Go back in time and be a chaebol

Chapter 1264 Nanyang Manufacturing (Third update, please subscribe)
"We believe that through the cooperation between our two countries, we can let the world see that the East and the West can coexist peacefully..."

Watching Patolichev giving a speech on TV, Yang Yuankai didn't even know how to describe his feelings. As the chairman of Changhong Electric, he also received the minister and reached a technology transfer agreement with them.

According to the agreement, Changhong Electric transferred a color cathode ray tube production line to the Soviet Union. Although the price was US$300 million, the Soviet Union did not need to pay in cash; they could pay with oil.

Did Changhong Electric make money from this business?

The answer is yes. Not only did they make money, but they also got the obsolete 15-inch color cathode ray tubes.

"I really don't understand why these Russians would introduce such outdated technology."

The reason why Yang Yuankai said this is that 15-inch color TVs have been completely eliminated in the market. The smallest color TV on the market is 17 inches, and the mainstream products of Nanyang TV manufacturers are 21-inch color TVs.

As soon as he finished speaking, his grandson beside him said seriously:

"I heard from my father that when the Soviets produced consumer goods, they did not need advanced products that met market demand, but were based on providing such products to the people - as long as they had them, that was enough! And when the Soviets bought these color TVs, they never cared about the size, as long as they had them, that was enough..."

Li Yijie stretched out his hand and gestured:

"That's about it. It's better to have it than not to have it."

Although the young Li Yijie didn't know why this happened, his words made Yang Yuankai stunned. After a long while, he said:
"Well, maybe it's because the Soviets and we are not the same kind of people at all!"

The reason why he felt so emotional was that the Soviet trade delegation had transformed itself into a harvester of backward technology and production equipment - purchasing and introducing a large number of backward production equipment and technology in Southeast Asia.

They had color TVs, refrigerators, and of course electric sewing machines and other textile equipment. The most frustrating thing was that they also purchased a factory with an annual output of 10 tons of detergents in an overall manner. The factory was originally the production capacity that United Chemical was preparing to eliminate and planned to move to Siam, but the Soviet Union simply bought it.

What were the results of the Soviet foreign trade delegation’s visit to Southeast Asia?
Just in a few weeks, hundreds of millions of dollars were spent, and this money was provided by Nanyang in the form of credit, and the Soviet Union repaid it with oil and heavy machinery and equipment. Although the Soviet Union's mechanical technology was backward, their technical level in some heavy machinery and equipment was not only leading the world, but also relatively cheap. For Nanyang, importing those heavy machinery and equipment would help improve Nanyang's industrial level.

Therefore, using old technology and production lines to import large equipment from the Soviet Union through barter trade is undoubtedly a very cost-effective deal.

All of this was undoubtedly extremely unfamiliar to Yang Yuankai, but of course, this also made him see opportunities.

"However, we can eventually eliminate some of the outdated technologies and transfer them to the Soviet Union."

As a businessman, it is natural to explore the final value of the product to the greatest extent possible. This is the duty of a businessman.

"It can't be too backward. If it is too backward, no one will want it."

At this time, the grandfather and grandson were watching the news on TV, talking about business while watching TV. Looking at his grandson who was chatting about business with him like a little adult, Yang Yuankai's face was full of pride.

Although this kid is still very young, the small tape and cassette recorder he invested in a few years ago has become a popular product in Europe and the United States. The Walkman launched by the company this year based on it has become popular all over the world. In the United States alone, more than 1000 million units have been sold. Now almost every teenager in the United States has a Walkman.

This kid has an extraordinary intuition in doing business, somewhat like his father.

"Yes, so we need to strike a balance. We can use relatively backward products to maximize their final value, but they cannot be too backward that the other party is unwilling to purchase them. Of course, we also need to prevent them from developing their own products..."

While the two of them were talking about business, the news about the South Korean president's visit to Taiping appeared on the TV. Looking at the short, thin guy in the news, Yang Yuankai said to his grandson beside him:
"Yijie, you see this guy is not simple."

"why?"

"A true man is one who can bend and stretch. When he came to visit our Changhong, he begged me with an extremely sincere tone to invest in South Korea, even if it was just to invest in a small tape recorder factory. It's really not easy for a head of state to go to such lengths to attract investment!"

Listening to grandpa's answer, Li Yijie asked:
"Then Grandpa, do you agree?"

Yang Yuankai shook his head and said:

"I just promised him that I would consider it. The time is not yet ripe for investing in Korea!"

The time is not right yet!

In the past week, what Park Jung-woong felt most deeply was the hesitation of the leaders of Nanyang Company in investment matters.

“It’s really difficult!”

Although the air conditioning in the cabin was sufficient, Park Jung-woong felt a little hot and even irritable inside.

He has been in Nanyang for a week and has visited many companies in Nanyang, including some companies that have investments in South Korea. However, in response to his invitation, these companies only said they would consider it.

"These companies have no interest in investing in South Korea at all!" Park Jung-woong said with some annoyance:

"Last year, Nanyang's companies invested nearly 50 billion South Korean dollars in Malaya, Siam, Mindanao and Surabaya, while in South Korea it was only less than 2 million South Korean dollars. In comparison, Nanyang's investment in South Korea is really too little."

