Rebirth 99 to become a car giant.

Chapter 415 Nanshan Carbon Fiber, Price Destroyer

While everyone was still paying attention to the new models of Xingchen Motors and the hot sales of Xingtu, Cao Yang came to Chang'an City in a low-key manner.

Nanshan Carbon Fiber will hold a production launch ceremony in a very high-profile manner.

As the most representative carbon fiber in the new material industry, it has received increasing attention in recent years.

After all, whether it is civilian products or military products, there are many places where carbon fiber can be used.

Even if it weren't for the high price of carbon fiber, there would be many more areas where this material could be used.

"Mr. Cao, there are quite a few people attending the commissioning ceremony today, and they all have relatively high levels."

"I have sorted out all the information about the relevant personnel, please take a look in advance."

Tomorrow is the production launch ceremony of Nanshan Carbon Fiber.

For China, this is the first time it has achieved localization of high-end carbon fiber.

And it is not an entry-level high-end carbon fiber like T300, but directly to T700.

This can already be regarded as the international mainstream level.

Of course, it’s not that T800 cannot be produced, it’s just that these materials are not used in general products and are not suitable for external publicity.

Prior to this, there was no way to purchase any T800 carbon fiber through formal channels in the Chinese market.

So there is no point in promoting it.

Anyway, those who buy this material are special companies, and they naturally already know that Nanshan Carbon Fiber can produce products that are restricted from sale by Toray and other manufacturers.

"So many leaders from ministries, commissions and localities attended."

Cao Yang was also quite surprised when he looked at the long list.

This is the list of people who have reached the upper level, there are already so many.

It can be seen that all parties really attach great importance to the Nanshan Carbon Fiber factory.

This level of attention even exceeded Cao Yang's expectations.

"Our first batch of trial-produced carbon fibers have been confirmed by authoritative organizations and can reach the same level as Toray T700."

“That’s why so many leaders came to participate in the production ceremony of Nanshan Carbon Fiber this time.”

"Although it seems to be just the commissioning ceremony of a factory under our group, it has different meanings for the whole of China."

Cao Yang can naturally understand what Mi Ying said.

It’s just that I don’t have much contact with all parties, so seeing such a long list now makes me a little uncomfortable.

"Okay, let me get familiar with it first."

If Cao Yang couldn't recognize the ordinary attendees, forget it.

Important personnel must not admit their mistakes.

Chinese people still take these things seriously.

Fortunately, since all parties attach great importance to this event, Nanshan Carbon Fiber does not need to worry too much.

Chang'an City directly arranged a team to assist in arranging various matters for the commissioning ceremony.

They are obviously better at reception work than the people of Nanshan Group.

……

"Leader, there were quite a lot of people in attendance at Nanshan Carbon Fiber's production commissioning ceremony. In the future, when some new factories of Nanshan Group are put into production in Yangcheng, can we also consider raising the level and emphasis?"

Luo Yi has been following Liu Tianwu for many years.

Therefore, whenever I have any ideas, I will take the initiative to report them to Liu Tianwu.

To a certain extent, he was not only a secretary, but also a staff member, providing some advice to Liu Tianwu.

"For Chang'an City, the Nanshan Carbon Fiber factory is indeed of extraordinary significance."

"This will not only provide Chang'an City's aerospace industry with a large amount of relatively cheap and stable carbon fiber, but also take this opportunity to expand the development of the new materials industry."

"The most important thing is that Nanshan Carbon Fiber is so impressive this time. It has directly broken the monopoly and blockade of international giants and independently developed and produced high-end carbon fiber."

"But what you said makes sense. Even without these factors, Chang'an City will invite a lot of people to attend."

"They do this better than us."

There is no difference without comparison.

In the past, Cao Yang had never wanted to make some groundbreaking ceremonies or commissioning ceremonies too formal or special, so Liu Tianwu did not coordinate the attendance of higher-level leaders most of the time.

But now it seems that this approach needs to be appropriately changed in the future.

"According to what I know about Nanshan Group during this period, they will build a large-scale battery factory in the future and will also invest a lot of manpower and material resources in the semiconductor field."

"The investment in any one of these factories is billions, or even tens of billions."

"It should be possible for us to invite more people to participate when the time comes."

Seeing that Liu Tianwu had listened to what he said, Luo Yi immediately changed his explanation and settled the matter.

