responsible for their own profits and losses.
And when it comes to money, things are even more difficult to deal with. Ji Dehua dares to ask the shipyard below to lower the price, and the shipyard dares to ask him to pay for it... Otherwise, don't dream that they can sell their own interests.
The huge shipyard has thousands of people, and behind it there are a large number of lumberyards, transportation, wood processing plants, machinery and equipment, ropes and sails, and many other suppliers, all of which rely on the navy's shipbuilding funds.
You, Ji Dehua, just lower the price if you say it will... This is impossible.
The Minister of Industry may seem awesome, but Ji Dehua is now just a co-minister, not a counselor.
Even if Ji Dehua is the Minister of Counselor, if he dares to make this request, he will dare to let Ji Dehua support so many people!
Therefore, Ji Dehua directly ignored the navy's request... and then pretended that the domestic market was enough for me to worry about, and the foreign market did whatever it wanted.
As for the Indian Peninsula, who doesn’t know that your navy dreams of opening up the Strait of Malacca and then setting foot in the Indian Peninsula!
As for our Ministry of Industry, who told you that we are keen on the market of the Indian Peninsula... We are too busy with the domestic market now, how can we have time and energy to toss in foreign markets!
The foreign market is actually just like that, well, especially the market in the Indian peninsula, it has the best, but it doesn’t matter without our Ministry of Industry...
Chapter completed!