Rebirth of the World’s Richest Man

Chapter 3032 The logic of heavy industry development

After three rounds of wine and five dishes, Jiang Xiaobai put down his wine glass, looked at Director Lu and Liu Yonghao, and asked about their purpose.

Today is the year-end summary meeting of Huaqing Holding Group. The people here are all people from Huaqing Holding Group, and they are people from Huaqing Holding Group’s wholly-owned subsidiaries.

It's not the person in charge of the company who has a shareholding in the company. Director Lu and Liu Yonghao came here because they had other things to do.

 It was also because Jiang Xiaobai didn’t have time before, so he pushed it to now.

“Dr. Jiang, I wonder if you have paid attention to the domestic heavy industry market this year.” Liu Yonghao said directly.

Jiang Xiaobai sighed inwardly when he heard it. He guessed that it was most likely about heavy industry.

 The companies in Dongfanghui are not in the heavy industry, but none of them are industry leaders.

 No other, this heavy industry is the exclusive domain of state-owned enterprises. Even if private enterprises enter this industry, they will only get scraps after working hard for many years.

However, at this year's Oriental Meeting, Factory Director Lu, the Liu brothers and others uncharacteristically wanted to discuss heavy industry matters. Jiang Xiaobai felt that there might be something going on here.

Perhaps Director Lu and the Liu brothers are interested in the heavy industry and want to get involved.

 So when discussing heavy industry, Jiang Xiaobai didn't say anything and never expressed his position directly. He originally thought that this would dispel some of the two people's thoughts, but they didn't expect that the two people actually chased them to Jianhua Village.

"It has been noted that the development of light industry will inevitably increase the cost of electricity, and the development of the real estate industry will also drive the development of key industries such as steel and cement that consume coal. In the past two years, the demand for chemical fertilizers in domestic agriculture has The volume is also constantly increasing.

 This further increases coal consumption, and coal consumption…”

 Jiang Xiaobai was certainly not ignorant of these situations. On the contrary, he analyzed them thoroughly.

The reason why Director Lu and the Liu brothers are interested in heavy industry is because heavy industry has developed very well in the past two years.

Jiang Xiaobai clearly understands why heavy industry is developing well. The domestic economy has developed rapidly in the past two years, and the demand for various raw materials has increased.

 In this case, it will further lead to electricity shortage, which in turn will further increase the price of raw materials.

 The increase in raw material prices will lead to the development of heavy industry.

 Simply speaking, it is such a set of logic, among which steel, fertilizer, and cement are all key coal-consuming industries.

How should I call coal? In the eyes of many people who don’t know the inside story, coal has only two functions, one is heating and the other is generating electricity.

 In fact, this is not the case. The raw materials for fertilizers, for example, are also coal.

 Making fertilizers will also increase the consumption of coal, as well as other chemical uses, so coal has always been very important.

Of course, the biggest use of coal is to generate electricity, but the contradiction between the coal industry and the power industry is huge. These are two monopolistic industries that have been at odds for many years. Coal and electricity use a planned allocation supply method. At the beginning of each year, the relevant departments will organize the coal, railway and electric power departments to hold a coal ordering meeting, sign a one-year thermal coal purchase and sales contract, and then implement it as planned.

 But the power industry has always been aloof. Many people in this era have heard of the title "Electric Tiger". The annual purchase price is lower than the market price. As time goes by, coal companies no longer dare to do so. They quarrel every year, and coal companies sell their coal to private companies and some unplanned companies.

 But Electric Tiger is not a vegetarian either. This increases the purchase price, and doesn’t the benefit decrease? Therefore, we would rather ask for less coal than raise prices.

 This results in insufficient electricity.

And if there is not enough electricity, the major electricity consumers will be unable to produce raw materials. Raw materials will become scarce and expensive, and then the price will further increase.

This is just such a simple logic.

This then led to the development of heavy industry. Private enterprises saw that the price of raw materials had increased and it was too easy to make money here, so they naturally wanted to get involved.

Jiang Xiaobai spoke eloquently and made the logical relationship here very clear. For a moment, Director Lu and Liu Yonghao looked at Jiang Xiaobai and didn't know what to say.

He pondered for a long time before asking: "Director Jiang, since you understand this, then you ask whether our private enterprises can enter the heavy industry and get involved. This makes no sense. The raw materials produced by state-owned enterprises are in short supply.

 It has delayed the development of various industries, and our private enterprises can't supplement it, right? "

Factory Director Lu also nodded and said: "Yes, Director Jiang, the electric power industry and the coal industry are very rigid. The investment and construction of the store industry has gradually declined in the past two years.

Putting aside the contradiction between the coal industry and the power industry, it is simply irreconcilable. Even if it is reconciled, it will not be a matter of time for the power industry to restore sufficient power supply. After all, the investment and construction in the past two years have been reduced. .

 If you want to recover, you also need a cycle. I estimate that this cycle will take as short as three years and as long as five years. This is a very good opportunity for us to enter this industry..."

 Liu Yonghao and Director Lu are very thorough in their analysis. Let's put it this way, with such a large business, their sense of smell is still very sensitive and they can predict many things.

 Because for most things, the internal logic is very clear.

 From the development of the real estate industry to the development of heavy industry, they all have their own internal logic. As long as the ideas are clear, there will be no problem.

 Jiang Xiaobai smiled bitterly. What the two of them thought was too simple. It was not only the logic of the market economy that had to be clarified, but also policy issues.

“No, you two, one makes cars and the other makes feed, aren’t you doing well? Why are you so obsessed with entering the heavy industry? What I mean is that when doing business, you should do something you are familiar with.

It is not a good thing to plunge into this unfamiliar industry, especially this heavy industry, where the water is also very deep.

And this is not only a market issue, but also whether private enterprises can be allowed to enter..."

Jiang Xiaobai looked at the two people talking earnestly, and still wanted to try his best to persuade the two of them not to have their own way.

 (End of this chapter)