However, for Nanshan Carbon Fiber, Luo Yi is definitely not the only one who is paying attention to such a big noise.

"President, the Huaxia Branch reported that the Nanshan Carbon Fiber Factory has officially been put into production."

"Some agents in China have begun to reduce their material orders for T300 and T400."

"Can we further adjust prices to stimulate sales?"

As head of the sales department, Toray's Taro Kondo is now feeling a lot of pressure.

Although Nanshan Carbon Fiber's factory has only officially started mass production in the past few days, they have already received some relevant information before.

That production capacity will directly usher in a new situation in the price of carbon fiber.

Even a price collapse is possible.

After all, the demand for high-end carbon fiber was not that much in the first place, but now China has built a large factory with a capacity of [-] tons in one go.

Wouldn’t this immediately change the supply and demand relationship in the market?

Why do some capitalists rather throw away milk than sell it for free or at a low price when a crisis comes?

It’s just to prevent the price system from collapsing.

Similarly, when the production of red wine in Europe increased in later generations and the market slumped, money was devoted to recycling the wine for destruction instead of lowering the price.

Now that Nanshan Carbon Fiber has entered the carbon fiber market as an outsider, it will immediately lead to an oversupply of some materials.

Price falls are inevitable.

Taro Kondo is definitely unwilling to cut his own production to control prices, because he knows that this move is useless.

Then you can only passively participate in the price war.

Otherwise, wait to give up the market.

“Adjusting prices is definitely necessary, but how?”

Sagano knew about Nanshan Carbon Fiber before, so when the shoes landed, he was not particularly panicked.

Of course, that's because they feel they can still make money with higher-level materials like T800.

The research and development of T1100 materials is also accelerating, and the results are expected to be available soon.

When the time comes, continuing to produce high-end products will also make the company more comfortable.

“No matter how much the price of Nanshan carbon fiber is, we will keep the same price as them.”

"We are the originator of carbon fiber, and even the standards of this industry are set with reference to our products."

"In this case, as long as our products maintain the same price as Nanshan Carbon Fiber, I believe most customers will continue to choose us."

Before Taro Kondo came to report to Saganu, he already had some plans.

Otherwise, I would not dare to come over and bring up this topic easily.

Within Toray, this is a topic that no one wants to mention lightly.

"Your proposal is good, but what if Nanshan Carbon Fiber lowers the price to a level lower than our cost price?"

Saganu's worry is obviously not unfounded.

Many companies in China are price killers.

When they can produce something that no one can produce domestically, the price of imported goods will inevitably plummet.

There are no exceptions.

The high-end carbon fiber this time is obviously similar.

"President, that's what I think about it."

Kondo Taro said while organizing his words quickly, "Cost accounting has different costs using different algorithms."

“Our R&D costs and equipment amortization have been spread out over the years.”

"For the carbon fibers that China can produce at T700 and below, we use the most extreme method when calculating costs. If we can reduce the price to a lower price than Nanshan Carbon Fiber, that would be even better."

“At that time, Nanshan Carbon Fiber was so squeezed that it couldn’t survive.”

"We can even consider directly investing in building a factory in China to produce carbon fiber below T700."

"In this way, investment in environmental protection can be greatly reduced, and labor costs can also be reduced a lot."

"Even if the old equipment is relocated, the investment in equipment will be very small."

Listening to Kondo Taro's words, Saganu's eyes slowly changed.

This idea seems feasible.

Relocating the old Japanese production equipment to China will just make room for the future T1100.

At the same time, it can take advantage of China's cost advantage to produce similar products and suppress China's local manufacturers.

"Please arrange for us to go to China for an inspection in the near future to see how feasible this plan is."

Soon, Saganu made a decision.

However, even if Toray takes action, there is certainly no way to stop the continuous decline in carbon fiber prices.

Guangwei Group, which mass-produces fishing rods, has a very intuitive feeling about this.

"Mr. Chen, there is currently no problem with the supply of T300 carbon fiber, and the price has dropped by 35% compared to before."

"If Nanshan Carbon Fiber's current products are all T600 and T700, and no T300 and T400 are produced, I estimate that the price could directly drop by more than half."

"But when our own T300 and T400 carbon fiber factories are put into production, the situation will be completely different."

As Chen Liang's nephew, Chen Qingxiang is not only the sales director of Guangwei, but also the purchasing department.

