Return to 1958 and build a century-old giant

Chapter 393 Paper Industry Expansion and Wang Yongqing’s Request

One piece of knowledge that seems counterintuitive is that it is not true that the better the economy, the more expensive the goods are, and the worse the economy, the lower the goods are;

The reality is just the opposite. Prices in developed countries are low, while prices in poor countries are high. The service industry is a separate matter.

In the 1980s and 1990s, a TV in China was worth an average person's annual salary or half a house. At the same time, if an American's TV broke, they would just throw it away and replace it with a new one.

The fundamental reason is the result of industrialization. After the development of industrialization, even food can become much cheaper.

Liu Huayu said: "Yes, many industrial products are very expensive in Southeast Asia, but industrial countries such as Europe, America and Japan make a lot of money from them.

We also purchase a lot of industrial products from Carrefour in Taiwan, either directly from Hong Kong, eliminating middlemen, or by utilizing existing procurement channels, which significantly reduces costs.”

"Well, it seems that now is indeed the time for us to expand the market." Yang Wendong nodded and said.

The reason why supermarkets can beat hypermarkets is that they have strong purchasing power, which allows them to bypass middlemen and go directly to terminal manufacturers. They can also lower prices and reduce intermediate costs.

Liu Huayu smiled and said, "Yes, but there is still no security guarantee in Southeast Asia."

"Then let's start in Taiwan." Yang Wendong nodded and said, "With the population and economy of Taiwan, it's enough for us to develop for a few years. We'll look at other places later."

The best time to enter Southeast Asia is Singapore next year.

After Singapore was established, the economy was still not good because the British would basically leave some problems for a country that was no longer a colony. During this period, the Lee family was also trying hard to attract foreign investment.

The Lee family may not be that good, but at least they had a good reputation in the past life. So in order to safeguard the interests of Singapore, they will definitely not cheat the investment capital. In this way, at least I can invest with confidence.

As long as we have a firm foothold in Singapore and have a certain foundation, we can use this as the core, gradually make friends with wealthy businessmen in Southeast Asia, form an alliance of interests, and then slowly enter the Southeast Asian market.
Liu Huayu said: "Okay, the total market in Taiwan is still larger than that in Hong Kong. Although the economy is not as good as Hong Kong, our supermarket sells daily necessities. The consumption in this area is not very different from the economic gap, because the poor also need daily necessities, as long as they are not too poor."

"Yes, that's the truth." Yang Wendong smiled.

In the consumer goods industry, the consumption of a billionaire is not necessarily better than that of 10 ordinary people, so when running a supermarket, what matters more is the potential of the surrounding population.

Of course, the overall economy cannot be so bad that people cannot afford daily necessities. That would certainly not work.

Taiwan's economy has also been developing very rapidly in recent years, especially in the industrial sector. Although it is not as good as Hong Kong overall, due to factors such as government support, large population and large area, many foreign investors have come to invest in some high-tech factories, unlike Hong Kong, which is developing the lightest light industry.
Everyone then entered the supermarket. After walking around, Yang Wendong said, "The area of ​​this supermarket is much larger than the Changxing flagship store in Hong Kong."

"Yes, it's much bigger." Liu Huayu explained, "The land is cheap in Taiwan, and there are more people around each supermarket, so they are all large. Our current supermarket is only one floor, but the area is as high as 8 square feet. This is basically impossible in Hong Kong."

“Well, in the future, all supermarkets in Taiwan will have to be built this big, and parking lots will also have to be built. I think as the economy develops, there will be more cars.” Yang Wendong said with a smile.

In Hong Kong, in fact, it is also possible to build such large supermarkets in Kowloon Peninsula, but it is not very meaningful because a city like Hong Kong is suitable for medium-sized supermarkets, and then build more;
But the mainland in the past or Taiwan now are not suitable, especially in the city center. Take advantage of the low housing prices now and build a good one. Even if you don’t consider the real estate income in the future, the supermarket itself will be a huge return.

Wang Yongqing also understood what Yang Wendong meant and said with a smile: "Mr. Yang is so optimistic about the real estate market in Taiwan. This makes me feel that I should also invest in it."

