Chapter 223
On the side of the road in a small Japanese town, Ye Manzhi and Pan Kunlun discussed for several hours.
The more we discuss it, the more it seems to make sense!
Pan Kunlun analyzed the issues one by one. "Compared to color TVs, black and white picture tubes only need to be coated with one type of phosphor. Binjiang Chemical Plant's phosphor can meet our needs. We don't need to import a separate production line."
"Yes, and there's a transistor factory right here in Binjiang. We can buy transistors locally."
"After careful calculation, we only need one complete machine production line and one cathode ray tube production line."
With the example of color TVs as an example, introducing only two production lines is already quite cost-effective.
"Then let's get a quote first," Ye Manzhi said excitedly. "If we can really get these two production lines back, then our Shuguang Factory will be the leader in the black-and-white TV industry nationwide!"
She gave a thumbs-up.
The two looked forward to a bright future, both of them feeling excited.
The next stop is to visit the Panasonic factory.
After visiting the black-and-white TV workshop, Ye Manzhi expressed his intention to purchase a second-hand production line to the Japanese side, wondering whether they were willing to sell it.
Upon hearing that someone was actually interested in the black-and-white TV production line, the other company sent a director to receive them.
The total price quoted for the two production lines is US$4.2 million.
Ye Manzhi frowned. "Mr. Yamamoto, your production line was put into operation in 1963. It's been ten years now."
Is 4.2 million too high?
Yamamoto explained, "The main equipment was put into operation in 1963, but new equipment has been added to the production line almost every year since then. The latest overhead conveyor was installed in 1970, based on the technology used in color TV production lines. We can handle the installation and commissioning of this equipment, ensuring that you can start production as quickly as possible."
Yue Songmei, who was helping to translate, advised, "Actually, $4.2 million is a good price. Look at the color TV over there!"
“…”
Ye Manzhi also knew that the price was acceptable. The two production lines were equivalent to 8.4 million RMB, which was less than a fraction of the price of a color TV production line.
But they don’t have that much foreign exchange!
The province can only squeeze out $1 million for Shuguang Factory.
Where does the remaining $3.2 million come from?
She wanted to bargain with Yamamoto again, but Yamamoto was only willing to give in 300,000.
"Although the international market for black-and-white TVs is becoming saturated, there is still a market for them. We can continue to make money in the next five years by keeping our black-and-white TV business."
The final bid was $3.9 million.
The Japanese side has a very firm attitude: if they want to buy, they can buy; if they don’t want to buy, then forget it.
Ye Manzhi: “…”
They are just two old production lines, what’s so great about them?
Director Li of Factory 305 heard that they had chosen the two black-and-white production lines. After learning the price, he also advised her: "If the price is about right, just buy it. It's much cheaper than color TVs."
"Director Li, you're a well-fed man who doesn't know the hunger of the hungry," Ye Manzhi said helplessly. "The central government paid for the hundreds of millions of dollars worth of color TV production lines, but our factory has to figure out how to produce the millions of dollars worth of black and white lines ourselves. Forget 3.9 million, we don't even have 390,000 dollars!"
Director Li touched his nose and changed the subject, saying, "The Spring Festival is just three days away. We'll be spending the holiday abroad this year. Everyone's been very busy lately, so we won't be making any new plans for the next few days. Let's just stroll around Kyoto and then head to other cities for inspection after the first day of the Lunar New Year."
"Okay," Ye Manzhi said cheerfully, "I haven't been shopping since I came to Japan. I have nothing to do this afternoon, so let's go out for a walk together."
There are restrictions on the use of foreign exchange by people traveling abroad on official business. In order to save as much foreign exchange as possible for the country, the comrades live a very frugal life and are not picky about food, drink, or accommodation conditions.
Hotel fees, food expenses, and miscellaneous expenses can be reimbursed according to actual expenses, but each person can only receive 1 RMB in foreign currency per day as pocket money.
Ye Manzhi had tens of thousands of yen in her pocket and went to the department store with everyone to buy New Year's goods.
She was mainly looking for novelties, and there were indeed some things in the capitalist stores that she had never seen before.
There is a portable camera that can record moving images. It is much smaller than the camera used by TV stations. She really wants to buy it, but unfortunately she has no money.
There is also an electric rice cooker. Yue Songmei said that it can cook rice very quickly, so she also liked it, but unfortunately she didn't have the money.