Proper nepotism.

However, this is also a very common phenomenon among many private enterprises.

"Choosing to cooperate with Nanshan Group this time is of great significance to our company."

"Not to mention anything else, just the reduction in the material cost of fishing rods can make our profits much better."

"We can even launch a price reduction promotion for carbon fiber fishing rods to take our sales to a higher level."

Chen Liang is in a very good mood recently.The company's business is booming and full of prospects.

This is definitely a good thing.

“Nanshan Carbon Fiber’s T600 and T700 have already achieved mass production, and we will be able to directly launch high-performance fishing rod-related products based on these two materials.”

“While being lighter, the strength can be further improved.”

"For anglers, it should be something worth looking forward to."

Chen Qingxiang himself is a fishing enthusiast.

And what I like most is sea fishing.

Don’t think that fishing is a cheap thing.

In fact, on the contrary, the hobby of fishing is actually very expensive.

A good fishing rod can easily cost several thousand yuan.

In addition, there is a series of supporting equipment, which are not cheap when done well.

It's not something ordinary people can afford.

Of course, the threshold for fishing is low.

If you don’t have money, you can buy a bamboo pole yourself, spend a few dollars to buy fishing lines and hooks, and get some earthworms, and you can go fishing directly.

It can be said that abundance and frugality depend on people.

"What you say makes sense. The company should also consider expanding the production capacity of the fishing gear factory."

"Furthermore, after the localization of carbon fiber, our export advantages will become even more obvious in the future."

"At that time, we can make a good move into the international market."

A seemingly inconspicuous technological breakthrough in carbon fiber materials will bring a series of industrial impacts.

Whether it is fishing gear, golf clubs, or other products that require the use of carbon fiber, the original pattern will undergo huge changes.

"Well, I will go to Chang'an City next week to thoroughly finalize future material orders with Nanshan Carbon Fiber."

“Then some planning matters for the new factory can be determined.”

Chen Qingxiang is also full of energy now.

The company has a future and I have a way to make money.

……

"President, the shipping price of T700 is less than half of what it was before."

"But many customers still want to bargain with us."

"This situation is a little different from what we thought before."

Taro Kondo has been very worried these days.

According to his original plan, Toray took advantage of its industrial advantages to directly and proactively start a price war with Nanshan Carbon Fiber to see if it could rub Nanshan Carbon Fiber on the ground.

But the current situation is completely different from what was expected.

This made him feel a little flustered.

“It’s already less than half the price, why are there still customers thinking of lowering the price?”

"Have they forgotten the scene when those people were begging to order?"

Saganu stared at Taro Kondo very unhappily.

But this is obviously of no use.

“Nanshan Carbon Fiber’s T700 is now on sale.”

"Their current price is only [-]% of our original price, and if the quantity is large, there are said to be additional discounts."

"As a result, buyers from all walks of life will naturally start to wait and see."

Saganu was not satisfied with Taro Kondo's explanation and asked directly: "Didn't you propose to directly drop the price to a price that the other party could not achieve and bring down Nanshan Carbon Fiber?"

"Why is the current situation completely different from what you said?"

Hearing this, Taro Kondo was speechless.

"President, I didn't expect Nanshan Carbon Fiber to be so ruthless, and they directly lowered the price to [-]% of ours."

"In this way, even if we don't make any money and recalculate the cost, it will still be 50% higher than him."

"If we want to have a price war with them, we will continue to lose money, and the area of ​​loss will be very large."

When Taro Kondo said this, Saga slave became depressed.

However, this solidified his idea of ​​going to China to invest and build a factory.

In his opinion, as long as Toray can build a factory in China, the cost will be lower than that of Nanshan Carbon Fiber.

After all, their R&D costs have long been amortized.

To a certain extent, the emergence of Nanshan Carbon Fiber can be regarded as an investment for China.

And it’s still an investment with good technical content.

A few years ago, it would have been impossible for anyone to invest in factories in China to produce high-end carbon fiber products such as T600 and T700, even if you asked Toray.

……

"Mr. Cao, Nanshan Carbon Fiber's production capacity for the next year has basically been secured."

"I think we can start building the second phase of the factory ahead of schedule."

As the general manager of Nanshan Carbon Fiber, this period was definitely the peak of Zeng Jianying’s life.

