Chapter 454 The beginning of establishing a foothold in Southeast Asia
It is most likely not cost-effective for Asian capital to come to Europe to build factories, but sometimes, it may not be cost-effective. Some products with too high transportation costs can be considered. In addition, tariff issues must also be considered.
Then there is the ZZ factor. Multinational enterprises always have to establish certain reciprocal interests with some overseas countries. If they invest in the UK for the Commonwealth market, they can also consider investing in France for the European market. France is the leader in Europe in this era. , neighboring Germany is not currently available.
However, how to cooperate and what to do need to be combined with the specific situation of France. If it is suitable, invest more, and if it is not suitable, invest a little more.
Longci said: "Okay, I also very much hope that France can cooperate with your company."
Although France's economy is not bad, no one would dislike large-scale manufacturing, especially industries with almost no pollution. Europe and the United States also hope that their homelands will be filled with such enterprises.
Leaving several people behind to deal with follow-up matters with Atlantic Shipyard, Yang Wendong took several people to the UK, where Changxing Industrial's factory has also started construction.
Naturally, Wei Zetao came here early. After all, the boss came to see him in person, and he needed to come too.
Looking at the structure inside the factory that is similar to that in Hong Kong, the only difference is that the employees have been replaced by white people instead of Chinese. Yang Wendong asked: "Have the costs been calculated? Is it profitable to produce here?"
Even though he doesn’t care whether the British factory can make money, it would be best if it can, because once it can make money, it will be sustainable, and the scale may expand in the future. In this case, it will also be convenient for him to maintain and maintain cooperation with the factory. British Government Relations.
He will still need this relationship for at least the next 20 years. It goes without saying that he is a local in Hong Kong. If he knows the British senior officials, the Hong Kong Governor or HSBC will give him an extra three points of face. In addition, although the British side is gradually declining, but There are also many high-quality assets that you can invest in when your capital becomes stronger. After all, a big capitalist wants to expand globally. Even if Hong Kong develops well in the future, it is impossible to invest them all here.
Wei Zetao said: "We have calculated internally that if we maintain the original price, the profit will be suppressed by less than 5%. Once there are other additional costs, we may lose money."
"Now many of our parts are produced by external suppliers, right?" Yang Wendong asked again.
Wei Zetao said: "Yes, this is currently just an assembly plant, that's why it can start work so quickly. Does Yang Sheng want us to transport the injection molding machine and produce it here?"
Yang Wendong nodded and said: "I have this idea. This will definitely reduce costs. Even for the raw material plastic particles, I can also ask Changxing Trading Company to build a branch in the UK to sell Formosa Plastics or our future plastic particles.
Not only do we supply ourselves, but we can also supply other plastic companies in the UK. Changxing Shipping will also be responsible for transportation, so that costs can be reduced to a minimum. ”
"Yes, yes, but in this case, it will take a lot more labor to recruit." Wei Zetao reminded: "Yang Sheng, the laws here and many previous experiences show that once a factory has too many people, there will be many Troublesome things, such as the union, and it will be difficult for us to evacuate one day. ”
"I know, but every loss must have its gain. Only by having a larger factory in the UK can we ensure that we get more benefits from other fields." Yang Wendong added: "Besides, if one day the UK is no longer suitable for factories, directly Just close the factory and pay compensation in accordance with the law. There is nothing else to say.”
It is difficult for many factories to lay off employees because they still want to ensure a certain level of productivity. However, if the capitalists decide to close the factory, no matter how strong the European and American labor unions are, they will have no choice but to stop. This was the case with Wal-Mart in the previous life against labor unions, and there are still many processes in which companies compete with labor unions. In China, they couldn't bear the pressure of the labor unions, so they just closed the factory and it was over. Many European and American companies even moved to Asia, and the local labor unions were definitely one of the biggest promoters.
Wei Zetao replied: "Okay, then I will immediately arrange for Hong Kong to send the equipment over. However, considering the uncertainty of the future, it is better to send some old equipment over to save some money."
"Okay, as long as it can be produced, our products do not require high precision anyway." Yang Wendong agreed.
Commercial production pursues the highest profit. If second-hand products are usable and more cost-effective, then you would be a fool not to use them.
Wei Zetao then said: "Yang Sheng, the talks in Singapore have almost been completed. The speed on my side may be a little faster than that on Zheng Sheng's side."
"Then we are going to Singapore. In the UK, there is currently nothing to invest in except factories." Yang Wendong added: "In the future, if you are in the UK or Europe, don't invest in real estate, just rent a factory. Everything can be simplified as Lord, just try to open up the sales chain here.”