The Japanese yen in her pocket was less than fifty yuan, so she couldn't buy anything big.
Most of the male comrades in the inspection team chose to buy candy and biscuits for the children, and some even bought two bags of instant noodles.
But Ye Manzhi felt that food was gone once it passed through his mouth and had no commemorative significance.
So, she wanted to buy something that her child could use.
After running up and down the store three times, she set her sights on school supplies.
There is a kind of mechanical pencil that is not expensive and quite interesting. She has never seen this kind of pencil in the country.
My second sister, third brother, fourth brother, and fifth brother all have children who go to school, and the same goes for my eldest and youngest sisters-in-law.
So she spent all the few dozen dollars she had on buying mechanical pencils and refills.
I used the remaining few dollars to buy two bags of chocolate for Youyan.
As for Dr. Wu, he will get two kisses from her.
After spending all her pocket money, Ye Manzhi stopped going to the store.
It’s even more painful to see nice things but not have money to buy them.
So she lay on the bed in the hotel watching TV, preparing to welcome the Spring Festival.
Televisions in China are still in black and white, while the televisions in hotels are in color and TV programs can be played all day long.
Although he didn't understand, Ye Manzhi watched with great interest.
"This TV is good," she muttered, leaning her head on the TV, "but there are too many commercials. In less than half an hour, seven or eight commercials have already been played!"
"This has always been the case in capitalist society," Yue Songmei said. "Our companies produce according to plan, so we don't have to worry about selling our products. But capitalist companies have to find their own markets, and they run ads to entice consumers to spend money. And it's not just on TV; there are a lot of ads in newspapers too!"
Ye Manzhi has been in Japan for more than half a month and has never read the local newspaper. She wouldn't be able to understand it anyway.
She held her head and daydreamed for a while, then stood up, picked up the newspaper on the table and started reading.
There are indeed a lot of advertisements in the newspaper. Some of them are so exaggerated that one advertisement can take up an entire page, making it look like a big-character poster.
She flipped through the newspaper and then took it to the next room.
"Director Li, we've already inspected several companies over the past few days. The products and production lines are actually pretty similar. Our biggest concern is the price."
Director Li nodded. The offer of hundreds of millions of dollars made him feel uneasy.
The quotation is so high. What if the central government gives up the color TV production line?
Ye Manzhi handed him the newspaper and said, "Companies in capitalist society like to advertise on television and in newspapers. Why don't we follow the local customs and try placing an ad in the newspaper?"
Director Li asked in surprise, "Advertising?"
There are very few companies in China that advertise. Factory 305 is a military factory and has nothing to do with such things.
"Yes, we're looking to buy a color TV production line and a black-and-white TV production line. We're staying in Kyoto for the New Year holiday, so we won't be changing our address for now. If any company is willing to sell their production lines, please have them call our hotel!"
Looking at the exaggerated font in the newspaper, Director Li felt a little moved.
Visiting each company one by one is obviously not as convenient as advertising.
He called other team members to discuss the matter, mainly asking comrades from the Ministry of Foreign Trade and the Fourth Ministry of Machine Building whether it was feasible to advertise in this way.
A comrade from the Ministry of Foreign Trade said, "We previously sent representatives to a trade fair in Bulgaria and placed advertisements in local newspapers. Advertising is actually feasible."
Since there is a precedent, everyone feels free to do it.
Director Li asked the guide for help and published a purchase information in a national newspaper.
The layout is not very large, only the size of a matchbox, but the advertising effect is very good.
The day after the advertisement was posted, the inspection team received a call from a television agent.
It is said that he is the agent of Panasonic and Tokyo Shibaura TVs and can help them contact the color TV production lines of these two companies.
It would be best if both parties could meet in Tokyo.
Yue Songmei half covered the receiver and asked Team Leader Li whether she could go to Tokyo.
After receiving the nod, she was about to agree when she heard the other party suddenly switch to Chinese and ask, "Are you Chinese?"
"Yes, we're here to inspect the production line in Japan," Yue Songmei said, pleasantly surprised to meet an old friend. "Are you Chinese too?"
The person on the other side smiled and said, “I’m an overseas Chinese doing business here.”
There was no language barrier between the two sides. Director Li took the phone and personally introduced the requirements for the production line to him.
Upon hearing that this was the first color TV production line introduced by the motherland, the old overseas Chinese patted his chest and promised that he would help them get the best price.
The inspection team should not be anxious and stay where they are and wait for his news.