On the day it was put into operation, many leaders from provinces, cities, and ministries came.

In the domestic carbon fiber circle, the name of Nanshan Carbon Fiber is already well-known.

This is already very remarkable.

After it was put into production, customers from all walks of life flocked to it, and in just one week, the production capacity for the next year was fully booked.

For things like raw materials, if ordered from abroad, it usually takes 3 to 6 months to order, or even longer. It is not surprising.

If placed in China, it usually takes 3 months.

Of course, it is not impossible to shorten the cycle to one month, or even half a month, for items such as rebar that have a large amount of stock.

For example, for carbon fiber, if the order quantity is relatively large, it used to take half a year.

Now the business of Nanshan Carbon Fiber is very good, and the order cycle is also three months.

"Do you have any ideas about the types of carbon fiber produced in the second phase?"

Cao Yang also knows something about the current situation of Nanshan carbon fiber.

So after hearing Zeng Jianying’s suggestion, I didn’t feel surprised.

"Our T1100 material is ready for production in the laboratory."

"I think a small-scale production line with an annual output of several hundred tons can be built in the second phase of the factory to produce T1100."

"On the one hand, through the construction of this small-scale production line, we can better verify the conditions required for mass production of T1100."

"We can also make some improvements in a more targeted manner for some problems that arise during the experiment."

"When the third phase of the factory is built, the production scale of T1100 can be expanded."

"In addition, T800 carbon fiber can be considered for large-scale production in the second phase factory."

"At that time, we can catch Toray and other companies off guard and grab orders from them directly from the international market."

"Of course, there is a lot of market demand for T700 carbon fiber, so we can appropriately consider expanding production."

Obviously, in Zeng Jianying's plan, the products produced by the second-phase factory must be higher-end than those of the first-phase factory.

Only in this way can the cost be recovered quickly.

The current products of the first-phase factory have a 30% profit margin due to their relatively low selling prices, but in the field of high-tech materials, they are not considered huge profits.

But T800 or T1100 is different. These materials can earn you double the profit, which is completely normal.

Even a profit of several hundred percent is not surprising.

Especially for T1100, if Nanshan Carbon Fiber can be the first to achieve large-scale mass production, it will definitely be able to achieve high profits of 300% or even 500% in the international market.

In this case, the production line is simply a money printing machine.

"You come up with a specific plan, and then communicate with Nanshan Equipment to see how to further improve the automation rate and yield rate."

“Taking this opportunity, we will also bring Nanshan Equipment’s carbon fiber production equipment to the market and provide equipment to more customers in need.”

Caoyang has never given up its dream of becoming a major equipment manufacturer.

No matter what product it is, it is impossible not to need production equipment.

All walks of life in China are relatively weak in this regard.

Even among those sewing machines that produce cheap shirts, many are produced by Japanese companies.

Not to mention chips, batteries, steel and other related equipment.

"no problem!"

"Nanshan Equipment has now provided equipment for two new factories to Nanshan Carbon Fiber and Guangwei."

"This is enough to attract other carbon fiber manufacturers to shift their focus from abroad to China."

"By taking advantage of the opportunity to sell equipment, we can also better understand the development status of other domestic competitors."

“We can also be more targeted when setting selling prices.”

Zeng Jianying is naturally very aware of the importance of the equipment industry.

Whether the second phase of the factory can be successfully constructed or not, Nanshan equipment is definitely the most critical factor.

"We either don't make carbon fiber, or we have to do our best if we do."

"Now that our products are on the market, how have competitors responded?"

Nanshan Group has so many things going on every day, and it is naturally impossible for Cao Yang to worry about everything.

So even though carbon fiber is very important, he is not familiar with some specific market conditions.

"The price of imported carbon fiber is falling day by day. Toray is probably so angry that he wants to scold us to death."

"Especially the T700, which was the most high-end product in the Chinese market in the past, the price has dropped by 8%."

"If they can still hold on, then we will continue to cut prices until Toray is squeezed out of the Chinese market."

Although Zeng Jianying was born as a professor, her role changed very quickly.

So far, Cao Yang is quite satisfied with Nanshan Carbon Fiber under his management.

"When our production capacity is sufficient, we can further start to compete with them for orders in the international market."

“From now on, let Chinese manufacturers produce materials like carbon fiber!”

(End of this chapter)