Reborn, back to a small county town to become a wealthy family

Chapter 791 Resolving Disputes
Jiang Yuanshan returned around 11 o'clock, so he arranged to meet Luo Yang in the afternoon.

After having dinner, Luo Yang went to Yuanfan Group and met his father-in-law in the chairman's office.

"I drank too much last night, so I'll brew a pot of strong tea to soothe my stomach."

As Old Jiang invited his son-in-law to sit down, he kept brewing tea.

"Perfect timing, I drank quite a bit last night too."

As Luo Yang sat down, he smiled and said, "Yesterday afternoon I took a stroll around Western Sichuan and ran into my uncle-in-law. He took me out for dinner at the scenic area last night."

"When I called you, you were at a dinner party?"

Jiang Yuanshan casually asked, "With the leaders of Xishu Town?"

"Yes, the top official in their town, the director of the scenic area, and the head of the local police station."

As Luo Yang spoke, he handed a cigarette to Jiang Yuanshan. "They say you can judge a person's drinking capacity by their grassroots level. I saw it for myself last night. Everyone there could drink over a pound of liquor. If it weren't for Dong Dawei, who was with me, helping me out, I would have been lying on my way back to the city."

"Hahaha"

After hearing his son-in-law's words, Jiang Yuanshan burst into laughter.

"You can tell how people are drinking by observing their grassroots level. That's a very apt description."

Old Jiang chuckled and said, "But the pressure of drinking with your superiors is even greater. If they drink half a jin, you have to drink at least a jin to keep up appearances. You'll definitely experience that later."

After saying that, he pushed the cup of tea that had been poured to Luo Yang.

"Dad, are you really sure?"

As Jiang Yuanshan lit a cigarette, Luo Yang asked, "Are you planning to relocate the entire Yuanfan New Energy battery factory to Jinling?"

"It can't be said that they moved there entirely."

Jiang Yuanshan revealed the truth: "I will leave the traditional battery production line in Yangshi, and I will also leave one production line for the new energy battery production line here. The rest, including research and development, will be moved to Jiangning Development Zone."

"In the future, the production capacity of traditional batteries will only decrease, and it can even be said that there will be no more traditional batteries in the true sense."

Luo Yang thought for a moment and said, "According to the current trend, the future will inevitably belong to lithium batteries, and the market for lead-zinc batteries will only get smaller and smaller. Even if you keep the production line, it probably won't last more than a few years."

Just like the current Yuanfan electric vehicles, which still use traditional batteries, they will inevitably be replaced by lithium batteries in the next few years.

"There's nothing we can do about it."

Jiang Yuanshan smiled and said, "Old technologies are being replaced by new technologies, just like traditional mobile phones are gradually being replaced by smartphones. This is an inevitable trend that no one can change."

After his initial reaction, he paused for a moment, then looked at Luo Yang with surprise.

"What, you seem to have another suggestion?"

"Well, I have some personal opinions."

Facing his father-in-law, Luo Yang did not hesitate and said directly, "Because I judge that Xingguang's future lies in the field of new energy battery technology. If we do it well, it will definitely be worth hundreds of billions, or even trillions. I believe you will agree with my judgment."

After pondering for a moment, Jiang Yuanshan nodded: "Although I personally think this judgment is a bit exaggerated, I am still confident that Yuanfan New Energy Battery will reach a scale of 10 billion yuan in the future."

In Lao Jiang's view, the new energy industry will flourish within two or three years, and Yuanfan New Energy Battery can take advantage of this opportunity to go public and increase its market value to several billion. After several more years of development, the company's market value can be increased to more than 10 billion. The chances are very high.

He still couldn't imagine that more than a decade later, a new energy battery company called CATL would have a market value of 1.83 trillion yuan.

This company was only established last year, and in some ways, it is not as good as Yuanfan New Energy Battery.

"Whether it's a company worth tens of billions or hundreds of billions, it will be a large conglomerate."

Luo Yang knew that arguing with his father-in-law about the future was pointless, so he put the dispute aside for the time being and continued, "You should know that what we plan to set up in Jiangning Development Zone is a new energy vehicle industrial park, not a new energy battery industrial park."

He paused deliberately at this point, giving Jiang Yuanshan time to process the difference between the two terms.

After a moment, without waiting for his father-in-law's reply, Luo Yang continued, "In my opinion, you can completely relocate the new energy vehicle power battery division to Jiangning Development Zone. Of course, the talent issue you mentioned before is also very important, so relocating the R&D there as well is absolutely the right thing to do."

"Power batteries for new energy vehicles?"

Jiang Yuanshan paused for a moment, then muttered, "Didn't we already build a factory like this in Minhang District of Shanghai?"

To provide components for Tesla, Luo Yang and Jiang Yuanshan initially invested in a new energy vehicle power battery factory, which was built in Minhang High-tech Zone. They later moved a research and development laboratory there as well. Now, they are not only researching automotive power battery technology, but also conducting research and development on power batteries for drones.

So after hearing Luo Yang's personal thoughts, Jiang Yuanshan found it strange.

According to this suggestion, it's not really a relocation; it's just a matter of replicating the factory in Shanghai.

"Dad, it's not as simple as just copying."

After listening to Jiang Yuanshan's doubts, Luo Yang explained, "First of all, the factory in Shanghai is specifically for supplying Tesla's new energy electric vehicles. However, there are more than one new energy electric vehicle company in China. A number of domestic new energy vehicle brands, including BYD, will inevitably occupy a large share of the market in the future. Therefore, the production capacity of the factory in Shanghai will definitely not be enough!"

