The rise of a great power: starting with military industry

Chapter 653 Where there are people, there are rivers and lakes

Liu Tao sighed inwardly.

Where there are people, there are rivers and lakes, and where there are rivers and lakes, there are bound to be disputes.

As the great man said: There is no party outside the party, only imperial thinking; there is no faction within the party, only all kinds of weirdness!
From the very beginning, he was labeled as a 'reformist'.

And because his grandfather and his father were both in the weapons industry system, and he started from the Panshan Machinery Factory, he was also labeled as "military industry system".

The Panshan Group's armed forces department is of astonishing scale and controls a considerable military force. Liu Tao has always been very supportive of national defense construction and has good relations with the Army, Navy, and Air Force, so he is also labeled as a "soldier."

He has a firm and tough stance. In ten years, he has turned the surrounding areas upside down and brought about tremendous changes in the situation. His influence has even extended to Southeast Asia, South Asia, the Middle East and Africa. Therefore, some people call him a "hawk"!
Panshan Group is so large, with extremely astonishing turnover and profits and a wide range of business operations. It is normal for some people to be jealous and envious.

He wasn't surprised at all.

At the beginning, there were many objections within Panshan Group regarding cooperating with the central government and agreeing to pay taxes. After all, which military-industrial enterprise should pay taxes? It was good enough for a military-industrial enterprise not to ask the government for money, but it also had to pay taxes! ?

Because Panshan Group broke the rules by paying taxes, other military factories were very dissatisfied.

The military sector pays 10% tax and the civilian sector 15%. These proportions seemed small at first, but now they are huge sums.

That’s not 10% or 15% of the profit, but 10% or 15% of the turnover!

It’s not that Panshan Group can’t come up with 300 billion RMB. It can do it if it grits its teeth.

1989 was a bumper year for Panshan Group.

The funds withdrawn from Japan, the stocks, buildings, etc. sold off, exceeded 450 billion US dollars. According to the settlement between Panshan Group and the bank, that was billion yuan.

The profits that several major banks in Hong Kong paid to their parent companies amounted to 1000 billion yuan.

There are also those who act as oil middlemen and make profits of up to 1000 billion yuan.

Combined with the profits generated by other groups, Panshan Group's overall profit reached an extremely terrifying figure in 1989.

Even after deducting the taxes to be settled and Panshan Group’s own investment, the total amount is almost 2000 billion yuan.

But before that, Liu Tao had other plans. The money would be used to invest in other areas rather than in infrastructure.

But since the leader had said so, he couldn't say anything else.

"Okay, we at Panshan Group will pay for the 300 billion RMB!" Liu Tao gritted his teeth and said, "But if we pay for the 300 billion RMB, our Panshan Group will have to live a hard life this year."

Upon hearing this, the leader was at a loss whether to laugh or cry and said, "If this is considered a hard life for Panshan Group, then what about our life? Your salary and benefits are almost catching up with those of foreign companies."

After hearing this, Liu Tao immediately looked embarrassed.

Without staying long so as not to disturb his leader's rest, Liu Tao said goodbye and left.

In the afternoon, all the leaders and guests left.

Liu Tao returned to Panshan Group, and after finishing his official business, he went to the Southwest Aircraft Research Institute.

Southwest Aircraft Research Institute is not far from Panshan Group’s headquarters building.

The Panshan Group headquarters was already overcrowded with people, and even the secondary group headquarters building that was later established was built outside. Therefore, the Southwest Aircraft Research Institute was not located at the Panshan Group headquarters.

Ma Fengshan served as the director of the Southwest Aircraft Research Institute. He recruited people and gathered the entire Y-10 design team, and also brought many more people with him, and also brought many new people.

Training new talents is also one of the responsibilities of the Southwest Aircraft Research Institute. There are currently 20 students studying for both master's and doctoral degrees here, including more than a dozen undergraduate graduates, ten master's degree graduates, and a dozen who have just obtained doctoral degrees.

When Liu Tao met Ma Fengshan again, Ma Fengshan looked much better than the first time they met.

But Liu Tao knew that Ma Fengshan's illness was very troublesome and probably could not be cured, so he could only live as many years as possible.

Even with the medical level of Panshan Hospital, Ma Fengshan's illness could not be cured. Ma Fengshan was asked to go abroad for treatment, but he was unwilling to do so. He just wanted to develop the Y-10 successfully, even if it meant his death.

The medical team is now using traditional Chinese medicine to treat Ma Fengshan.

Ma Fengshan saw Liu Tao and said with joy: "General Manager, I have read relevant information recently. I am full of confidence in our Y-10. I think we still have a very large competitive advantage. Our costs are relatively low. As long as we can support the production line and the technical team, no profit is a problem."

Military-industrial units are not ordinary private companies and cannot survive without profits.

As long as you can support the technical team and the entire production line, that’s profit!

Panshan Group is a large group, and Southwest Aerospace Corporation is a military-industrial unit, which do not attach too much importance to profits.

After all, the production line of a military industrial unit is not about making money, but about maintaining productivity. During wartime, the production line can directly manufacture the aircraft needed by the troops in large quantities.

"I have an idea. Let Xi'an Aircraft Corporation make a prototype. We just need to pay them the cost plus some profit. I think Xi'an Aircraft Corporation will be very willing to do so." Ma Fengshan's face was flushed. "With the prototype, we can conduct tests, find out the deficiencies, and solve the problems. When the 011 aviation base is completed, we can build passenger aircraft and produce more prototypes."

Now the Shanghai Aircraft Factory is busy cooperating with McDonnell Douglas and will definitely not produce the Y-10.

Then Xifei is a good choice.

Xi'an Aircraft Industry Corporation is the only aircraft manufacturing company in China that produces military transport aircraft and is also the production line for military transport aircraft.

Now the Y-8 has almost no military transport aircraft production orders, so it has to introduce airtight cabin and air-conditioning technology from abroad to transform the Y-8 into a regional airliner in order to obtain market orders and support the entire production and R&D teams.

It just so happens that Panshan Group and Xi'an Aircraft Industry Corporation have a cooperative relationship. In recent years, Xiangjiang Airlines has placed orders from Xi'an Aircraft Industry Corporation to purchase logistics transport aircraft. The two parties have a good relationship.

Liu Tao paused for a moment and asked, "How did you solve the problem with the Y-10 prototype?"

Previously, two prototypes of the Y-10 were produced. Last year, Liu Tao got these two prototypes, but a lot of information about the original Y-10 had been lost.

McDonnell Douglas was responsible for this.

There were actually problems with the two Y-10 prototypes, because many of them did not meet the standards when they were produced.

"They have all been solved. The biggest problem is high-strength steel, aluminum alloy plates, profiles, large forgings, landing gear and avionics systems." Ma Fengshan said confidently: "We believe that the prototype produced this time will be much better than before!"

After arriving at Panshan Group, Ma Fengshan was extremely excited.

Because here, there is sufficient funding and there is no need to worry about lack of funds.

With a good office environment, their housing problems have been solved and their living conditions are much better than before.

More importantly, Liu Tao supports the Y-10 project!
(End of this chapter)