Rise of the Argentine Empire
#94 - Saving the nation starts from the steel mills
"In every piece of steel lies hidden the secret of a nation's rise and fall."
This was Saint Hesser's opening remark at the La Plata steel mill establishment meeting, quoting the American steel magnate Andrew Carnegie.
He assembled a leadership team in La Plata City for the soon-to-be-established steel mill. The team members came from Thunder Mining, Rein Machinery Factory, Plari International, Cohen Brothers, and Maria Mold Factory. Most of them were key personnel who had emerged in the past six months. The team consisted of more than twenty people, including two intelligence backbones from the Falcon Intelligence Bureau, who came from Maria Town and Luo City in Bu City. The others from Oran City were led by Saint Hesser.
These people were carefully selected by Saint Hesser, possessing excellent professional qualities and clean backgrounds, with an average age of less than thirty years old. They were truly energetic young people and also half of Saint Hesser's accumulated wealth over the past year.
Regardless of success or failure this time, Saint Hesser would establish a steel mill sooner or later. If he successfully bought the rolling mill, it would save some effort. If not, he would spend more time.
Saint Hesser's heart was excited at this moment. Compared to light industry, cement, machinery, and mining, the importance of steel was self-evident, but the investment was also huge, and the 1950s was the best golden age for developing steel.
Steel technology began to spread globally. In the coming decades, East Asia would have three powerful steel industrial countries: New China, Japan, and South Korea.
Thunder Mining had already established an international investment department. The first target was Western Australia, which possessed all the important raw materials needed for the steel industry. Most importantly, Australia had not yet discovered iron ore, and it possessed the world's best iron ore.
The second target was Bolivia. Bolivia was currently in civil strife, which was also an option, but the investment was too high. Finding a location in advance was a proactive measure.
The third alternative target was Brazil, but Brazil was now very strict in controlling the outflow of mineral resources, which required a large amount of Reais.
"Today, the world's largest steel company is United States Steel Corporation, and the second largest steel company is Bethlehem Steel Corporation. However, the United States has imposed a blockade on us. Our goal for obtaining equipment is Western Europe."
"Now is the best era to develop steel. Last year, the world produced 189 million tons of steel. In the future, Argentina's steel industry must have a place in the world; otherwise, it cannot be considered a national rise at all. And I believe that at the latest, in 20 years, global steel production will exceed 500 million tons."
"500 million tons represents a huge opportunity. If we miss this decade, Argentina will become increasingly backward and will inevitably be completely suppressed by the Americans. South America will completely fall under the Monroe Doctrine."
"Today, Chile's fate will also be Argentina's tomorrow. Even if Chile introduces Soviet forces, it will not be enough to become a truly independent and autonomous country. This is also the result of insufficient strength."
Saint Hesser disclosed a lot of secret information about these core issues to arouse everyone's fighting spirit. Does the stable development of Chile's national political situation have anything to do with ordinary people?
The situation of the lower-level people in Chile, and even Chile's main industries, are controlled by the United States. It is already a country truly controlled by the United States. Argentina is indeed very close to this situation. Later, the speed of the Peron government's downfall exceeded the Americans' expectations. Peron, who was overthrown by the Argentines four years later, probably did not expect this day either. And the subsequent military governments all had American figures behind them.
"I believe that everyone present is unwilling to accept such a future. There will never be any savior in this world, nor will there be any God Jesus or the Virgin Mary. To build a stronger motherland, we must rely on our own hands…"
Saint Hesser sang the Internationale, with local adaptations. The atmosphere of the meeting was also driven by Saint Hesser. Yes, if possible, why be someone else's dog? Who doesn't want to be an upright person.
"Our blood will be boiling. The steel industry will forge the supreme glory of our Argentina. I hope we can work together to create Argentina's greatest steel mill in the future…"
Saint Hesser spoke with emotion, full of tears, and his voice was sorrowful, fully mobilizing the patriotic enthusiasm of these people.
This steel meeting lasted for a full three hours, and it completely united this team, strengthened their confidence in establishing a steel mill, and laid a certain foundation for the development of the steel mill.
"Our future goal is to create a 10 million-ton steel mill for our motherland. This will have at least 100,000 workers. As long as everyone works hard, I will provide you with all logistical support, maximum funding, equipment, and personnel support. Our first goal is to put into production at least 1 million tons of annual production capacity within three years."
