bonanza

Chapter 698 Soybeans
"Self-provided power plant?" Yang Dongsheng repeated the term in his mouth.

The self-provided power plant was an emergency measure launched in the 80s when our country was short of power.

At that time, the power supply of the public power grid was insufficient, and the switch was turned on every three days, which had a great impact on production. Therefore, the government encouraged "multiple power plants", so various high-energy-consuming enterprises set up their own power plants one after another.

In the late 90s, after ten years of rapid development since 1988, our country's power generation has risen rapidly, and the construction of self-provided power plants has stopped.

By 2001, the state-owned power plants even experienced an oversupply of electricity due to the rapid expansion before.

Relevant departments shouted the slogan of no new power plants within ten years!

But the slap in the face came too fast. No one expected that the economy would recover so quickly, and the demand for electricity increased so sharply. Now the whole country has entered an era of electricity shortage again!

Coal mines have always been big consumers of electricity. Each ton of coal consumes 40 kilowatt-hours of electricity. A coal mine with an annual output of 500 million tons consumes 2 million kilowatt-hours a year.

And that's just the electricity used for production!

"How long does it take for a self-owned power plant to go through the procedures?" Yang Dongsheng asked.

In the 80s, our country’s power generation technology was still very backward. In addition, at that time, a company could not use much electricity, and the self-provided power plants were mainly small units.

These units have high energy consumption and serious pollution, so the state has gradually tightened the approval for self-owned power plants.

"The construction of self-provided power plants now needs the approval of the provincial department! But I have an expedient plan. We can use the name of coal mine emergency power supply to build a batch of mobile generator sets first. I guarantee that the power will be used from the time the order is placed to the mine. , At most half a month! There is a mobile unit to support it, and then slowly wait for the approval of the self-owned power plant, so there is no need to worry!" Vice President Wang said.

"You're charging two for one dim sum!" Yang Dongsheng put down his teacup.

Vice President Wang saw that Yang Dongsheng had no intention of objecting, and continued, "In addition, the production capacity of electric furnace steel and electrolytic aluminum in our country has increased sharply in the past two years. Last year, the national output of electric furnace steel was close to 5000 million tons, and the output of electrolytic aluminum also exceeded 600 million tons! This is a huge market! As far as I know, many metallurgical companies also have coal mines, and we can do a turnkey project!"

"This won't work!" Yang Dongsheng flatly refused, "The coalbed methane mining technology and license belong to Alice! When it was granted to us, it was stipulated that we can use it, but we cannot transfer it without permission. But if they are willing to buy coalbed methane from us, We could sell them gas turbines and let them build their own power plants!"

Vice President Wang didn't know how Yang Dongsheng's coalbed gas came from, so he made such a suggestion.

After discussing for a while, Yang Dongsheng called Director Li in the office and began to make a summary.

The three of them took out their small notebooks in unison.

"The first is the self-provided power plant. If we want to do it, we will build a demonstration project and show them the strength of our Dongsheng Heavy Industry and Dongsheng Mining! This matter will be handed over to Vice President Wang, Vice President Zhao, and Vice President Yang Let’s do it, and Director Li remembers to inform Vice President Yang to come up with a plan as soon as possible!” Yang Dongsheng stretched out his second finger, “Second, we should not only increase revenue, but also reduce expenditure. Our company has always been a big consumer of electricity, and we Coal consumes nearly 40 degrees of electricity, what about Huashen? As far as I know, it is less than 30 degrees, and I am going to hold an energy-saving competition throughout the company. 40% of the electricity costs saved will be returned to each subsidiary as a bonus!"

After dealing with this matter, Yang Dongsheng met with several groups of guests, and the whole morning passed quickly.

After having lunch at noon and taking a short break, Vice President Jiang from Dongsheng Foods came over as soon as he got to work.

"Mr. Yang, I feel that this year's form is a bit wrong!" Vice President Jiang said.

"Why not?" Yang Dongsheng put the pen on the table.

"In the past month, at least one-third of the refined oil crushing companies that we have cooperated with have gone bankrupt or are on the verge of bankruptcy!"

"It's so serious, what happened?"

"They..." Vice President Jiang didn't know how to describe it for a while, "It seems that the group has been tricked!"

In 1999, in order to join the WTO, China signed the "Sino-US Agricultural Cooperation Agreement" with the United States, liberalizing the soybean market.

In August 2003, before the U.S. soybeans went on the market, the U.S. Department of Agriculture, which was in charge of production quotas for agricultural products, issued a message saying that due to the weather, the U.S. soybean harvest might be poor in the next year, so it decided to reduce soybean production.

As soon as the news was released, soybean prices in China rose accordingly.

The United States is the world's largest soybean producer. In 2003, the soybean output was nearly 8000 million tons, accounting for 2% of the world's total output of about 40 million tons.

At that time, China had to process 6000 million tons of soybeans every year, but China's output was only about 1800 million tons, and the shortfall of soybeans was mainly imported from the United States.

2003年8月大豆还只有2300元一吨，2004年3月的时候，就涨到了4400元一吨。

The US Department of Agriculture also announced that it will not take measures to increase production.

The four major grain merchants, Aidimeng, Bunge, Cargill, and Louis Dreyfus, took the opportunity to spread panic, claiming that soybeans may exceed 5000 yuan per ton, or even 6000 yuan.

Haven't China's domestic soybean crushing companies seen such a situation before joining the WTO for a few years?In the futures market, 4000 million tons of soybean futures were snapped up at a price of about RMB 4300 to 800 per ton.

Due to lack of experience, Chinese companies have not even done hedging.

In less than a month, the U.S. Department of Agriculture announced an increase in soybean production, and the price of international soybean futures fell accordingly. It has now fallen to nearly 2200 yuan per ton. On average, Chinese soybean crushing companies will lose almost 2000 yuan per ton.

If you bite the bullet and eat the 800 million tons of soybean futures, you will have to pay 160 billion yuan, which is simply unaffordable for Chinese crushing companies.

But if the contract is breached, the claim will only be higher!
Unless the country can ruthlessly withdraw from the WTO for these squeezers, there is only one way for those squeezers who take over at high positions - bankruptcy.

"Immediately buy a batch of crushing companies ahead of foreign capital. If all of China's refined oil crushing companies are controlled by foreign capital, we will have a hard time in the future!" Yang Dongsheng said.

These companies are the largest and most technologically advanced squeezers in China, otherwise they would not have the money to set foot in the international market.

Dongsheng Food not only grows soybeans, but also grows peanuts, corn, rapeseed, sunflower, sesame and other oil crops.

"Mr. Yang, are we going to enter the refined oil crushing industry? But the genetically modified seeds we have developed are not yet stable, and the cultivation of genetically modified soybeans is not allowed in China. However, the several non-genetically modified soybean varieties we are currently planting, the yield per mu, The oil yield is not as high as genetically modified soybeans!"

(End of this chapter)