"President, maybe it's because it's too far!"

"Is distance a problem? Their investment in Jiuzhou exceeds 10 billion Nanyang. Jiuzhou is a very wealthy place! They don't need that much investment at all."

When Park Jung-woong mentioned Kyushu, his brows furrowed. During the Korean War, Kyushu received special orders worth billions of dollars, and its economy underwent earth-shaking changes. When Japan was still in post-war poverty, Kyushu had already taken the lead in getting rid of poverty. Now Kyushu is the region with the best economy and the highest income in East Asia.

"Maybe it's because... they are all compatriots!"

The ambassador's words left Park Jung-woong speechless. He knew what these countries were - they were all Tang people.

Entrepreneurs in Southeast Asia are more willing to invest in their own people. Among the countries and regions with the greatest influence in Southeast Asia, Siam receives the least investment.

"Alas... In the eyes of many people, those with money are compatriots, and those without money are foreigners. But for Nanyang, no matter rich or poor, they are all compatriots, and they are more willing to help their own people..."

With a long sigh, Park Jung-woong looked out the window. There were dense rainforests everywhere around them. Now they were entering the hinterland of Taiping. There were many large coal mines deep in the rainforest. Taiping was the energy industry center of Nanyang. It not only had oil fields but also coal mines. Almost all of Nanyang's coal was mined in the open air. The output of Taiping and Yongan accounted for more than 90% of Nanyang's total coal output.

With emotion, Park Jung-woong walked out of the cabin. The yacht was going upstream along the Taiping River. Most of the coal mines here are deep in the rainforest and near the river, so all transportation depends on water.

Because of this, they also need to go to the coal mine for inspection by boat. At this time, more than a dozen barges loaded with coal came into view in the distance.

"Mr. President, look, this is the push barge from Nanyang. They transport coal from the coal mine to the nearest power plant, and then convert it into electricity and transmit it to various places through the power grid..."

Jin Dekang pointed at the barge and introduced:
"The largest push barge in Nanyang can carry 12000 tons of coal! A barge like this with pushers can carry about tons of coal. In order to ensure the transportation of coal, Nanyang introduced push barge technology from the United States. Such barges are very common in Taiping and Yongan."

"There are 37 coal mines of varying sizes along the banks of the Taiping River and its tributaries. Last year, coal production exceeded 12 million tons. At the same time, there are 1000 power plants with an installed capacity of 720 million kilowatts and an annual power generation of more than 1.5 billion kilowatt-hours. It is the largest power base in Southeast Asia. Moreover, according to the regulations of the Ministry of Commerce and Industry, by 2000, Taiping's coal production will reach 1500 million tons, and the installed capacity of thermal power will reach million kilowatts, with an annual power generation of billion kilowatt-hours."

Listening to Kim Deok-kang's introduction, Park Jung-woong thought of the power plants he saw along the way. Those large power plants were built along the river. The towering chimneys and giant condensing towers looked extremely spectacular, and even more spectacular was the high-voltage transmission network.

"Last year, Nanyang's coal production exceeded 2 million tons. Sufficient coal provides sufficient electricity and guarantees Nanyang's industrial production. Mr. President, without electricity...it is impossible to develop industry."

The reason why Jin Dekang specifically mentioned electricity is that the installed capacity of power generation equipment in South Korea is only 20 kilowatts, which is not even as good as a large unit in Southeast Asia. The annual power generation is only a few billion kilowatt-hours, and most of the equipment was built during the Japanese colonial era.

"Perhaps this is the fundamental reason why Southeast Asian companies are reluctant to invest in South Korea. Without electricity, how can factories produce?"

Thinking of the power plants he saw along the way and the frequent power outages in Seoul, Park Jung-woong took a deep breath and said:
"Yes, that's the reason. Our power plant is backward, so let's build a modern power plant first!"

Now, Park Jung-woong finally understood why the people from Southeast Asia were reluctant to do so. The fundamental reason was... there was not enough electricity!

As for where the money comes from?
Of course it was borrowed from Nanyang!

One of the most important items in Southeast Asia's government development aid program is to provide infrastructure loans, and power generation is one of them. In addition, South Korea can also strive to persuade Southeast Asia's power companies to invest in South Korea.

Just as Park Jung-woong was thinking about how to build a modern power plant in South Korea to solve the factory's electricity problem, the passenger ship they were on finally stopped at a pier. Next to the pier, a group of mining company managers were already waiting for his arrival.

After getting off the boat, the group took a Warrior off-road vehicle to the mining area. Shortly after the car drove out of the dock, suddenly, a behemoth drove towards them from afar, making Park Jung-woong and his companions in the car stunned. They looked at the huge behemoth, which was as big as two or three floors, roaring past the car in an extremely oppressive manner.

Looking at the mine cart that was several stories high, Park Jung-woong asked with astonishment:

"This, this is..."

Sitting in the co-pilot seat, Chen Shuhai, the coal mine manager, introduced in an extremely proud tone:

"Mr. President, the XTR100 mining truck is the world's first 100-ton electric mining truck!"

Then, he emphasized:

“Made in Nanyang!”

As the words fell, one giant truck after another came into their sight. These giant mining trucks loaded with coal roared towards the dock. At this time, the ground was even shaking...

(End of this chapter)