Chapter 404 Business Empire
The most powerful part of the industrial assistant system is the material recycling section.
Once the furnace is opened, no matter whether it is raw or cold, the materials will be decomposed into elemental elements after entering the furnace. These elemental elements can be extracted and sold into banknotes.
At the same time, it also has the smelting function, which can smelt certain metals and non-metallic elements into materials according to mature processes and formulas. Once the furnace is opened, the same wealth will flow.
However, Chen Lidong did not use the system's furnace smelting function to output metal materials. Instead, he exchanged a large amount of devoured materials into gold coins, then engaged in scientific research to exchange equipment, built factories across the country, and realized the industrial upgrading of the Donghua system.
This is the source of Donghua’s continuous cross-border development and rolling development.
If Chen Lidong relied on the system furnace to obtain materials in exchange for wealth, he might make money faster than running a factory.
After all, there is a certain cycle in building a factory, selecting a site, establishing a project, constructing, debugging, and finally producing mature and stable products.
However, the disadvantages of selling materials are huge. You cannot develop your own hematopoiesis on a rolling basis, and you will be limited by the production capacity of the furnace.
Furthermore, if you use the system furnace to obtain materials, there must be a source. You can’t just produce so many extra materials out of thin air, right?
In addition, the system furnace also needs minerals and waste, and there must also be metal processing companies and renewable resource utilization companies as upstream to provide food for the furnace.
Now, Chen Lidong's industries have involved mining, energy, metallurgy, ceramics, cement, electricity, machinery, electronics, chemicals, semiconductors, resource recycling, construction, transportation, planting, education, technology, medical care, Internet technology...
Spanning the primary, secondary and tertiary industries, it has established a huge business empire.
As the chief steward of this business empire, Luo Hao was exhausted mentally and physically. Fortunately, the oil exploration and sales were handed over to Wang Hongbin of the Far East.
Otherwise, if I continue to bear that burden, I may really lose 10 years of my life.
During the recent period, Wang Hongbin has been active in China. His main task is investment: investing in the construction of refining and chemical plants, investing in the acquisition of gas stations, and investing in the construction of city gas companies.
In 2000, the most sought-after commodity in China was gas stations. In some big cities, the purchase price of gas stations soared three to four times within a year, not because they were particularly profitable, but because someone was snatching them up.
According to the rules of the WTO, once China joins this organization, it will reduce the import tariff of refined oil to 6% in 2002, open to retail within 3 years, and open to wholesale within 5 years.
In order to cope with this inevitable competitive situation, in 1998 China Petroleum and Natural Gas Corporation, which China had an exclusive monopoly on, carried out a major reorganization and established two major group companies, Huaxia Petroleum and Huaxia Petrochemical.
According to the plan at that time, the two major companies divided the country's oil field resources and refining enterprises, and implemented "river-based governance" with the Yangtze River as the boundary in their business.
After the establishment of the two major oil groups, they immediately began to acquire gas stations. Both companies believed that as long as they acquired all the gas stations, those multinational oil companies would have nothing to do with them.
But unexpectedly, the acquisition quickly turned into a panic buying.
The construction cost of a gas station ranges from 600,000 yuan to 1 million yuan, but now the price of purchasing a gas station has quadrupled. Gas stations in the center of first- and second-tier cities or at transportation hubs cost more than 10 million yuan.
Up to now, more than 80% of the 80,000 gas stations in China have fallen into the hands of two barrels of oil.
In this climate, it is difficult for private gas stations to survive without strong relationships. Even if they are not acquired, they may be cut off from oil supply, because 90% of the current supply of refined oil is from two barrels of oil.
Now that China has joined the WTO, the import tariff on refined oil will be reduced to 6% this year, and retail sales will be opened in two years.
So Wang Hongbin is ready to join forces with CNOOC to get a piece of the pie.
The two companies have crude oil in hand and are planning to jointly build a refinery in Echeng, southern Guangdong. In the future, oil from the South China Sea will be sent here for refining and processing.
This project is basically the only refining and chemical enterprise of CNOOC since its establishment. It has been discussed with Guangdong Province for two years.
