Material Empire

Qin Hai's proposal was very favorable, and there were almost no terms that Lu Dashuang could not accept.

First of all, Qin Hai is willing to come forward to raise a loan of 30 million yuan for Lu Dashuang and others to purchase a complete set of equipment including smelting, continuous casting, and continuous rolling. With such equipment, Lu Dashuang and the others can smelt Qualified steel products, so as to get rid of the state of blindly producing strip steel. Qin Hai made the same suggestion to them a month ago, but no one responded. Now, facing the firm determination of the country to govern the small iron and steel industry, Lu Dashuang and his colleagues have to consider choosing this way out up.

Qin Hai promised that the existing equipment of various small steel mills could be purchased with his money. Of course, since these devices are obsolete and outdated by the state, the purchase price has to be discounted. For Lu Dashuang and others, even such a discounted price is very attractive. Previously, the biggest obstacle they faced when considering upgrading equipment was that the original equipment could not be disposed of. Now that someone is willing to pay for it, they have no worries.

This approach is a common "trade-in" strategy in the consumer durables industry. The service life of home appliances, mobile phones, cars, etc. in some consumer families can be as high as 20 years or more, but the replacement speed of these products is very fast. In order to encourage consumers to eliminate old products and increase the sales of new products, many manufacturers will launch a trade-in strategy to buy old home appliances in consumers' homes at a relatively low price, so that they do not have the burden of disposing of second-hand products.

The purpose of exchanging old equipment for new ones in small steel mills is not to sell new equipment, but to promote the withdrawal of old equipment that does not meet the current environmental protection and energy-saving requirements from the market as soon as possible. This part of the funds comes from the country's investment in environmental protection. Compared with spending a lot of money to clean up after the pollution occurs, this method of eliminating high-pollution equipment to reduce pollution can be called dredging from the bottom of the pot, and it is a fundamental method.

Qin Hai's assistance to small steel mills is not without conditions. His condition is that all enterprises that accept the above assistance must sign a strategic alliance agreement with Daqin Group, which stipulates that these enterprises will be subject to the management of Daqin Group, and will be consistent with Daqin Group in terms of raw material procurement and product pricing.

There are thousands of small iron and steel enterprises across the country. In the past, these enterprises were backward in technology and poor in product quality, unable to compete with large steel mills, and could only occupy the low-end steel market, posing little competition threat to large steel mills. If reforms are carried out according to Qin Hai's plan, these small iron and steel enterprises will merge into hundreds of small and medium-sized steel factories with a certain scale and technical level, and become strong opponents of large steel factories. If these small and medium-sized steel mills are not restrained, they will easily fall into vicious competition, and eventually the entire steel industry will suffer.

There is another reason that Qin Hai did not explain to Lu Dashuang. He knows that the next 10 years will be a period of rapid development of China's infrastructure construction, and the demand for steel products will more than double on the current basis. China is a country with a shortage of iron ore resources. To further expand steel production, it must rely on imported iron ore to provide support. In real history, foreign iron ore magnates saw this situation and kept raising the price of iron ore, forcing China to accept it. Since various domestic iron and steel companies fought independently, they could not form an alliance to negotiate with the international iron ore giants. As a result, they were defeated by each other, and eventually suffered losses of hundreds of billions of dollars.

Qin Hai's management of the small iron and steel this time has the motivation to integrate the entire industry. The production capacity of Daqin Group, together with the production capacity of all small iron and steel enterprises, is enough to occupy half of China's steel market. If the small iron and steel enterprises can advance and retreat together with the Daqin Group, Qin Hai will have the capital to negotiate with the international iron ore giant. Every time the price of iron ore drops by 1 dollar, the Daqin Group can save tens of millions of dollars in purchasing raw materials. It only takes a little calculation to know that the current payment is worth the money.

Things like strategic alliances are not stable enough in themselves. In the face of interests, the alliance relationship will appear very fragile. If Qin Hai asked all the small businesses to form an alliance with him out of thin air, when these small businesses were required to take risks, they might regret it and shrink back. Qin Hai went on a killing spree in Xingchuan County this time, driving all the small steel mills to the brink of bankruptcy. He wanted to give everyone a warning. He wanted to let these small bosses know that he had enough energy. Any company that dares to lose the chain at a critical moment must be prepared to withstand the storm from Qin Hai.