Although in the long run, real estate in Europe is also going up, but by how much, he doesn't know. Then the investment is meaningless. It is better to invest in Asia, where the future is known, especially in Europe, where there are real estate taxes, etc., and even It may be more cost-effective in the United States than in Europe.
Of course, when it comes to retail business, ports or some infrastructure, etc., you can still invest. Li Jiacheng did this in his previous life. Although it seems that sometimes he will lose money, it is still profitable in the long term. When there is enough capital, It can also be considered.
"Understood." Wei Zetao agreed.
On November 6, Yang Wendong, Wei Zetao and many others came to Singapore.
"It feels like Singapore has changed a lot in just a few months." After arriving at the edge of the Central District, Yang Wendong said after looking at the many sites under construction around him.
Wei Zetao explained: "Yes, there have been great changes in the past few months. After the establishment of Singapore, the Z Bureau was stable, and many Chinese capital in Southeast Asia also came to the news. You also know that in Southeast Asia, the Chinese community is very prosperous. Money.
In addition, policies are very encouraging to attract foreign investment. Even many European and American capitals have come to invest, including the United Kingdom and the United States. There is a lot of infrastructure. Currently, private capital and overseas capital are responsible for commerce and factories. , government capital is responsible for the infrastructure construction of roads. ”
"Well, this combination is indeed reasonable." Yang Wendong asked again: "What about heavy industry?"
"Heavy industry?" Wei Zetao replied: "There is no heavy industry in Singapore now. Except for some oil depots or simple refineries, which were also the military needs of the Western powers in the past, there are relatively few other heavy industries."
"Oh, that's okay, don't worry about it for now." Yang Wendong didn't ask any more questions.
He didn’t know much about the history of Singapore in his previous life, but he also knew that there was a giant capital called Temasek in his previous life;
The original intention of Temasek's establishment was to develop Singapore's heavy industry, including high-risk, high-investment industrial fields such as steel, shipbuilding, and petrochemicals, to lay the foundation for future economic development.
At present, Singapore's heavy industry is not working but it is normal.
Wei Zetao continued: "The site for our factory is just ahead, with a total area of 600,000 square feet. This is the largest area that the Singapore government can promise around the Central District."
"We also help them find jobs around the Central District." Yang Wendong said: "Otherwise, how can we recruit so many people with academic qualifications if we go to remote places?"
Although many jobs in Changxing Industrial do not necessarily require people with academic qualifications, if they do, it is definitely better. The higher the average academic qualifications in a factory, the better the technical research and quality control. Compared with many labor costs, Changxing Industrial definitely pays more attention to quality. Of course, this also refers to the production department. If it is just porters, cleaners, etc., it will not be deliberately required. After all, recruitment must also take into account illiteracy. Even Hong Kong has begun to recruit disabled people. In some jobs, disabled people can Do that and leave it specifically to them.
Wei Zetao also agreed: "Yes, so everything has a balance. In a place like the Central District, it can only cover such a large area."
Yang Wendong said: "It doesn't matter. It's mainly about assembly anyway. Then build a high-rise building and place large-scale injection molding equipment on the first floor. The building strength should be stronger. Some small equipment can also be placed on the second floor and above, and warehouses and assembly workshops can be built. , just learn from Hong Kong.”
Although Singapore has done better than Hong Kong in terms of land policy, the place is so big after all, and there are so many industries. The light industry can only be built in buildings like Hong Kong. This is normal. It was the mainland in the previous life. Light industry has also begun to move upstairs.
"Understood, my plan is the same." Wei Zetao asked again: "Yang Sheng, there is another question, do you want to build a dormitory?"
"We won't build this one. There are enough people around the Central District and there are many houses." Yang Wendong shook his head and said: "This factory is not very big. Unless you have to, don't go to such trouble. If it doesn't work, just give some rent subsidies. ”
When he started his business in the early days, because in the remote Tsim Sha Tsui, many people lived far away and were very poor, they had no choice but to build dormitories. The same was true in Kwun Tong. In addition, the factory was too large and the surrounding buildings The group cannot cover so many employees, so we can only provide accommodation.
But later, as Hong Kong's economy developed, more and more real estate was built around the factory. Changxing Industrial also began to gradually cancel the accommodation policy. One was that it was risky, and the other was that management was too troublesome. Thousands of young people could still control it when they were working, but after get off work, When we get together, even the government dare not take it seriously.