"Haha, I am optimistic about it, but supermarkets and cinemas are my core goals, and real estate is just a by-product." Yang Wendong added: "Wang Sheng, you should focus on your main business. The income from real estate is very high for ordinary people, but for capable people, it is still unmatched."

This statement is not wrong. With Wang Yongqing's ability in the plastics industry, real estate is nothing. However, there are still few such people.
"Haha, I'm just talking. The funds for my own main business are a little insufficient." Wang Yongqing said with a smile.

Yang Wendong asked: "Didn't HSBC agree to lend you money? Is the capital still insufficient? Or is the chemical fiber production line I want too expensive?"

As his industry developed, the butterfly effect became stronger and stronger. Wang Yongqing's life was probably changed a lot by himself. At least he should have never had large-scale cooperation with HSBC in history.

"That's not the case." Wang Yongqing shook his head and said, "The plastics market has been fluctuating recently, and many plastics manufacturers have suffered heavy losses, which has also affected me."

"That may be because the economic crisis in the United States has spread to Asia." Yang Wendong paused and said, "The market conditions of plastic factories in Hong Kong don't seem to be very good either, and the same is true for the plastic flower market."

In the 60s, there was also an economic crisis in the world. This is normal. After an economic development is overheated, it will cool down. Appropriate cooling will also be beneficial to the future.

Wang Yongqing nodded and said, "Yes, now there are many people in the Taiwanese media mocking me, saying that I am too radical."

"Don't worry about those people, they are just opportunistic and trying to take advantage of others' misfortunes." Yang Wendong smiled and said, "I am still very optimistic about you. If you have any problems with your funds, I can invest more money, just like I said before."

"Mr. Yang, you already have a lot of shares in Formosa Plastics," Wang Yung-ching said with a smile.

Yang Wendong said, "Yes, it is a lot, but you don't have other shareholders. I am just a small shareholder. Besides, have you ever seen me interfere with your company? I have also invested in many companies in Hong Kong, and I follow the same principle and never interfere."

There are too many profitable industries in this world. Even if the time traveler recruits professional managers, it is impossible to run too many industries. Therefore, for some industries, it is better to directly invest in some potential stocks in the future.

In this way, you just need to spend money, and then invest resources to support it at the right time. It is convenient for everyone, and you may even become an angel investor in a region, gain a good reputation, and so on.

"Then I'll think about it." Wang Yongqing thought for a while and said. The economic crisis will inevitably lead to a global market contraction, and any company will need to prepare some funds to survive the winter.

"Okay." Yang Wendong nodded and said.

After saying goodbye to Wang Yongqing, everyone had fun in Taipei City that night.

The next day, we came to the Changxing Paper Mill on the east side of Taipei City, near the sea. As soon as we got off the car at the door, we smelled a smell.

Ma Jiayou, the head of Changxing Paper Mill, immediately explained: "Mr. Yang, Mr. Wei, this paper mill has this smell, and the current technology cannot collect all the waste gas."

"It's OK, better than the chicken farm in Hong Kong." Yang Wendong smiled and said, "In some industries, there is really nothing we can do. We just have to do our best."

If humans want to develop industry, it will inevitably bring pollution. We can only say that everything needs to be balanced. We cannot over-care for the economy or the environment. The deindustrialization of some Western countries a few decades later is also closely related to some environmentalist white leftists. Of course, there may be other forces behind these people.
Ma Jiayou then immediately took out two masks and said, "These are 3M masks imported from the United States. They have a certain filtering effect on odors."

"Thank you." Yang Wendong said politely.

After putting on safety protective measures, Yang Wendong followed Ma Jiayou to inspect the paper mill. However, Ma Jiayou did not allow Yang Wendong to go to some potentially dangerous areas, and Yang Wendong would not take the initiative to cause trouble.

After reading it once, Yang Wendong asked: "What is the current production capacity of the factory? I heard that it is a little insufficient?"