After hanging up the phone, Director Li asked, "What should we do? Can we wait?"
According to everyone's plan, we will continue our inspection of other factories starting from the second day of the Chinese New Year.
Pan Kunlun said, "Then let's wait a little longer. If this comrade can get the best price, we won't have to run around so much."
Panasonic and Tokyo Shibaura are both large companies with more advanced production processes than small companies.
The inspection team decided to stay in Kyoto and wait, while Ye Manzhi and Pan Kunlun decided to take the time to visit Osaka.
They received a call from Pim Electronics, which was interested in transferring its black-and-white TV production line and wanted to invite them to Osaka for negotiations.
Pim is also one of the 18 manufacturers in Japan that can produce televisions, but they only have black and white TV business and are relatively small in scale, so the inspection team did not include it in the inspection list.
Ye Manzhi didn't care about the other party's size, and specially took an interpreter and a guide to Osaka, where he was warmly received by the company's president.
"Mr. Watanabe, can you transfer both your complete machine production line and cathode ray tube production line?" Ye Manzhi asked.
"Yes. But we used to produce picture tubes. We've been using these two production lines since the company was founded. They've been in use for 11 years, and the depreciation rate is quite high. They're not as well maintained as the complete production line."
Ye Manzhi deliberately looked dissatisfied and whispered to Pan Kunlun, "How are their two production lines?"
Pan Kunlun shook his head in agreement with her, then said affirmatively, "The cathode ray tube production line is a bit older, actually about the same age as Panasonic's, only a year older. But the entire production line is in much better condition than Panasonic's, and its service life should not exceed eight years."
This small factory must have purchased its production lines from a large company. Thinking of this, Ye Manzhi asked, "Mr. Watanabe, where did you purchase these two production lines?"
"Hitachi."
“How much can a single shift produce?”
"About 400."
Ye Manzhi frowned and shook his head again, as if looking down on it. "We visited the Hitachi factory a few days ago, and they can produce 500 units in a single shift!"
She estimated in her mind that the total price of the two production lines would not be less than 3 million US dollars.
Even if it is lower than Panasonic's offer, it is still not affordable for Sugon.
So, she stood with her hands behind her back and asked critically, "Mr. Watanabe, we trust the quality of your products, but we have doubts about this old cathode ray tube production line. If we only want to buy the entire production line, what would be the price?"
Pym's was a small company, with fewer than 700 workers in the factory.
If Watanabe wants to switch to producing color TVs, he must sell one of his two existing black-and-white TV production lines and keep the other.
He quoted a fair price: "Two million dollars."
Ye Manzhi said calmly, "Mr. Watanabe, our country is interested in importing a batch of television parts for assembly, including black-and-white television tubes. Although the black-and-white television market in Europe and the United States is saturated, the market prospects in our country are very broad. If you can give us a discount on the entire production line, we can consider purchasing tubes from Pym."
Importing bulk accessories is much cheaper than importing complete machines. The country does plan to import a batch of components from abroad and assemble them domestically.
A gleam of brilliance flashed in Watanabe's eyes. If he could really get a piece of this big cake, he could even switch to producing color TVs a few years later!
"Ms. Ye, how much do you want to pay for the production line?"
Ye Manzhi confidently cut the price in half, "One million US dollars, if possible, all the cathode ray tubes needed for our factory's production in the next three years can be purchased from your company, no less than 200,000 tubes per year."
In three years, the profit will never be less than 2 million US dollars.
Watanabe didn't agree immediately. After a long pause, he said, "Ms. Ye, we can transfer our production line to you for $1 million, but the televisions you produce must use the 'PIMM' trademark."
Ye Manzhi: “…”
What good things are you thinking about?
Just a discount of one million US dollars and they want to put your trademark on it?
She actually found these Japanese businessmen a bit confusing.
She also said the same thing to Mr. Yamamoto from Panasonic, and Yamamoto's answers were almost exactly the same as Watanabe's!
Panasonic is a large local company, so it is understandable that it wants to use its own trademark, but Pim is a small company that has only been established for 11 years and is not even a big name in Japan. Why does it want to use its own trademark?
She couldn't figure out why they had to put their own trademark on it, but it must be a popular item that everyone wanted.
Therefore, she couldn't give in easily.
Director Xiao Ye still wants to make the Shuguang brand bigger and stronger, so it is impossible to put a foreign trademark on it.
If she really agreed, she would be scolded when she got home.
