Pfizer’s top management was obviously a little bit unbelievable that a pharmaceutical technician who just graduated from university could only earn a few dozen dollars a month?
At Pfizer, a black woman who cleans toilets earns $600 a month.
Pharmaceutical factories are high-tech enterprises, and their employees need certain professional knowledge, which also determines that the labor costs and daily expenses of pharmaceutical factories are very high.
Chen Xia continued to deceive:
"In addition to low labor costs, China also has very low raw material costs. We can definitely set up a synthetic raw material workshop in China. Then, these raw materials will not only be used by our own company, but can also be sold to other pharmaceutical companies."
Western medicine is different from traditional Chinese medicine. Traditional Chinese medicine requires many Chinese herbs, minerals, animals, etc.
Most of the drug ingredients and raw materials of Western medicine require chemical extraction.
For example, let’s take the common aspirin as an example:
Aspirin is made by the reaction of salicylic acid and acetic anhydride.
How is salicylic acid extracted?
First, coal tar is left over from coal dry distillation (the process of producing coal gas). Benzene can be distilled from this tar. Benzene is sulfonated with concentrated sulfuric acid, then melted and heated with caustic soda. Finally, it reacts with carbon dioxide at high temperature and pressure to produce salicylic acid.
Technicians dehydrate acetic acid with concentrated sulfuric acid to obtain ketene, which is then reacted with acetic acid to produce "acetic anhydride".
The extraction of these raw materials is neither simple nor difficult. In later generations, many companies will outsource the raw material process or purchase them directly from the raw material market instead of producing and extracting them by themselves.
China has low labor costs and low material prices, so the price of the "raw materials" extracted through synthesis is definitely much lower than that in developed countries.
Chen Xia's words have already moved the executives of Pfizer Pharmaceuticals.
Vice President Marcia also has her concerns:
"Chen, I have another question. I've been to your hometown, Yuezhou, before. It's a small city. If we invest and set up a factory there, how will we solve the transportation problem for exporting our products?"
Everyone looked at Chen Xia again. This was a critical point. If the products were produced but could not be shipped out, it would be a waste of time.
Even if a factory is to be built, it must be built in a place with convenient transportation, such as the very famous Shenzhen City in China at that time.
Before coming to Pfizer, Chen Xia had discussed the investment environment with his future father-in-law, and also discussed whether transportation and logistics would restrict the development of Zhijiang Province.
Xu Hongtai told Chen Xia at the time that Zhijiang Province’s external transportation was actually very convenient because there were many excellent deep-water ports along the coast of Zhijiang Province.
For example, Ningbo Port, which later became the world's largest port in terms of cargo throughput.
On June 1, 1979, with the approval of the State Council, Ningbo Port was officially opened to the outside world, which meant that foreign ships could enter and exit Ningbo Port freely, and goods from all over the world could be delivered.
Xu Hongtai quietly revealed that the province will also establish the "Ningbo Port Authority" this year to manage the ports in Ningbo and Zhoushan and continue to increase opening up to the outside world.
In the future, goods from Jiangxi Province and even the East China region will no longer need to be exported from Hong Kong, and Ningbo Zhoushan Port will be able to handle external logistics.
This is a great benefit to Chen Xia.
You should know that the export volume of Yuezhou's "Four Seasons Department Store" and "Four Seasons Textile Company" is very large. Previously, they had to be transported to Hong Kong by train, and then shipped from Hong Kong to the United States.
The logistics cost is very high.
When Chen Xia heard Marcia's question, he took out a map of China from his big backpack and hung it on the wall.
"Everyone, let me introduce you first. My Yuezhou is located here."
Chen Xia drew a circle on the map, and the circle was where Yuezhou City was located.
"In the past, our Yuezhou goods had to be exported from Xiangjiang," and after saying that, Chen Xia drew a circle on the location of Xiangjiang.
"Look, it's almost 1,500 kilometers from Yuezhou to Xiangjiang. It's really far away. Not only is transportation inconvenient, but the logistics costs are also very high."
Everyone in the conference room looked at the map and nodded.
Chen Xia drew a picture of Yongbo City on the map.
"Look, more than 100 kilometers east of Yuezhou is a natural deep-water port in China. The port's throughput is currently ranked 30th in the world, and it may become the world's number one in the future.
Therefore, we built a factory in Yuezhou, and our goods can be exported through the Ningbo Port. It is very convenient here, whether by rail or road."
Oh~~~Everyone nodded, it turns out that transportation in Yuezhou is so convenient.
Chen Xia finally added fuel to the fire:
"The key is that I have very close relationships with high-ranking officials in Zhijiang Province and Yuezhou City. They will definitely give us the greatest convenience within the scope of the law, without having to worry about any resistance."
Now everyone understood. Chen Xia could handle the most critical relationship with the local government. With such good conditions, what reason was there not to invest?
Chen Xia thought about setting up a joint venture factory with these pharmaceutical giants, just like he did with sildenafil.
However, the cooperation with the Tsuen Wan Pharmaceutical Factory in Hong Kong where sildenafil was produced was not very pleasant. As expected, GlaxoSmithKline began to make financial adjustments in order to minimize dividends.
This indirectly affected the relationship between the two companies. Chen Xia was still considering ending the cooperation after the patent license expired.
However, there are still ten years before 1997, and Chen Xia's layout in Hong Kong still depends on the support of British capital, so Chen Xia is not willing to have a conflict with GlaxoSmithKline now.
All in all, we can only say that Chen Xia's strength is still too weak and he still lacks the right to speak when facing foreign capital.
So Chen Xia’s current strategy is: increase patent fees and invest in the other company, so that he can make money twice and maximize his own interests.
Moreover, because Chen Xia only holds a small number of shares and has promised to always support the "Chairman", he will not pose a threat to the existing power structure within the company, and will not become a "thorn in the eyes" of others.
This way, he can save himself from worries, make a lot of money, and avoid getting involved in intrigue, which is very suitable for Chen Xia's style as a "salted fish".
As for insisting on building the pharmaceutical factory in Yuezhou, there are even more benefits. Originally, he wanted to create political achievements for his father-in-law, Deputy Commissioner Gu.
Now suddenly a "future father-in-law" appears who needs political achievements. One thing can create political achievements for the two fathers-in-law. Why not do it?
As for Chen Xia himself, in addition to receiving dividends and patent fees, as long as the pharmaceutical factory is built in Yuezhou, he can completely develop peripheral enterprises, such as raw material providers, and build several raw material factories specifically to provide them to the "pharmaceutical factory."
This is equivalent to making money three times, eating one fish three times.
Chen Xia's lobbying was very successful.
On the third day, Chen Shuqin brought her legal team to the United States and signed a preliminary investment intention contract with Pfizer.
Pfizer then sent a delegation to Yuezhou City, Zhijiang Province to investigate the investment environment, acting very quickly.
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