The Industrial Giant Reborn.

Chapter 488 Investment Planning
"A billion-dollar super factory?" Li Chuanfang felt like he was hit by a huge boulder and almost stopped. This news was really shocking.

You know, the largest investment introduced in the country was the Beijing-Tianjin-Tangshan Expressway, a domestic joint venture with a total investment of about US$10.8 billion. However, because it is a large-scale infrastructure project, half of the investment is domestic and foreign, which means that the foreign investment is only The investment is about US$5 million, and it is invested over many years. A large part of it also comes from loans. Of course, loans can also be regarded as investment from foreign parties.

The factory is another matter, because the value of the factory does not mean the amount of investment, but the annual production capacity after completion. A one-time investment of 10 billion US dollars in a project is the same as a factory that manufactures [-] billion US dollars per year. This is a completely different matter for US dollar products. The value that the latter can generate will far exceed the former.

Of course, it can only be said to be a direct value. Indirectly, a highway that connects half of North China is definitely worth more, and the economic effect it can drive may be even greater. But the factory obviously plays a greater role in local cities, especially in If most products are exported, it means a steady stream of foreign exchange. With this money, you can build a highway yourself. But for a highway, it is obviously impossible to operate it in reverse to make money and open a factory. As long as there is infrastructure Money can build it, but factories obviously cannot.

"Are the products mainly for export?" Li Chuanfang asked quickly.

"Is there such a market in China that we can digest it all?" Chen Zhiwen said with a smile. He would also like to invest everything in the domestic market, but the reality is that it is impossible. At present, anything that can be made by oneself in China is unlikely to be made by outsiders. , except for two situations.

First, it is similar to the previous investment model of its own manufacturing group, which can stabilize the foreign exchange balance. In other words, only one dollar of exported goods can be sold domestically with the same value of goods. In this way, foreign-funded companies cannot take away US dollars in foreign exchange. In this case, the country does not mind giving up part of its market, because it can bring employment, foreign technology, management models, etc.

The second is that in order to stabilize the trade balance with other countries, it is necessary to import foreign materials. After all, in transactions between countries, no country will only buy things from you without selling things. There is a balance here, unless it is a special product such as petroleum and military industry. Therefore, when too many goods are sold to a country, the domestic government can only purchase part of the country's supplies, which are usually needed domestically, such as steel, aircraft, Cars, home appliances, etc.

Chen Zhiwen naturally cannot enjoy the second option, so he can only choose the first option. Considering the future sales of his brand overseas, the domestic market may not be able to keep up, so this factory will definitely still focus on exports. Lord, under the limited and reasonable policy, Chen Zhiwen will still strive for the best interests for himself, but this will be a matter of talking to the central government's top officials and has nothing to do with Shenhai City.

"Then Chen Sheng is planning to invest in Shenhai City?" Li Chuanfang's heartbeat almost doubled. A factory with an annual output value of one billion US dollars. Apart from Daqing Oilfield, there is no other institution in China that can earn foreign exchange on such a large scale. Moreover, the total industrial output value of the entire Shenhai City last year was only US$9 million. This also includes a large number of Chen Zhiwen's factories in Shekou. Otherwise, it might not even have US$[-] million.

"Mayor Li is joking. Even I, the boss, cannot make an immediate decision on such a big matter. I will just inform you today." Chen Zhiwen said with a smile. He can actually make a decision on this kind of thing, but there is no need. , because of such a large investment, not to mention domestic countries, even developed countries such as Europe, the United States and Japan will compete for it, and local governments will also offer very high conditions.

The general process is to release the news and let interested national and local governments think about the matter carefully and figure out their own advantages, so that they can bid or take other upper-level routes. Even the central government of the mainland, faced with such news, It is estimated that many meetings will be held to discuss this matter. When it is almost done, all parties will talk again. Midea will see who has better conditions. Based on its own situation, market conditions, local economy, supply chain, etc. Various information such as talent reserves are used to select suitable ones, and then the decision is given to the boss Chen Zhiwen.And even in the end, Chen Zhiwen will definitely need to discuss and decide with many professionals.

It's one thing to be able to make a decision, but it won't do you any good. Today I said it's in the deep sea. Isn't that going to cause trouble for your group?

Here today, he only released the news through Shenhai City, letting the whole country and even other countries abroad know about it. Although he has decided to build a factory in the mainland, he will not say it out loud, otherwise the central government in the mainland may recognize the matter. That's not in your own interest either.When it comes to cooperation, Chen Zhiwen will try his best to ensure a win-win situation with any party, but he will not give up what he deserves.

"Yes, then I don't know, what is this large factory built for?" Li Chuanfang also returned to normal and asked. He had never led such a large project before, and he also speculated that Chen Zhiwen might just release the news through himself. After all, such a big project He will definitely report the matter to the central government. The central government, which lacks foreign exchange, will definitely win this project no matter what. However, for the central government, this project only needs to be in the country. Leaders of other cities and even provinces may not think so. .