In another life, CNOOC and Shell Petroleum cooperated to establish a refining and chemical plant, with CNOOC holding 51% of the shares. Now Far East Oil and Gas has replaced Shell's position.
The project plans to invest more than 16 billion yuan, and the investment policy has been negotiated for several rounds. In addition to land price concessions, tax exemptions, infrastructure supporting facilities and other conditions, CNOOC and Far East Oil and Gas have also put forward requirements for building 1,000 new gas stations.
At the same time, Wang Hongbin also promised the leaders of Guangdong Province that as long as Guangdong Province opens its market to CNOOC and Far East Oil and Gas, Far East Oil and Gas will build gas pipelines and gas supply stations in cities with more than 100,000 people in Guangdong Province in accordance with the methods of the three eastern provinces.
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With the rise of China's real estate market, the housing construction department has issued new regulations requiring natural gas pipelines to be reserved for new residential areas.
Many places are now beginning to develop natural gas supply markets for large cities. For example, Ning Haicheng, Vice Governor of Shandong Province, has been contacting Far East Oil and Gas.
After relying on various connections, I finally met Wang Hongbin, who "has a lot of money and is stupid".
Before Wang Hongbin understood Ning Haicheng's opinion, he patted his chest and said: "As long as Shandong Province can find the road, Far East Oil and Gas can invest in building a refinery, just like the Echeng project."
Ning Haicheng opened his mouth and wanted to explain that Lu Province only wanted to lay gas pipelines and supply stations, but the other party actually wanted to build a large refining and chemical project in Lu Province.
If the other party can really invest in a refinery, it will be pie in the sky.
A 10-million-ton refinery can easily cost 10 to 20 billion, and it is still foreign-owned. I originally wanted to drink soup, but now I can eat meat.
What to do in this situation?
Only a fool would explain, but Ning Haicheng chose to endure it silently.
After this news was fed back to Zhou Chengdong, the main leader of the province, Zhou Chengdong was also a little confused and asked Ning Haicheng: "Did Wang Hongbin drink when you met him?"
Ning Haicheng recalled it and said: "It seems he was drunk. When we met, he had just received a group of people from Chacheng, but he didn't look like he was drunk."
Zhou Chengdong frowned and said: "Well... this happened. We can't ask Wang Hongbin to argue again. We can't ask the other party whether what you said that day is reliable? I'll find someone to research it.
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Zhou Chengdong has a nephew named Zhou Likun, who is the director of the Department of Key Strategies and Project Construction of the State Planning Commission and a candidate for deputy director. He and Zhou Chengdong are uncles and nephews in the same village.
Zhou Likun was able to have a smooth career thanks to Zhou Chengdong's guidance and care.
The economic development momentum of Shandong Province has been very strong in recent years. Zhou Chengdong has just been appointed and hopes to further develop Shandong Province. He has a background in petroleum. If he can build a large refining and chemical project in Shandong Province
, it is a very good opportunity for him as a new official.
After all, it is a large-scale project worth 10 to 20 billion. Its role in stimulating the economy is self-evident. It is regarded as the No. 1 project wherever it is placed.
Zhou Chengdong picked up the phone and called Zhou Likun.
Zhou Likun was in a meeting. When he saw the call was from Zhou Chengdong, he stood up and left the meeting.
On the phone, Zhou Chengdong said: "Director Zhou, are you busy?"
"Uncle, please stop teasing me." Zhou Likun said with humility in his tone, "No matter how busy I am, can I still be better than you? Do you have something to do?"
Zhou Chengdong laughed and said: "Then I won't follow you in circles, Likun, you said that Shanghai, Liaoning Province, and Nanyue are all going to build large refining and chemical projects, and I am also tempted.
You see, Shandong Province is adjacent to the river and the sea. There is the Denglai Oilfield on the sea and the Shengli Oilfield inside.
However, refining and chemical enterprises are still scattered and chaotic. There are many small enterprises, but their equipment is outdated and backward, and the environmental cost is not small.
I plan to build a large refining and chemical project, which is of great significance to boosting the economy of Shandong Province. Can you help me analyze it and see if this idea is feasible?"
