Chapter 69 Investment Intentions



Li Jianguo and his two companions were planning to visit Nantong Fourth Construction Company.

A county-level construction company operating under the name of Nantong City.

This company once participated in aiding Tibet's construction. Due to the harsh conditions and lack of raw materials at the time, Nantong Sijian overcame various difficulties and successfully completed the construction tasks assigned by the central government. It was highly praised by the central leaders and Jiangsu Province also gave it the honorary title of "Construction Iron Army". Later, its construction projects spread all over the country and it developed into one of the "Top 500 Private Enterprises" in the country.

This construction company has been in some trouble recently. During this golden season for construction, the cement and concrete aggregates transferred from other places have been in short supply, which has directly affected the construction progress. Due to quality reasons, they dare not use local cement and aggregates. For Nantong Sijian, which regards quality and speed as the lifeblood of the enterprise, this is really worrying.

Geng Yuhua is the vice president in charge of production. He is a young corporate management cadre who is capable, good at management, has vision and courage. He is older than Sun Zongyuan, at 26 years old.

Hearing that someone from Shandong Province was coming to sell cement, Geng Yuhua came to receive him in person.

In the reception room, Sun Zongyuan put forward his own suggestions for the problems of the Fourth Construction:

We can coordinate with Ganhe area to urgently allocate 5,000 tons of high-quality cement and stone to solve the urgent needs of Sijian. The price will follow the market, and the quality can be tested and analyzed by Sijian before transportation.

Then the question was raised whether Sijian could build a building materials base in Anyang County.

Sun Zongyuan took out a map of Shandong Province, found the location of Anyang County, and briefly introduced Anyang County's location advantages and recent development plans to Geng Yuhua.

Geng Yuhua first confirmed the urgent need for cement and gravel. Sun Zongyu picked up the phone and called Secretary Li Chuanyu of the Prefectural Committee. When he heard that Nantong was short of cement, Li Chuanyu immediately arranged for the regional cement factory to squeeze out cement and send it to Nantong Sijian. As for the gravel problem, he arranged for the regional building materials company to quickly prepare the supply.

The annual production capacity of the cement plant in Ganhe area is only 100,000 tons, and its products have won the second prize of the National Quality Award. The cement produced is mainly supplied to the local area, and the market sales volume in other regions is very small. This time, there is an opportunity to sell to the developed areas around Shanghai. Li Chuanyu knows how big the market potential is. With more cement in demand, the regional cement plant will have to expand its scale and production.

They are all old foxes with a history of thousands of years. Who can’t see the contribution to economic development?

When Geng Yuhua saw that the first problem had been solved and heard that the product had won the National Quality Award, he immediately expressed his willingness to transport it over without the need for testing.

He secretly calculated in his mind that the overall cost of transporting by car was slightly lower than transporting by water from Anhui's Yangtze River. He could save money and solve the problem. He thought that the boss would also support it.

Regarding the construction of the building materials base, Geng Yuhua raised several questions:

The company does not have extra cash to invest now, how to build it?

If the project is completed, how will the transportation of cement and stone aggregates, both of which are bulk commodities, be solved? In the long run, using trucks for transportation is not cost-effective.

At noon, several people had a working lunch together in the company cafeteria and agreed to continue the discussion at 2:30 in the afternoon.

Geng Yuhua asked the company office to open a lounge for the three people and provided some tea and fruit.

Li Jianguo and his two colleagues didn't rest at all. They discussed the matter repeatedly and made two phone calls to Secretary Wang Peizhong to solicit the county committee's opinion. Wang Peizhong then called Secretary Li Chuanyou of each district to seek instructions and report back. Only then did they reach a consensus among the special task force, the county committee, and the prefectural committee. County Magistrate Sui Gang didn't call them, not because he didn't want to, but because he couldn't find them. In an era before cell phones and WeChat, the airwaves were pure.

At 2:30 p.m., Mr. Wang, Mr. Geng, the CEOs of Sijian, Mr. Qi who is in charge of material supply, and the heads of three relevant departments attended the negotiations together.

Since the Fourth Construction Company attaches great importance to it, it means there is hope!

What is negotiation? Negotiation means giving up some of your own interests and moving towards the middle.

What is harmony? Harmony is the art of compromise, a win-win model. When both parties believe that their own interests are maximized and are happy, then there is harmony!

After a brief introduction, Mr. Wang raised the two questions Geng Yuhua raised that morning. If these two questions were not satisfactorily resolved, there would be no basis for cooperation.

Sun Zongyuan was entrusted by the Li Jianguo brothers to give a positive response.

Sijian has brought its own legal advisors and secretaries who will keep good records and provide legal advice from time to time.

The first problem is the issue of investment funds.

The two bridges on National Highway 327 and the Honghua Bridge in Anyang County, with a total construction fund of about 12 million yuan, can be undertaken by Nantong Sijian. According to the audit and settlement by Anyang County, it is preliminarily estimated that Nantong Sijian will have a net profit of 4 million yuan.

The 700,000-ton cement plant can be built in two phases over three years. The first phase will produce 400,000 tons. The mineral resource fees in the first three years can offset the cost of bridge construction, reducing the initial investment cost.

Since there are no large-scale cement plants in the southern part of Shandong Province, and the province's economy has developed in recent years, the market potential is huge, the investment risk is very low, and the investment recovery rate is very high.

For the second transportation problem, there are three solutions:

Anyang is 40 kilometers west of the Beijing-Hangzhou Grand Canal Wharf, and can be transported to cities along the Yangtze River by water. It is not affected by the Yangtze River's flood season, dry season and bad weather, so transportation is guaranteed and freight is cheaper.

The only bottleneck is that the road expansion requires the excavation of two tunnels, but this has been included in the county’s work priorities this year, and it is estimated that the road will be open to traffic in the first half of next year.

The second option is to ship to Nantong or Shanghai by sea. Shizhao City is currently constructing a deep-water terminal, with the first phase of a 100,000-ton terminal expected to be operational next year. Anyang is connected to the HNA terminal by 120 kilometers, ensuring reliable shipping to the southeast coast or export.

My dear, there is more to this chapter. Please click on the next page to continue reading. It will be even more exciting later!

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