Rise of the Argentine Empire
#21 - Loans and plastic bottles
This loan application was made under the name of the newly registered Pralari Company, with the newly appointed General Manager, Cross, and Finance Manager, Bianqi Marino Rosa, formerly the factory director and accountant, respectively.
The banks in Cordoba that received policy loans this time were the National Bank of Argentina and the Industrial Bank of Argentina. The central government not only subsidized interest but also provided additional credit support, mainly handled by national banks for convenience.
Following the plan, Saint Herse drafted a production report, the factory's future production plan, and a series of plans and proposals for the use of loan funds.
At the same time, he contacted a small newspaper to test the waters, a newspaper that published the Cordoba Economic and Commercial News. They took photos, including some of white-bearded old men wearing protective suits and glasses,
going to the university biology lab at the University of Cordoba, holding test tubes, and so on, using advertising terms written by Saint Herse himself, exaggerating and boasting as much as possible. Unexpectedly, the effect was quite good, so Saint Herse didn't hold back.
He worked quickly and even created a special report introducing Pralari Food and Beverage Company.
He concocted a pseudo-professional thesis using methods from later generations, at least on the surface. It used a large amount of real and detailed data but drew some folk science conclusions.
Including some firmly believed basic terms from later generations, he boasted that this was a new technology that could win the Nobel Prize, a national-level beverage laboratory.
One small newspaper was not enough, so he found several newspapers with huge circulations and directly bought advertising space for reprints. The buzz in the city skyrocketed.
If it weren't for the small words "Advertising Section" in the lower right corner betraying his true colors, Saint Herse almost believed his own hype. It even spread outside of Cordoba.
For a time, everyone in the city knew that there was a "ancient" food and beverage company in the city, with "world-leading" biotechnology and "advanced technology." It implied that the Pralari factory had American technology, was developed domestically, and had noble lineage, crazily playing on the edge and stealing the spotlight.
Because it was not appropriate to take the handwritten draft, and there was no typewriter at home, Saint Herse went to Cross's house. Cross had a special typewriter at home with extra-large letters, said to be German-made.
He had him type up all the draft reports, spending two full days preparing a complete report. At the same time, he made several copies, which contained detailed information and professional plans.
After this professional report was drafted, it was given to the two subordinates to review. Cross carefully looked through it and prepared his speech. This time, Saint Herse was not going to come forward himself, partly because of his Gaucho identity and partly because Saint Herse was a warrant officer. The three also held a meeting.
In the small conference room, on the left was the smartly dressed Hasun Rosa, the relative introduced by Hahn last time, with thick auburn hair, emerald green eyes, thin lips, and a straight, beautiful nose, around thirty years old.
She looked mature, stable, and full of charm. She graduated from the Department of Economics at the National University of Cordoba. After graduating, she worked as an accountant for two years and then married a wealthy boyfriend. After marriage, she had two children in a row, but the scumbag found a mistress and they divorced.
After the divorce, she received a large sum of savings and a house. Without a continuous economic income, she came out to find a job again.
However, due to experience, work history, and other reasons, Rosa was unable to go to any good company.
It just so happened that Saint Herse's cannery was short of a finance person, and the cannery was relatively remote, plus the finance position was a bit demanding. Rosa was just right and met the requirements, so she was hired.
The work arranged by Saint Herse was also relatively flexible. Rosa's two children, one went to kindergarten, and the other was taken care of by a servant at home.
Cross and Rosa were carefully looking through the materials drafted by Saint Herse, taking notes from time to time, very focused.
Quietly waiting, Saint Herse also looked through it, checking to see if there were any errors or omissions, and whether it needed to be modified.
The fifth part of the future plan includes purchasing production equipment to produce canned meat. This is easy to understand. The country exports beef but rarely produces canned beef,
but imports foreign canned goods. The purpose of the Five-Year Plan's import substitution plan is to replace imported goods with domestically produced products, with a goal of raising 100 billion pesos in five years, equivalent to 2 billion US dollars in capital investment, which is quite considerable.
The most important thing is to expand the production line of the Soda Factory No. 2 to produce fruit-flavored soda, transparent carbonated drinks, iced tea, fruit-flavored beer, milk tea drinks, coffee drinks, etc.
These are all relatively well-known beverage varieties when Saint Herse was in a later generation with abundant resources. This aspect will occupy at least 30% of the funds, approximately at least 80 million pesos, or about 1.6 million US dollars.
This aspect involves funds and cooperation that will not only be with banks but also with the newly established Argentine National Oil Company.
The equipment for the chemical factory can be produced by the Argentine Oil Company, which is good news.
The initial funds involved will reach over 90 million pesos, equivalent to 4.5 million US dollars, which is also the most difficult part.
"Boss, the first and second are okay, but is the third loan goal really necessary? Producing plastic bottles ourselves, can this not be used for drinking?" Rosa raised her hand to ask, looking at Saint Herse seriously.
"It is very necessary. Currently, the domestic oil company is recruiting partners. I have a plastic bottle production technology formula in my hand,"
"Although glass bottles are good, they are not convenient to carry, and the cost is actually quite high. After the mass production of plastic bottles, the cost will be much lower than the cost of glass bottles."
"Actually, if possible, we can also have an aluminum ingot smelting plant next to the New La Plata Hydropower Station in the future to produce easy-open cans, that's amazing."
"Boss, what is an easy-open can?"
"It is a thinner aluminum can that can hold soda. This is a German technology..." Saint Herse said vaguely. Oh, easy-open cans have not been invented yet.
“The current tin cans are produced by the Belleville Steel Plant. I wonder if that factory can even produce 100,000 tons of steel a year. They also have to go to the Cologne Forging Plant to make the can boxes, which is quite costly,”
Speaking of this, besides feeling powerless, Saint Hesser also had a greater desire for a complete national industrial system.
