Chapter 659: Raw Materials Pollute the Environment



"Of course, of course."

Yu Liming and Zhu Zhanpeng were actually in a very awkward position at this time.

As the person in charge of Huadu Pharmaceutical, they certainly hope that the second-hand production line can be sold at the highest price possible. Isn't Director Qin hinting that it can be sold at a higher price?

But they were not sure what kind of background Lin Sanqi, the owner of Lingnan Hall, had in the province?

Otherwise, whether the second-hand production line should be eliminated or sold, such a small business would have directly triggered an earthquake in Huadu Pharmaceutical, and the entire management team would have been wiped out.

Look at today, the eighth day of the first lunar month, the head of the National Development and Reform Commission came here in person with people, including the heads of special departments.

Are you saying that Lin Sanqi has no background at all? Is that possible?

Even if Lin Sanqi has no background, he might be someone's white glove. Can such a person be offended easily?

So the two of them were caught in a dilemma: if they sold the production line at a lower price, there would be a large funding gap for upgrading to new equipment.

If I sell it at a higher price, will I end up offending people?

Although Yu Liming and Zhu Zhanpeng are a new team, they are both veterans. After a few glances, they decided to sell it at a lower price. After all, it is the group that suffers the loss, not them personally.

If they offend someone, they will be the ones who suffer.

Yu Limin gestured, and several secretaries of the group took out piles of information and handed them to the Lingnan Hall group.

"Director Lin, President Qiao, and the two deans, these are the production lines we've compiled that need to be phased out. They're labeled with the model and years of operation."

Dean Lou then asked, "Were these production lines originally sealed, or have they always been in production?"

Zheng Mo, Chief Engineer of Huadu Pharmaceutical, replied:

"Director Lou, don't worry, everything is in production mode. They just stopped working during the Spring Festival. These production lines can be dismantled and put back into production without any debugging or maintenance."

Dean Lou pointed to another item on the list and asked:

"The DWJ-2000D modular large tablet production line, I think it was imported from Japan? It should have been introduced 15 years ago, right?"

Chief Engineer Zheng thought to himself that he had indeed met an expert. It seemed that he had to be truthful in his answers:

"Yes, President Lou, it is indeed the production line from 15 years ago. At that time, we were still in the international leading position. This production line alone could produce 1,500 tablets a day.

Huadu Pharmaceutical has gradually introduced a total of 60 such production lines, and all of them have been included in the list of obsolete production capacity to be eliminated and sealed."

Dean Lou asked again: "What about the price?"

When Chief Engineer Zheng asked about the price, he didn't dare to answer. After all, this was an old machine and there was no standard market price for it. The leader still had to make the final decision.

Yu Limin took the microphone and answered:

"Please rest assured, Mr. Lin and Dean Lou, that since this is a second-hand production line, we won't ask for an exorbitant price. For example, when we first introduced this DWJ-2000D modular large tablet production line, the price per line was $10 million."

Dean Lou explained in Lin Sanqi's ear:

"It was indeed very expensive back then, and this production line is different from small production lines. The DWJ-2000D production line can be regarded as a workshop, which is equivalent to 10 domestic production lines. And daily necessities are not easy to break down and are long-lasting."

Lin Sanqi nodded slightly, understanding what was going on.

If he only needs to get a DWJ-2000D modular large tablet production line, his production will be equivalent to that of a large pharmaceutical factory in the 1960s.

60 production lines are equivalent to 60 pharmaceutical factories. What else can we expect? We must get it.

Yu Limin tapped his finger lightly and said:

“Originally we wanted to sell it for $1 million.”

Lin Sanqi and Qiao Jingzhu were about to retort when they heard this. "That's toxic! You're selling a discarded production line for $1 million? If you have the guts, try selling scrap."

"However, considering that Mr. Lin needs a large quantity, we priced the DWJ-2000D modular large tablet production line at $500,000 per unit. To be honest, this price, ahem, still hurts us a lot."

$500,000 for a large production line, equivalent to a pharmaceutical factory in the 1960s.

Lin Sanqi thought it was okay.