It seems that the method of replacing production lines with accessories is no longer feasible.
Ye Manzhi no longer mentioned the topic of imported accessories and formally negotiated the quotation for the two production lines with Watanabe.
The final total was $3.2 million, $700,000 cheaper than Panasonic's offer.
Even so, Shuguang Factory still couldn't afford it.
The group visited the production line several times and spent three full days in Pim's workshop.
After confirming that there were no problems with the production line, Ye Manzhi confidently made an agreement with Watanabe that she would return to China to report the situation to her superiors and would give him an answer before April this year.
*
"These two production lines at Pym are really good," Pan Kunlun said worriedly, "but we don't have enough foreign exchange."
Not to mention that we don’t have enough foreign currency, we don’t even have that much RMB!
Excluding the $1 million from the province, another $2.2 million is still needed.
2.2 million US dollars is more than 4 million RMB. How could Shuguang Factory have so much money on its books?
Ye Manzhi was also stumped by the $2.2 million hole, and his mind was in a mess.
Shuguang Factory has been engaged in export trade for six or seven years and has obtained a certain foreign exchange quota every year.
However, after six or seven years, he only saved $200,000.
There are still 2 million left!
Pan Kunlun suggested: "How about we borrow some from other factories?"
"Which factory leader would dare to make such a decision? Shuguang Factory's export earnings are among the highest in the province, and we've only managed to secure a $200,000 quota over the years. Other factories have even less. The problem is, if we borrow dollars and repay them in dollars, how can we possibly repay them?"
"Are you just going to give up like that?"
Pan Kunlun was really unwilling to accept this.
After going abroad and broadening his horizons, he no longer looked down upon his own production line that could produce 37 units in a single shift.
I just want to quickly install a single-shift production of 400 units.
Moreover, now is a critical juncture for Japanese manufacturers to switch production. If you miss this opportunity, you may not be able to buy such cheap second-hand equipment.
Ye Manzhi didn't get enough rest these past two days, and his brain felt like it was filled with paste and couldn't work.
She waved her hand and said, "Let me think about this for a while. Let's go back and reunite with Director Li. I wonder what the situation is like over there."
When the few of them returned to Kyoto, Director Li had just received a call from an old overseas Chinese.
The old overseas Chinese is an agent for two electrical appliance companies and has been an agent for many years.
After his mediation, he got a quote of $90 million for the four production lines.
It’s 20 million cheaper than the previous middleman’s quote.
It is 40 million cheaper than the first offer the two companies made to China.
Director Li grumbled, "Their offer is way too high! 40 million US dollars is almost 100 million RMB!"
"Haha," Ye Manzhi laughed, "I told you, capitalists are very cunning. Negotiating with them requires some skills."
Her trip was not in vain. Although they had not yet reached the negotiation table, the two people she managed to find had already helped the inspection team negotiate 40 million US dollars.
Director Li was still not satisfied with the quotation and started the inspection trip again the next day.
The group stayed in Japan for nearly two months, and after inspecting thirteen electrical companies and three chemical plants, they finally boarded the plane back home.
As the team leader, Director Li had to go to Beijing to report on his work first, and Ye Manzhi also had to report the situation to the provincial leaders.
We parted ways in Guangzhou.
Director Li shook Ye Manzhi's hand and said, "Director Ye, thank you for your hard work this time. The Japanese offer is too high, and I don't think the department leaders will be satisfied. We may have to visit other countries for inspection later. If you are willing to participate, I will invite you when the time comes!"
Director Ye is indeed very experienced in dealing with foreign businessmen, and his handling skills are more flexible than those of the cadres in the ministries and commissions.
If there are other survey missions later, he also wants to bring Ye Manzhi with him.
Ye Manzhi also hopes to go out more often, but she is the head of the factory after all and cannot be absent from the factory for a long time.
She said ambiguously, "As long as the factory situation allows, I will continue to travel around with you all!"
The two sides shook hands and said goodbye.
Ye Manzhi found a post office nearby and called Wu Zhengrong to report that she was safe.
Then he contacted the factory and informed everyone of the situation of the two production lines.
"Director Tian, please organize a team meeting as soon as possible to gauge everyone's attitude. If everyone agrees to introduce the equipment, I will find a solution in Guangzhou. If everyone thinks it's not feasible, then I will leave now."
Tian Chunshan said: "Of course everyone wants to introduce advanced equipment, but what about the gap of more than 4 million yuan?"