As the old saying goes, if you don’t fight, you can’t make a deal. When you do things in the yamen, there is even the saying of “killing the power stick” first. In fact, it is for better cooperation in the future, and let the other party know in advance their own strength and possible punishment. What Qin Hai did in the previous period was to kill Lu Dashuang and other small bosses. Judging from the current results, the effect is very significant. At least this Lu Dashuang has become very docile.

Qin Hai gave a detailed introduction to Lu Dashuang about the corresponding clauses. Lu Dashuang thought about it for a while, nodded, and said, "These conditions of Chairman Qin are actually for our sake. How can we not agree?" Accept the truth. However, this matter is not up to me alone, and I have to discuss it with other factory managers.”

"Then I'll trouble Boss Lu to call it." Qin Hai said.

Lu Dashuang found the bosses of other small iron and steel factories in Dongdaogou Village, and introduced Qin Hai's real identity and the cooperation plan proposed by Qin Hai to them. Upon hearing this situation at first, all the small bosses reacted like Lu Dashuang, full of shock. Of course, there were also people who harbored suspicions against Qin Hai because of the seizure of the steel.

"Since Chairman Qin wants to cooperate with us, why do you have to make such a big circle? Several of my trucks of steel have been confiscated by you. What does this mean? In fact, you said that you have this plan, and we don't have to be so frightened. gone."

The person who spoke was Lu Quanlin, the director of another steel factory. He was the leader who gathered the villagers to attack the checkpoint last time. Because he took the lead in breaking into the security zone, he was also arrested and handcuffed by the soldiers at the checkpoint. Thinking of the horror and humiliation at that time, he felt a little out of breath.

Hearing this, Qin Hai smiled slightly, and said: "Boss Lu's words are wrong. It's not because I want to cooperate with you that I confiscate your steel products; it's because I don't want to see you go bankrupt because of the confiscation of steel products. That's why I came here to propose a cooperation plan for you. Boss Lu was wronged a few days ago, but I'm afraid I can't blame me for this. The government made a concession, which is suspected of breaking the law. The working group did not embarrass you, but restrained you briefly, and asked you to leave casually. Boss Lu should know what to do."

Lu Quanlin said angrily: "Chairman Qin, I know that you are the big boss, and you also have the central leadership as your backstage, but what you do is too deceptive. I, Lu Quanlin, want to A person with a face, I won’t pay for my smile when someone slaps me in the face.”

"Really?" Qin Hai still had a smile on his face. He looked at the other small bosses and asked, "Is there anyone else who thinks the same as Boss Lu Quanlin? If you feel that accepting these conditions is a disadvantage, I Never force it."

"I..." A small boss with a good relationship with Lu Quanlin moved, as if he wanted to say something.

"What are you, you are stupid!" The companion next to him grabbed him.

"What are you doing?" the little boss asked his companion dissatisfied.

The companion glared at him, put his mouth to his ear, and said in a low voice: "Lu Quanlin commits crimes and seeks death, and you plan to die with him, don't you? Think about it, now we can do what Chairman Qin said. What’s the other way out?”

"But he doesn't behave properly." The little boss said.

The companion sneered and said: "Just pull it down, who in our house is doing things properly? What kind of steel is that you specially smelted? Do you dare to use it for building your own house? People like us are not dying. Well, you even found a way out for us, so you can just miss him for the rest of your life. If you meet someone who is equally capable but doesn't care about our lives, don't you have to endure it?"

Everyone in the room had almost few thoughts. After witnessing the entire governance operation, everyone had a different understanding of Qin Hai. Others may think that Qin Hai is just a successful company with a more flexible mind and rich connections, that's all. But these little bosses know that this guy is a lone star of the devil, and with his small body, it's better not to compete with him.

Seeing that no one came forward, Qin Hai turned his face to Lu Quanlin, and said coldly: "Boss Lu, you still have a choice now. If you are willing to work with everyone, raise funds to build a steel factory that meets the scale requirements, and get out of trouble together." , then stay here and discuss an operation mechanism. If you feel that you are at a disadvantage in this matter and disdain to be with me, Qin Hai, then please go ahead."

"I..." Lu Quanlin hesitated for a moment. He already regretted it a little, but his inherent stubborn temper overwhelmed his rationality. He stomped his feet and said, "I won't be your pug!"

After that, he stood up and strode out of the venue. The others looked at his back and were silent. Lu Quanlin's words can be regarded as a map shot, calling everyone who is willing to cooperate with Qin Hai a pug. Everyone couldn't accept this statement, but they felt disapproving in their hearts: With Qin Hai's wealth, there are many people who are willing to be a pug for him, not everyone is qualified. If you want to save face at this time, you will regret it in the end.