Furthermore, when employees’ economic conditions are good, they will also pursue living outside. After all, although the dormitories are okay, they are still not as good as those outside in many aspects.
Nowadays, overseas, it is even less likely to be troublesome, even in Singapore, which is full of Chinese. It is good if you can provide a job with good pay. It is impossible to operate like you did in Hong Kong.
"Okay, it's good not to build a dormitory. It can also save some space." Wei Zetao replied.
The car quickly arrived at its destination, and there was still farmland in front of it. After getting off the car, Wei Zetao said: "This is where our factory will be in the future. There is a small village over there that needs to be demolished. The Singapore government is responsible for this, and we don't care about the process. , but since the land is free, we need to bear the demolition costs
As soon as the demolition is completed, the factory will start laying the foundation immediately, and it is estimated that it will be completed by the middle of next year. ”
"The speed is okay." Yang Wendong nodded and said: "Then complete the demolition as soon as possible, as long as the compensation is not outrageous, and reach the scale as soon as possible. This will be good for us and Singapore."
It is true that land is free, but free is also the most expensive. Behind free comes many future operating and tax conditions, which are somewhat similar to the requirements of the Shanghai stock market for Tesla and Disney in the previous life.
"Okay, if Singapore starts production as soon as possible, the production pressure in Hong Kong can be reduced a little." Wei Zetao also said.
Yang Wendong took another look and said, "Tell me if there is any progress here. We still have to build our first large-scale production base abroad. This place will also be responsible for the future markets in Southeast Asia and even Europe."< br>
Wei Zetao agreed: "No problem, I will record this in the monthly report every month."
"Okay." Yang Wendong nodded and said.
For the multiple subsidiaries within the Changxing Group, the person in charge needs to write a report about the company every month, including some important things. After all, it is impossible to go directly to the boss Yang Wendong for everything, and even so, it needs to be documented. to record.
After investigating the address of Changxing Industrial's future factory, Yang Wendong met the former Director Li under the leadership of Singapore government personnel.
"Hello, Li Sheng." Yang Wendong shook hands politely.
"Mr. Yang." Director Li also shook hands.
After the two chatted for a while, Director Li said: "Mr. Yang, the conditions for the investment progress of the Changxing Industrial Factory have almost been discussed. I think it is better to finalize it as soon as possible. What do you think?"
"Yes, I also hope to invest in Singapore as soon as possible." Yang Wendong nodded, and said: "Then I don't know when the other investments will be completed. This time I come to Singapore, if everything is almost settled, I also need to work with him. Several banks are negotiating follow-up financing plans.”
Investments involving tens of millions of dollars must go through banks, and even if Singapore has not yet reached an agreement, it still needs to negotiate with the bank early, which is a preliminary negotiation.
And Yang Wendong came here to complete these things as soon as possible. The longer it is delayed, the worse it will be. After all, more and more foreign capital is flowing into Singapore, and the possibility of competitors becoming more and more likely.
"Mr. Yang, there are no problems with your commercial plaza and hotel. The land price has basically been set. In terms of procedures, I will urge the relevant departments to complete the process as soon as possible this afternoon." Director Li continued: "It is the container terminal. This Recently, an American company also wants to participate. I also need to be cautious in business negotiations, especially since the American side can provide some management experience and technology.”
"Whether the US is involved, we have no experience." Yang Wendong showed no concern, saying: "I am also a small shareholder here. I don't care about other shareholders. I just hope that this matter will be settled as soon as possible."
In the port business, you are not the only one who has a vision, so it is normal for others to want to participate; and since you have not signed a contract with the Singapore government, it is normal for the other party to be hesitant.
Director Li smiled and said: "Well, in that case, I will arrange for people to sort out all the projects as soon as possible. There will be an official signing ceremony at that time. I hope Mr. Yang will also participate."
"No problem." Yang Wendong agreed.
As long as we gain a firm foothold in Singapore, we will have a base in Southeast Asia in the future. However, we don’t have enough capital right now, so we need to start operating well in Singapore first.
A week later, Yang Wendong participated in a national-level reception held by the Singaporean government and jointly announced a number of major investments. Yang Wendong's investments were only part of them, but the funds involved were as high as US$25 million.
The next day, the incident was quickly published in the local newspapers. Similarly, a day later, it was also reported in Hong Kong
PS: In reality, business negotiations are much more complicated than in novels, and the timeline will be very long. In novels, it is impossible to drag on for several years, so we decided quickly.
(End of chapter)