A great country should at least have an aluminum company with an annual output of 5 million tons and a steel conglomerate with an annual output of 20 million tons to develop powerful shipyards and automobile factories.
Relying solely on selling oil can only bring temporary wealth, and it's a wealth with a huge gap between rich and poor, like Venezuela in later generations, a mere shell built on oil.
This is due to the short-sightedness of the rulers and the resource curse. A good example is the small country of the United Arab Emirates, Dubai, which relied on the first pot of gold from oil to develop international trade and technology, and can continue to develop even after Dubai's oil runs out, of course, inseparable from the financial backing of the Khalifa Emirate.
Today, Argentina's national oil company occupies the entire domestic market, but it relies on exporting crude oil to the UK in exchange for pounds, which is a huge waste!
Saint Hesser's intention to independently produce plastic bottles is also to covet this cake of the chemical industry. The profits from exporting crude oil are taken by others, while the petrochemical industry can produce many chemical products, such as plastic products, organic chemicals, inorganic chemicals, rubber, and fibers, which can drive a large number of industries. This is a long-term plan.
“In the future, we need to do supporting facilities. It is not enough to purchase and import from outside. We must produce ourselves.”
“It's not a good feeling to be strangled by others. Although we are just a small factory now, our future is to sell our products all over the world. Therefore, reducing production costs is very necessary. It is very necessary to take out a loan to build a petrochemical plant and then set up a plastic bottle factory.”
“You should know that during World War II, Germany had more than two hundred Coca-Cola processing plants.”
“Selling 30 million bottles of soda in a few years, even if saving one cent of cost per bottle, will result in an additional 3 million in profit. It is very necessary to promote and implement this,” Saint Hesser took a sip of water and continued.
Of course, Saint Hesser is not only for the food and beverage company but also to cut into a new industry through this, an industry with broad development prospects, such as the coal chemical industry, the fertilizer industry, and so on.
The first pot of gold has been accumulated. The next step is to continue to make things happen. Chemical plants must be built, steel plants must be built, and even aluminum plants must be built in the future.
The two also continued to ask questions, and Saint Hesser answered them one by one, and made a deeper explanation and narration.
......
The two also made an appointment with the bank. In total, two banks, Cordoba Commercial Bank, provided a low-interest loan of 30 million pesos. This is also because Saint Hesser set up the settlement and public account in this bank.
This fund is mainly used for the expansion of the soda factory. As for the plan for the meat and food canning factory, it was rejected on the grounds that there is already a company in the city that has borrowed 40 million for meat canning production, and the city government does not want vicious competition.
Argentina National Bank is financially strong and provided a loan of 60 million pesos in total. It also rejected the meat canning production plan on the grounds that the profit is low, it is difficult to recover the cost, there is a risk of bad debts, which may lead to company difficulties.
The bank president is very interested in the plastic bottle factory and has invited professionals to assess the feasibility of the plastic factory, and pulled in the Ayuo office stationed here. Finally, it was determined that the plan is very feasible.
At the same time, this loan also alarmed the municipal government. This professional report was submitted to the mayor's office, which was greatly appreciated by the mayor, and was directly listed as a key development project when approved by the municipal government.
However, there is a prerequisite for the loan. If the new chemical plastic factory cannot repay the loan by then, it will be fully recovered and auctioned. This is also a prerequisite. The municipal government will provide land for the construction of new factory buildings, equipment channels, approval convenience, and so on.
Although Saint Hesser is very unhappy about the municipal government taking advantage of the fire, but who told him that he has no money now, he can only accept it, and with the endorsement of the municipal government, the development of the plastic bottle factory should be much faster.
Saint Hesser's information and planning are currently the most professional for the bank president, and the current monthly sales return of the canning factory has been close to three million pesos, which is also the reason why the National Bank carefully reviews the loan. As for the most important reason,
That is, Saint Hesser pulled Klein's family to invest and endorse, as well as the bank's flow and the care of some people in the city. After all, Cordoba is still a society of human relations. Since the Plari canning factory sells enough, the data is also the most real, and there are people taking care of it, the risk of bad debts is also the lowest, so why not agree to the loan.
Of course, the two finally had a hard negotiation with the National Bank, bargaining, haggling, and eventually using one to ten, and even alarmed the city hall, and finally finalized a total of 90 million pesos in loans from the two banks, about 1.6 million US dollars, accounting for 4.5% of the 2 billion low-interest loan funds in Cordoba this time, a quite amazing proportion.
Saint Hesser's plastic bottle factory will be located in a town outside the city, where railway transportation is also more convenient, and it will not cause pollution in the city. Saint Hesser is also preparing to establish a plastic factory to provide raw materials for the subsequent specialized production of beverage bottles.
Cordoba has indeed gained a new development period through this funding support.
The annualized interest rate of this batch of loans issued by the Argentine central government is not high. President Peron personally signed the bill, involving 23 provinces and one capital city in the country. If it is a local enterprise of a certain scale, it will be very advantageous.
Saint Hesser is one of the first to eat crabs. Of course, Saint Hesser also used some small tricks. The stimulus effect of this batch of loans is also quite significant.
Of course, it can only be used for special procurement of equipment to expand production funds, and can only be used for a petrochemical equipment company, for import substitution of domestic enterprises, and cannot be used for any other purpose.
When these two loans were finally signed, Saint Hesser finally breathed a sigh of relief. This will be a thrilling leap. Success will accelerate development, and failure will be utterly crushed.
The next step is to find someone to cooperate with the laboratory to test the food-grade plastic bottle process. With Saint Hesser's experience, it will be very simple.
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