There are now close to 20 open cities. These cities can independently negotiate cooperation with foreign investment. I am afraid the competition will be very fierce by then.

"Mainly home appliances. Mayor Li should know that our Midea home appliance business, white home appliances such as refrigerators and washing machines are mainly located in Shekou and Yanjing City, but there are no domestic factories for black home appliances and color TVs, so this investment project mainly It is a project with an annual output of more than 500 million color TVs and 500 million black-and-white TVs, including the core picture tubes in TVs and other parts factories. In addition, we will also operate global trade for picture tubes as a separate business." Chen Zhiwen said with a slight smile.

"TVs? Does Midea also sell black and white TVs?" Li Chuanfang paused and asked. He is the mayor of Shenhai City in charge of the economy. Naturally, he knows something about the big companies in Hong Kong next door. As far as he knows, Midea's home appliance business , the core is RCA acquired a few years ago, and RCA's main business should be color TV sets. "There is no such thing as Midea, but Galaxy Trading does. In many countries in South America, Eastern Europe, and Asia, our Galaxy Trading has cooperated with local purchasers or supermarkets, and there is also a huge demand for black and white TVs," said Chen Zhiwen.

Black and white TVs are basically no longer available in the markets of developed countries in Europe and the United States, and few people will buy them. However, in all developing countries, the market is huge. Midea’s previous factories were mainly in Hong Kong and outsourced to Bayan. , its own production capacity is not enough, how can it produce lower-profit black and white TV sets.

However, the development of Galaxy Trading can be said to be beyond Chen Zhiwen's expectations. With a large number of supermarket orders in Europe and the United States, Galaxy Trading's procurement supply chain has reduced costs to a very low level by virtue of its scale. Even transportation is compared with many Trucking giants sign long-term deals to cut costs.

At the same time, Galaxy Trading is also exploring markets in Southeast Asia, West Asia, Eastern Europe, and South America. Although the economies of these places are not very good, their combined scale is also very large, and the demand for some low-end industrial products is very large. The most basic It’s pliers. It’s hard to imagine that Galaxy Trading alone sells various pliers around the world, with an output value of more than 1.5 million US dollars. This is just for fun, because it has not built its own brand, it is purely a variety of procurement, quality In terms of management, it may not be as strict and professional as other formal brands.

In most developing countries, there is also a huge demand for black and white TV sets. Last year, Galaxy Trading purchased a total of 330 million black and white TV sets in Hong Kong, Taiwan, and South Korea to meet the needs of many customers. Chen Zhiwen knows this After looking at the figures, we decided to build such a factory in China.

Because the domestic demand in the future will also be very high, even if it is not possible to enter in large quantities now, it will be more than enough in the 90s after the factory is built, and it can also directly create a large number of jobs to increase its influence.

Of course, this is just by the way, and the profit will not be much. The majority is still color TV sets. Before the popularity of LCD TVs, color TVs can still sell well for another 20 years.

"So that's it." Li Chuanfang nodded. Galaxy Trading is also a super giant. As far as he knows, the various light industrial products and agricultural products purchased in the mainland each year amount to hundreds of millions of dollars, and the technical content is not very high. It can be said that the mainland government likes such orders the most.

"Currently, this matter is just an internal plan of Midea. The figures just now may be slightly different, but they will not be worse than multiples." Chen Zhiwen said with a smile: "Also, some games will be transferred from Hong Kong. machine manufacturing industry.”

Now that the domestic reform policy has been stabilized, and Hong Kong's future is basically a foregone conclusion, then its own manufacturing industry should also slowly migrate here. Otherwise, if housing prices in Hong Kong skyrocket in a few years, let alone the cost, if there are many The housing prices of employees have soared and a large number of employees have resigned, which will have a great impact on Midea's production capacity and quality.

Although employees voluntarily resigning may reduce their compensation fees, but compared with product quality and production capacity, it is only a drop in the bucket.

The color TV industry moved to the mainland in order to reduce costs and seize the European and American markets. The game industry moved has nothing to do with costs and is purely for multi-venue production to ensure that there are no problems with the supply chain.

On the Mainland side, you can invest by yourself, and on the other side in Bayan and even South Korea, you can just hand it over to OEMs. There is no need to personally participate.

"Game industry, what kind of conditions does Chen Sheng need before he can invest in our Deep Sea City? As long as it does not involve some such stipulated principle issues, we can talk about anything." Li Chuanfa became a little anxious.

Midea's game industry is much larger than the home appliance industry. Although I know it's not good to say this, I can't control that much. Give it a try, even if you fail, there is no harm.In the aftermath of this incident, it is estimated that cities across the country and even overseas countries will be competing for it, and the whole of Asia is expected to become lively.

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(End of this chapter)