That's being modest, since traditional gasoline-powered cars still dominate the market.

Who would have thought that ten years later, BYD would rise to become one of the super giants in the new energy vehicle industry? Even if Luo Yang dared to say it, Jiang Yuanshan wouldn't believe it.

However, when considering the overall market, his viewpoint is certainly valid.

"So, according to you, the factory we replicate in Jiangning Development Zone will primarily be supplying other new energy vehicle brands in the short term?"

As expected of Jiang Yuanshan, he understood the meaning behind Luo Yang's words in just a few minutes.

Building a new energy vehicle company from scratch is not something that can be accomplished in just one or two years. Even if you succeed, brand building is not something that can be done in a short period of time.

Therefore, the demand for power batteries in the new energy vehicles that he and Luo Yang invested in together was definitely not large in the first few years.

However, the investment in the new energy vehicle industrial park in Jiangning Development Zone cannot remain unprofitable for several years; otherwise, the underlying logic of the development zone providing investors with low-priced land according to policy would not hold true.

Yes, in a development zone of the level of Jiangning Development Zone, if you want to acquire land cheaply, you have to meet the land use efficiency requirements. This efficiency includes indicators such as output value and tax revenue achieved within a specified period.

Without these, why would anyone offer you a preferential land price?

And why should we give you preferential loan policies?
Even when Tesla entered Shanghai, it was required to sign a performance-based agreement with the Shanghai municipal government, not to mention Luo Yang and Jiang Yuan's investment in the new energy vehicle industrial park in Jiangning Development Zone.

Therefore, by replicating the Shanghai company to the Jiangning Development Zone, sales and tax payments can be generated in a short period of time.

Moreover, with the rise of the domestic new energy vehicle industry, the market demand for new energy power batteries will also increase. At this time, whichever battery manufacturer has the leading technology and the production capacity can keep up will be able to seize the initiative.

“Dad, once the new energy vehicle industry takes off, our industrial park will not just be located in Jiangning Development Zone.”

Luo Yang then offered his second reason: "At that time, we will be investing in production bases in the Southwest, Central Plains, South China, and North China regions. Are you going to repeatedly relocate your Yuanfan New Energy Battery Plant?"

"Bullshit!"

Jiang Yuanshan laughed after hearing this reason, then joked to himself, "Couldn't we just copy a branch factory over there?"

He smiled and pointed at Luo Yang.

Hearing that, I immediately understood.

Since we're going to copy something, we might as well copy something more practical that fits the name of the industrial park.

"According to your statement, Yuanfan New Energy Battery Plant does not need to be relocated, but the new energy vehicle power battery production line can be separated."

After laughing, Jiang Yuanshan concluded, "As for the Jiangning Development Zone, we just need to replicate the factory in Minhang there. As for the scale, we'll set it according to the needs of the industrial park."

"Dad, your summary is spot on."

Luo Yang picked up his teacup and took a big gulp.

“Yangyang, yesterday He Gaoguan and I agreed in front of the leaders that we would build this industrial park.”

After his son-in-law put down his teacup, Jiang Yuanshan put away his smile and said seriously to Luo Yang, "If we just replicate the new energy vehicle power battery factory, there won't be many companies in the so-called upstream and downstream industrial chain of this industrial park. How are we going to explain this to the leaders?"

"That's not a big problem."

Luo Yang smiled and said, "We're simply putting in one or two final assembly lines, and there will be no shortage of companies in the upstream and downstream parts supply chain."

There are quite a few, such as raw material suppliers that provide various raw materials to car manufacturers, such as non-ferrous metals like steel, aluminum, and copper, non-metallic materials like plastics, rubber, and fibers, as well as special materials like glass and ceramics.

In addition, there are auto parts manufacturing companies that process raw materials into various automotive parts, such as engines, transmissions, suspension systems, braking systems, and electronic systems.

Automotive parts manufacturers can be divided into original equipment manufacturers (OEMs) and Tier 2 suppliers. OEMs supply parts directly to automakers, while Tier 2 suppliers purchase parts from OEMs and then resell them to other companies.
These companies are all suppliers for the final assembly of a car.

After listening to his son-in-law's explanation, Jiang Yuanshan couldn't help but nod and say, "If that's the case, then it really does solve two problems at once."

One of them must be what he just mentioned, the promise he made to the leader with the high-ranking official He.

Luo Yang had a pretty good idea of ​​what the other one was referring to.

"The question of where to place new energy vehicles in the future has also been largely resolved."

Sure enough, Jiang Yuanshan smiled and said, "We don't need to argue about this anymore."

Now that Luo Yang has the idea of ​​setting up an assembly line, he must have given up on the idea of ​​acquiring a traditional car company.

According to Luo Yang's previous plan, he wanted to acquire a traditional gasoline vehicle company, or take a controlling stake, and then upgrade and transform the gasoline vehicle production line into a new energy vehicle production line.

Like Kunpeng Technology, Luo Yang believes in controlling as many core technologies as possible.

The reason I changed my mind was because I decided to make smartphones.

There's really no way around this, because a smartphone involves so many core technologies that are too advanced. Without hundreds of billions of dollars and more than a decade of development, it's simply unthinkable.

So he changed his mind.

(End of this chapter)