Chapter 6 Finding a Way
After arranging all the matters in Gaia's world, Zhang Quan carried his backpack and returned to the modern world again. As soon as he arrived home, he quickly turned on the computer and connected to the Internet.
The biggest difference between the modern world and the era decades ago is that there is a computer information network, which comprehensively improves the work efficiency of the entire earth society and allows an ordinary person with no relationship or background to obtain information that was previously difficult to access offline.
For example, now, if Zhang Quan wants to find some information about the steel factory, then it is enough to rely on this computer and network cable without leaving home.
Not far from the ancient city, there is really a steel factory in Jian County, the county where Zhang Quan’s hometown is. Although the mountainous area in western Henan has never been famous for its abundant iron ore production, under the background of the prosperity of the local coal mining industry, some scattered iron ore veins underground have also been developed.
If these mineral veins were placed in Anshan, steel such as Baotou would naturally be unsightly, and they would not even have the value of actual mining. However, locally, they have a long history of mining and smelting. Speaking of which, it is still a tradition passed down from the era of the great *refining *steel *iron *iron".
Therefore, this county not only has steel plants, but also not only one. There are always three or five in all towns. These small steel plants are not enough to compete with large steel mills of high scale under the current market environment. However, with the small ships, they can turn around and target some special steel application markets, and are specifically designed to meet the local market, and they can still have a certain competitiveness.
Of course, these steel mills are all private without exception. Now, Zhang Quan’s initial development goal is actually aimed at them.
After checking the specific information online, I felt a little clear. Then, Zhang Quan was not in trouble and went on the road with his backpack on his back and ran straight towards the first small steel factory he was interested in - Maling Steel Factory.
When I arrived at the place, I saw the owner of the steel mill and explained my purpose directly, which surprised Li Gensheng, the private owner of the Maling Steel Plant. A stranger suddenly came to sell his iron ore. This was not surprising. You should know that the procurement of these local steel plants has always been based on the principles of local supply and local digestion to organize production. It is basically self-sufficient.
This sudden arrival of such a person is somewhat of a breaking market rules for them.
But even so, after looking at the ore specimens brought by Zhang Quan, they did not push him out. No, the conditions given by Zhang Quan were really good: the iron ore brought by Zhang Quan was simply amazingly excellent. The average grade of iron ore above 60 can be called a top-notch in China, even if it is abroad, it can definitely be called high-quality. Anyone in the industry will not refuse. And more importantly, Zhang Quan's price of such high-quality iron ore is actually lower than that of those imported high-quality iron ore. It is truly high-quality and low-priced, and the competitiveness is not ordinary.
You should know that such high-quality iron ore, even good things that can enter the laboratory without any screening, means that the process of steel smelting will be greatly simplified, the cost will be greatly reduced, and the future sales profit will inevitably increase exponentially. In the future, using such good ore, the factory can also smelter better steel varieties and enter the prospect of a higher-end and high-profit special steel market.
This made Boss Li, who had been struggling in this industry for most of his life, a little confused.
The first reason for the entanglement is that if Zhang Quan’s goods are really used, then he worked hard to build the source of local ore for decades before, it would inevitably be ruined. Although the older generations said they were reluctant to let their children go and could not trap them, this would undoubtedly reduce Boss Li’s reputation in the local industry and indirectly affect the way out of his factory products.
The second reason is that once Zhang Quan's approach is built, the smelting technology used by different iron ores will naturally be different. In fact, every new ore requires almost thousands of experiments to find its best smelting method and to refine the best steel.
Of course, that means that Boss Li's product line may also change, and after the new product line is established, its dependence on Zhang Quan's ore supply will be greatly enhanced, which is equivalent to giving someone a handle! But Zhang Quan is a completely stranger to Boss Li. He is not aware of his roots or a young man, and he has not yet established enough trust between the two. If there is a slight change in the supply of Zhang Quan at that time, it will be a damaging matter, which makes Boss Li Gensheng feel at ease.
At present, before the legal awareness and social atmosphere at the grassroots level of society were fully established, trust between private people was still crucial for private bosses to do business.
So, Zhang Quan’s iron ore is good, and it really makes people envious, but for Boss Li, this choice is actually not that simple.
To be honest, the survival of their local small steel mills is still relatively difficult, and their products are not competitive in the foreign market. The local famous coal resources. Although the quality is not excellent, the price is definitely cheap, and the relative coking is naturally low. Therefore, although the local iron ore resources have poor quality and high cost, if you neutralize, the cost of steel making is relatively balanced. Coupled with the popular local market protectionism, it is still competitive in general. These small steel mills are purely seeking to survive in the gap between the outside steel market and the local small-batch steel market.
Zhang Quan took out such good ore and promised large-scale supply. Boss Li naturally wanted it in his heart. This means lower costs, better products, and broader market share, which means more money in the future. But in this way, this will undoubtedly break the fragile supply and demand balance of the steel market in this region. It is really hard to explain whether it is a disaster or a blessing for him.
After staying in the atmosphere of being at ease with small wealth for a long time, there will naturally be fewer people who dare to change.
Boss Li struggled for a long time, which made Zhang Quan feel extremely uncomfortable.
Finally, the two of them spent a few days, and finally Zhang Quan finally figured out Boss Li’s concerns. After discussing with Boss Li, Zhang Quan was determined to make a decision and simply took out a new joint venture plan. He took out funds to invest and helped Maling Steel Plant build a production line specifically for the smelting of new ores and new steel, helping Boss Li share the pressure of fundraising, and by the way, he also demonstrated his own strength and established credibility.
Moreover, Zhang Quan also agreed that after Maling Steel Plant released new steel, Zhang Quan was willing to underwrite some of the steel to alleviate the biggest sales risks of the steel plant in the future. Now the two finally had a successful negotiation.
The result of the negotiation between the two people was that Zhang Quan invested 2.5 million yuan to occupy 49% of the shares of Maling Steel Plant. Li Gensheng used the overall shareholding of the original steel plant to account for the remaining 51%. Li Gensheng promised to invest all existing funds to establish a new production line to smelve the ore brought by Zhang Quan, while Zhang Quan promised not to interfere with the specific production of the steel plant. Of course, in the end, Zhang Quan's underwriting promise for the new steel material must be added in the contract.
In short, Zhang Quan finally let Li Gensheng put down his burden and accepted his ore. He also promised to find ways to recruit better engineers and strengthen the technical strength of the steel plant. In the view of Li Gensheng, who has been in this industry for most of his life, with such good and high-quality iron ore and without other pressure, he will not be able to make good steel?
Of course, at this time, he didn't know that the so-called high-grade ore new variety that Zhang Quan gave him was actually not just in China, and it did not even belong to this world.
For Zhang Quan, the matter he negotiated with Li Gensheng seemed to be completely beneficial to Li Gensheng, but Zhang Quan himself did not suffer any losses. He was busy with time and space trade and had no energy to involve the specific operation of the iron plant. The money he invested in was easy and was equally easy to spend. The most important thing for him was to achieve his goal. Although this combined stock operation guaranteed Li Gensheng's enthusiasm and interests, it also laid the groundwork for his specific intervention in the steel industry in the future. It is still a bit too early to do this business.
Chapter completed!