"Yes, at the moment, it's not enough." Ma Jiayou replied: "After our Qingfeng brand small packaging paper was launched, it was so popular that people from Europe, the United States and Japan all sent people to ask me for it. Now I am so busy that I don't even have the production capacity to supply A4 paper to Hong Kong Changxing Industrial. At present, other office papers have also stopped production, and the same goes for normal toilet paper."

"That's good. Are you ready to expand production capacity?" Yang Wendong asked with a smile.

Small-packaged facial tissues will surely be popular once they are released, because they are so convenient. People need them when they are on business trips, traveling, or even dining out, especially women.
In fact, Yang Wendong had thought about facial tissue in 58, but without a paper mill, he couldn't produce it. Even if he did, it would just be a wedding dress for other investors. Compared with sticky notes, the market for this thing is much larger.

Ma Jiayou said: "Yes, the current plan is to prepare to put another production line with a capacity of 30 tons online. I will also submit the relevant plan to the Hong Kong headquarters in the near future."

"30 tons? Is that enough?" Yang Wendong asked.

Even though a small package of facial tissue may only weigh a dozen grams, the demand is in the billions, so the demand for paper is also very astonishing.

Ma Jiayou said: "I have done research on this data. Although our facial tissues are very popular, it will take time to sell them globally. It should be enough in at least one or two years. If it is not enough in the future, we can invest in building a new factory."

"Okay, that's fine, you decide." Yang Wendong nodded.
He would not subjectively interfere with the behavior of his subordinates for matters that he had not actually participated in investigating. Even if this matter was wrong, at most he would just increase production capacity later.

At this time, Wei Zetao said: "But we still have a problem now, that is, whether this equipment uses waste paper or pulp."

"Do you mean to use log pulp?" Yang Wendong also understood what his subordinates meant.

Wei Zetao said: "Yes, from the perspective of business development, we think we should use paper pulp. First, facial tissue is generally used on the mouth, hands, and even on the surface of babies' bodies, which has higher requirements for environmental protection and skin touch. In this regard, wood pulp paper is definitely better.
The second is brand building. You also said that you want to build the Qingfeng brand into a mid-to-high-end paper product. Now that we have a unique and in-demand product, we should do it even better. Moreover, European and American users now care more about whether the toilet paper is made of raw wood pulp, so our facial tissue will care even more about it. "

"You are right." Yang Wendong nodded and said, "As long as the Qingfeng brand is established, the extra cost will not be a big deal."

Wei Zetao went on to say: "This log pulp production line has less waste paper processing steps, so the production line cost is lower and the environmental protection cost will also be reduced;
If we buy raw pulp overseas, the price will be much higher. Overall, the total cost will increase by about 25%. "

"25%?" Yang Wendong said, "Facial tissues are not very expensive, and European and American users should not be sensitive to this. So, Mr. Ma, you should sort out all the information and data as soon as possible.
As long as there are no problems, the production capacity here needs to be expanded as soon as possible. This market is still blank and we need to occupy it as soon as possible. "

In any blank industry, the first successful company will be able to make a living and even after the brand is established, as long as it doesn't make big mistakes in the future, it will be basically safe.

It will be much easier to build a reputation with facial tissue and then move into other paper industries. In the future, there will be plenty of opportunities for other similar new creative products.

"Okay." Ma Jiayou immediately agreed with a smile.

After staying at the paper mill for half a day, Yang Wendong and his team went to the Keelung Shipyard, which was also starting to build two new ships for Changxing Shipping.

However, it was a bit too early and the various parts had not yet been formed and assembled, so Yang Wendong only watched the construction of another new ship of more than 1 tons.

After almost everything was done, he was originally preparing to return to Hong Kong, but was stopped by Wang Yongqing who came from Taipei.

"Mr. Wang, are you looking for me so urgently?" Yang Wendong asked curiously.

Wang Yung-ching said, "Mr. Yang, I have considered your suggestion yesterday. I can sell you another 5% of Formosa Plastics shares. As for the price, we will revalue it.
But you have to promise me one thing."

"What's the matter?" Yang Wendong was also very excited.

Wang Yung-ching said, "I need you, Mr. Yang, to lend Formosa Plastics another $300 million at a low interest rate."

PS: Please give me a monthly ticket
(End of this chapter)