But Qiao Jingzhu was somewhat dissatisfied:

"Director Yu, $500,000 is over three million RMB. I've looked through your Huadu Pharmaceutical's public financial statements. Previously, your obsolete drug production lines were all scrapped, meaning they were sold as scrap metal. It was a steal if they could fetch tens of thousands of RMB."

Yu Limin took a deep breath and explained patiently:

"Mr. Qiao, the situation is different. These production lines were still producing medicines years ago, so they are not obsolete or obsolete."

What Yu Limin didn’t say was: If you hadn’t put pressure on your superiors, they would not have eliminated this production line and could have continued to operate for a few more years.

At this time, Director Qin said:

"Mr. Qiao, it's almost done. Didn't you see that Director Yu's brows were furrowed with worry? Haha. So, let's discuss all the unit prices and then give us a discount based on the total price."

Lin Sanqi quietly asked Dean Lou next to him: "Teacher Lou, is $500,000 worth it?"

Dean Lou didn't move, only writing two words on the draft paper: "Get it."

Lin Sanqi understood and immediately made the decision:

"Okay, let's take Mr. Yu's offer. $500,000 for 60 DWJ-2000D modular large tablet production lines. I want them all."

The first order was for 30 million US dollars, which is nearly 200 million RMB.

But this price is already based on the premise that Huadu Pharmaceutical is flooding the market with money. This shows how much investment a pharmaceutical factory requires and how high the cost is.

No wonder the second generation are unwilling to engage in the real economy and all flock to the financial industry. They really can't afford the investment.

The two negotiating teams then began bargaining over various other types of drug production lines.

Lin Sanqi is more concerned about the raw material production line.

The reason is simple: China in the 1960s was unable to produce its own raw materials.

The importance of APIs is that they are located at the upstream of the pharmaceutical industry chain and are the basis of drug manufacturing.

It is prepared through chemical synthesis, plant extraction or biotechnology, but patients cannot take it directly. It needs to add excipients and be processed before it becomes a drug that can be used directly.

The quality of APIs directly determines the safety and effectiveness of drugs, and therefore occupies a core position in drug production.

To give an example, APIs are like flour. Stable production and sales of steamed buns (medicines) require a stable supply of flour (APIs).

Because the quality of flour is directly related to the taste of buns.

Similarly, the quality of raw materials is also related to the efficacy and quality of the drugs.

In some ways, APIs control the vitality of drugs. If APIs cannot be supplied, pharmaceutical factories will have no choice but to stop production.

Unlike the impoverished 1960s, by 2015, China had become the world's largest producer of APIs, accounting for nearly 40% of the global market share.

To give another example, everyone knows that the world's pharmacy looks to India, which accounts for 60% of the world's pharmaceutical exports.

But no one knows that 70% of the raw materials for India's generic drugs come from China.

In other words, if China imposes an embargo on raw materials on India, India's drug production will almost come to a standstill.

Some people may think, wow, China is so powerful, it almost monopolizes the world's supply of raw materials. My country is so great.

But no one knows that the production process of raw materials is often accompanied by high pollution and high energy consumption problems.

A study published in the 7th issue of Environmental Chemistry in 2014 investigated the types and pollution levels of antibiotics in the water environment of China (especially Shanghai City and Taizhou City in Zhejiang Province).

The results showed that the most seriously polluted antibiotics in the Huangpu River were sulfonamides and tetracyclines, while the highest concentrations in the Yangtze River Estuary were sulfonamides and chloramphenicol.

Looking at the pollution situation of surface water across China, the most common antibiotics are fluoroquinolone and sulfonamide antibiotics.

Pharmaceutical factories are the main source of pollution. When antibiotics enter the water body, they not only induce the production of resistance genes, but also combine with other pollutants to produce complex compound toxic effects on aquatic organisms and humans.

In the second half of 2014, CCTV reported that antibiotics,

The Pearl River is the most severely polluted, with antibiotic levels far exceeding those found in rivers in developed European and American countries, which typically contain less than 100 nanograms per liter. (End of this chapter)

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