Chapter 133 Steel Plant Contract



The fragrance of rice spreads ten miles away!

By October, the rice fields had long since faded, and now they were ripe for harvest. Sun Zongyuan had estimated yields for the earliest-maturing plots throughout the township, averaging between 300 and 450 kilograms per mu. Because the rice is an early-maturing variety, Zhou Zhihua, the township's new agricultural station director, estimated that yields could increase by another 50 kilograms in other fields.

The day was October 6th. The Deputy Director of the Shandong Provincial Department of Agriculture, Shandong Agricultural University (the original Agricultural College was changed into a university), Ganhe District Commissioner Sun Peiqing, Deputy Commissioner Shen Congde, Director of the Regional Water Conservation Center Li Jianguo and county leaders held a ceremony to start the harvest.

News media such as the Farmers' Daily, Shandong Daily, Ganhe Daily, CCTV, and China National Radio also reported on the event.

After the leaders’ speeches,

Following Shen Congde's order:

"Honghua Township is transforming 10,000 acres of desertification and rice harvesting is underway now!"

100 harvesters dispatched from all over the Ganhe area rumbled into the rice fields and began harvesting. The people followed with bags in their hands, ready to put the harvested rice into their bags at any time to put it safely in their pockets.

Technical personnel from the regional and Anyang County Agricultural Bureau accompanied experts from the Agricultural University to select sample plots and pick up rice that fell on the ground to ensure that every grain was stored in the warehouse.

After harvesting several sample plots and compiling the data, the agronomy professor at the Agricultural University announced loudly over the loudspeaker:

"In Honghua Township, Anyang County, Ganhe District, 10,000 mu of desertification control has resulted in an average rice yield of 446 kilograms per mu! This has set a new record for desertification control in our province!"

Everyone applauded and congratulated each other!

The current price of rice is 0.18 yuan per catty for ordering, and 0.25 yuan per kilogram for negotiable purchase.

To be honest, this amount of grain is not much in terms of money. One mu of land costs about 200 yuan. It is considered good if you can save 150 yuan after deducting the cost of seeds, fertilizers, pesticides, etc.

The deeper people’s memory of hunger is, the deeper their desire for food will be!

Let’s put it this way:

Growing lotus roots earns more money, while growing rice yields more grain.

People have different goals, so the means are different, and of course the results are different!

After the leaders and experts and professors returned, the news media continued their activities in Honghua Township, Liuzhuang Township, Anyang County and Ganhe area for several days, visiting Li Jianguo, Shen Congde and Li Chuanyu.

A week later, news about Ganhe area was shown on TV, heard on radio and reported in newspapers. People from all over the country came to Ganhe area to learn from it, making Li Jianguo exhausted from receiving guests all day long.

On October 24, the signing ceremony for Shizhao's 5 million ton steel base project and 1 million ton wharf project was held at Qilu Hotel in the provincial capital.

Governor Lu Tianming signed the agreements for the two projects on behalf of the provincial government, and Li Jiawei signed the agreements on behalf of Hong Kong Yuanda Industry and Trade Co., Ltd.

The main leaders of Ganhe District and management above the management level of Yuanda Group and other groups attended the meeting, and Sun Zongyuan accompanied him as a family member of the chairman.

The 5 million ton steel base project has an investment of 20 billion yuan, with the first phase investing 500,000 tons and 500 million US dollars. The equipment is imported from Europe and the technology has reached the world level in the early 1980s (in fact, it is the equipment eliminated by Europe in the late 1980s, but it was considered advanced in China before Baoshan Iron and Steel was built).

The 1 million ton terminal will be built with an investment of US$600 million. In the first phase, two terminals with a capacity of 50,000 tons and 100,000 tons will be built with an investment of US$150 million. The terminals will use internationally advanced port equipment to ensure the utilization rate of the terminals.

After the project is signed, the provincial government will instruct the Ganhe area and relevant departments to form a special team to do their best to provide full-process tracking services!

Hong Kong Yuanda Industry and Trade Co., Ltd. entrusted Shandong Yuanda Industrial Group Co., Ltd. to supervise the two projects throughout the process.

In 1986, the national foreign exchange reserves were US$2 billion, and in 1987 it was US$21 billion.

Hong Kong Yuanda Industry and Trade invested US$650 million at once, accounting for one-third of the country's foreign exchange reserves, which alarmed the superiors!

"What's going on with these two companies?"

"Reporting to the Chief, the controlling shareholder is one person, and now..."

"Oh, and you're also introducing liquid crystal display technology and chip lithography machines to China? That's pretty patriotic, huh?"

"They are very young. The relevant departments are instructed to do a good job of protecting them. There must not be any ideological problems. Jade cannot be made into a useful tool without polishing. Young people still need to be well nurtured!"

"Roger that, Chief!"

"Li Chuanyou from Ganhe District has been all over the news lately. This project has landed in Ganhe, so he's quite the figure. How many years has he been the prefectural party committee secretary? Oh, three years. It's time for him to take on some important responsibilities in the provincial government!"

In the provincial capital, Hong Kong Yuanda Industry and Trade and Shandong Yuanda Group held a harmonious dialogue, discussed the development trends of the international economy, and reached a consensus on future cooperation. It is more appropriate to express their close relationship as that of brothers.

Both parties understood that the two companies were just fronts, and the most important person was Sun Zongyuan, who was the only investor of the two companies.

After the meeting, Sun Zongyuan and Xu Rui met with Li Jiawei in person. Li Jiawei reported:

The market value of his Japanese real estate and stocks has now reached 13.4 billion US dollars. This was achieved by borrowing 50 times leverage from the Bank of Japan and continuously practicing low-buy and high-sell operations.

Sun Zongyuan expressed his recognition of their work and offered to reward the Hong Kong company with 100 million yuan at the end of the year.

When asked about the investment in the steel plant and wharf project funds and equipment, Li Jiawei explained:

Through negotiations with a third-party technical consulting company, Sweden is willing to sell the entire 500,000-ton steel plant and convert its production, which includes a full set of production equipment and technologies for ironmaking, steelmaking, hot rolling, cold rolling, etc. The overall technical level is at the world level in the late 1970s and early 1980s.

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