Zhou Likun thought for a few seconds and then said: "Uncle, of course I support your plan to develop a large-scale refining and chemical industry, but as you said, Shandong Province has the advantage to develop petrochemical industry, but on the big plate, the Planning Commission has not yet decided
The reason for considering Shandong Province is that Shandong Province is already a major oil processing province and its production capacity is already relatively high.
If you have a good project, I can make a suggestion, which is to shut down and transfer a number of small refineries to upgrade the industry. In this case, it should be approved by the Planning Commission.
Hey, uncle, do you have a suitable project there?"
"Haha," Zhou Chengdong said with a smile: "To tell you the truth, I originally planned to cooperate with Far East Oil and Gas to carry out natural gas home delivery. Unexpectedly, Wang Hongbin, who has a lot of money and is stupid, said that he could also consider setting up a refining and chemical industry in Shandong Province.
Factory. Likun, you must have had contact with the other party, right? Is this person reliable?"
"Is it him? He has been in China for two years, but he has never done anything unreliable. He gets along well with local governments and enterprises in the Northeast. Uncle, please wait for me, I will ask someone."
Before Zhou Chengdong could reply, Zhou Likun hung up the phone and called Chen Lidong.
After hearing Zhou Likun's confusion, Chen Lidong said: "Haha, this Wang Hongbin, the more he plays, the more he becomes more and more arrogant."
Zhou Likun was stunned after hearing this, and then said: "Xiao Chen, you have to tell me whether Far East Oil and Gas has the energy to build another large refining project."
Chen Lidong thought for a while and said, "Energy? I really don't have any."
Zhou Likun asked in a somewhat eager tone: "Then... did Manager Wang go too far? You have to give me an explanation. Mr. Zhou from Lu Province is asking me to inquire about the situation. If you can't get in, please give me some information first."
I have a reasonable reason, let me explain it to him."
Chen Lidong said with a smile: "Hey, let's not hide it from the Secretary General, let's start a big refining project. We have money and no one. Do you think we can get involved?"
Zhou Likun smiled, "That's it, then it won't be a problem. Two years ago, Shandong Province carried out a reorganization of its refining and chemical companies, retaining 21 petrochemical companies and forming Qilu Petrochemical Co., Ltd. It is better for Far East to cooperate with Qilu Petrochemical
, form a new company and then examine a suitable location.
Qilu Petrochemical's small businesses should simply close down some of them and focus on developing new projects."
"No problem." Chen Lidong also agreed with Zhou Likun's opinion.
"Then, how much can you contribute, Xiao Chen?"
"Funds? My idea is that Shandong Province will provide the land and management, and we will provide complete sets of equipment and be responsible for the construction. The completed refining and chemical plants will naturally be managed by the province. However, the oil must be from Far East Oil and Gas or CNOOC.
, the price will of course be cheaper than international oil prices. Of course, gas stations and natural gas markets in various cities in Shandong Province will be opened to us. Haven't they already talked to Wang Hongbin? These are basically the conditions I have."
Zhou Likun was overjoyed after hearing this. The other party was trying to play the role of "many people with too much money are stupid" to the end!
Chen Lidong's opinion can be understood this way: provide money and equipment to help Shandong Province integrate petrochemical enterprises and upgrade its industry. Raw materials also require internal prices, and they will definitely be discounted.
It is necessary to explain here that oil is different from other commodities. The long-term agreement for oil supply does not agree on the price, only the quantity. The price follows the price of the international futures market. This is the rule.
Therefore, when Chen Lidong said that he would supply at internal prices, he must be giving away profits.
Zhou Likun felt red:
Such a good thing is so cheap!
ps: Chapter 404, there will indeed be problems. Updates were discontinued yesterday, sorry, sorry...
The results of my child's college entrance examination came out yesterday. My friends came over to visit me in the evening and I overplayed it, so I didn't update it.
When I wrote this book, I followed the outline agreed with the editor last year. The original plan was to write 1.5 million words, but it seems that I can still write hundreds of thousands more.
Chapter completed!