Ye Manzhi briefly introduced his plan and added, "This team meeting must be formal, and good minutes must be taken. I will definitely vote in favor, so please record this for me. If other comrades disapprove, please also record the reasons for their disapproval."
At ten o'clock the next morning, she and Pan Kunlun went to the post office to make a phone call and received the result of unanimous approval from all team members.
"Is Wang Zaofu still in the study class? Did he agree?" Ye Manyi asked.
"He agreed. I went to his house last night," Tian Chunshan said with a smile. "Director Wang seemed reluctant to agree at first, but his wife and Aunt Wang kept giving him the eye contact, and Director Wang hesitantly agreed."
"Okay, then I'm relieved."
There was no problem inside Shuguang Factory, so Ye Manzhi called Xia Zhuyun again.
She spent more than 60 yuan on phone bills before she walked out of the post office.
"Director Ye, are we really going to borrow money?" Pan Kunlun asked.
"Let's try it first." Ye Manzhi glanced at his watch and said, "Let's go, the appointment time is almost here."
The two of them drove to the Guangzhou Broadcasting Equipment Factory and saw the director of the factory's Revolutionary Committee waiting there from afar.
Ye Manyi called out "Director Qin" and quickly stepped forward to shake hands and greet the other party.
Qin Changzheng smiled warmly and said, "Director Ye, you are an honored guest!"
"Haha, I'm truly an honored guest this time, bringing good news to you," Ye Manzhi said, "Director Qin, you'll have to treat us with some good tea later."
Qin Changzheng led the two into his office and personally brewed two cups of tea. "Director Ye, I heard you went to Japan for an inspection with the people from Factory 305. How was the situation?"
"Oh, it's hard to explain in a few words." Ye Manzhi said, "The color TV production line is quite complicated, so I won't go into details. It has nothing to do with us anyway."
Guangzhou Broadcasting Equipment Factory, like Shuguang Factory, is a local state-owned factory, and both started producing black and white televisions in recent years.
The two factories share the same problem: they can only focus on the black and white TV field and have no share in the color TV production line.
However, the Shuguang Factory has turned losses into profits, with an annual output of 26,000 units, while the Broadcasting Equipment Factory still needs government subsidies to cover its losses, and only produces two to three thousand black-and-white televisions each year.
Ye Manzhi didn't beat around the bush. After taking a sip of tea, he said directly, "Director Qin, while we were inspecting color TVs this time, we also inspected black and white TVs. Their single-shift production is as high as 400 units!"
"so much!"
"That's right. That's why our Shuguang Factory is planning to import two second-hand production lines from Japan to make up for the shortfall in domestic black-and-white TV production capacity."
Qin Changzheng asked with some envy: "How much does the production line cost?"
"$3.2 million."
“You have so much foreign exchange?”
"Haha, who dares to say they have so much foreign exchange? That would require help from the province." Ye Manzhi whispered, "Our province can provide 1 million US dollars!"
"That's not enough..."
Ye Manzhi nodded, "There's still a gap of two million, so we came to see Director Qin!"
Qin Changzheng: “…”
What kind of relationship does this have to have that would allow him to lend you $2 million without any regrets?
Furthermore, Guangdong’s high export earnings do not necessarily mean that broadcasting equipment factories have foreign exchange.
Their factory doesn't have many export products, and their pockets are cleaner than their faces!
"Director Ye, you should know our situation. We don't have any foreign exchange at all."
"Your factory doesn't have it, but your province does!" Ye Manzhi said. "To develop the television industry, our province is willing to provide your company with $1 million to introduce a production line. As a local state-owned factory, you should also seek support from provincial leaders!"
Qin Changzheng: “…”
Each province supports its own enterprises, so how can they ask other provinces to support foreign exchange?
Listen to it yourself, does your request make sense?
Ye Manzhi asked: "Director Qin, do you know what our Binjiang team is best at?"
“…”
"Heavy industry!" Director Xiao Ye boasted. "We can even make cars, airplanes, and cannons. How can we not handle two small production lines? As long as the production lines reach Binjiang, I can immediately organize engineers from our factory and other major machinery factories to replicate those two production lines!"
"Director Qin, please lend me $2 million from your province. I promise to deliver two brand new production lines to the Broadcasting Equipment Factory within two years! If our two factories, one in the south and one in the north, collaborate, we'll be able to dominate half of the domestic television industry!"
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