This goal was relatively conservative and was also the funds that Saint Hesser could raise this year. The main reason was that the cement plant, urban construction, and the internationalization of Thunder Mining occupied a lot of funds. As long as he survived this year, he was very confident that he could raise more money.
The fertilizer plant under his command will be put into production next year, and other factories will also set up new branches, which will be enough to provide more funds.
It must be said that Plari International is doing very well. International transportation and international trade have already made the factories under its command start to make money. This is Argentina's first foreign exchange earning enterprise. The competitiveness of Argentina's original products was very poor, and Saint Hesser consciously developed new, more competitive, and more cost-effective products, which have now achieved rich results.
Beverage factories, breweries, clothing factories, and shoe factories are now the four major foreign exchange earning enterprises. In the future, there will also be food factories and canning factories. These are Argentina's rich raw materials, and Saint Hesser is also targeting this market.
The post-war period is the time when the world's population is growing the fastest. After countries began to develop peacefully, these materials were very scarce, and the massive population growth in many countries
made these materials quite tight. Even France still cannot meet the huge European market for food. Saint Hesser's light industry export money-making plan is proceeding exceptionally smoothly.
Exporting only beef and wheat is very cheap, and deep processing not only has higher profits but also earns a lot of foreign exchange. Saint Hesser already has a package of plans. Clothing, food, housing, and transportation, the latter two cannot be done, but the former two are very good to develop.
Like instant noodles, canned beef, canned pork, and all kinds of deep-processed products, as well as various categories of clothing,
men's and women's clothing, shoes, socks, pants, skirts, etc., have already entered the development plan. These products are very suitable for the capital city of Bu City, which has abundant human resources.
September 6th,
La Plata City High Court,
La Plata Rolling Mill Bankruptcy Auction,
The atmosphere at the scene was not very enthusiastic. Saint Hesser did not have many competitors: 1 Brazilian company, 4 Argentine companies, 1 British company, and Saint Hesser's Thunder Mining.
"Welcome everyone to participate in this auction. This time, the La Plata City Commercial Bank and the Argentine Industrial Bank jointly initiated it. The starting price is 15 million pesos, and each increase is not less than 100,000 pesos."
"This is Argentina's first truly privatized bankrupt state-owned company. This will be the first step in Argentina's auction history, and it will also provide some material for our country's economic reforms. After all, a steel mill is not a railway company. Railway companies are deadly."
In the second half of this year, the presidential palace's printing press was turned on, and the peso depreciated a lot. 15 million pesos is equivalent to more than 200,000 US dollars, but at the same time, you have to bear a part of the debt after the auction, so it is a bit uneconomical. Saint-Hesse's psychological expectation is that the transaction price will not be higher than 25 million pesos.
The attached area of the rolling mill exceeds 1,000 acres, which is very much needed by Saint-Hesse. The transportation of the rolling mill is also very convenient, which is very suitable for building a steel mill. The infrastructure conditions are also very good, so Saint-Hesse does not plan to miss it.
Nowadays, the appetite of the Argentine Railway Company's union is getting bigger and bigger, which has led to more disagreements between the presidential palace and the union. The various problems of Argentina's railway nationalization have made many Argentines very disappointed. Not only has the railway not been updated after nationalization, but even commercial transportation has become less and less.
"Cyde Company, 15.5 million pesos." An Argentine company made a bid.
"Water Company, 15.8 million pesos," a Brazilian company bid. It was also a girl, looking very charming and beautiful.
She wasn't too pretty, but she was exquisite and cute, with unique features that made people impressed at a glance.
Saint-Hesse couldn't help but take a few more glances, which made little Nora next to him pout. Only then did Saint-Hesse turn his eyes back.
"Nora, when it reaches about 18 million later, you raise the sign and bid 19 million. I'll take a nap first."
Saint-Hesse whispered something in Nora's ear, and then closed his eyes to rest. Even if he couldn't win the auction, he couldn't lose the swagger of being a local tyrant.
Saint-Hesse didn't plan to bid so quickly. Bidding too early would make him look less impressive.
When it slowly increased to 18 million pesos, Nora raised the sign in her hand.
"Thunder Company, 19 million pesos." Saint-Hesse directly added 1 million pesos, showing his confidence.
Some people in the audience looked sideways. This idiot must have too much money to spend. 1 million pesos could buy three houses in La Plata.
"Corun Company, 19.1 million pesos," the British company spoke.
"Thunder Company, 20 million pesos," Nora raised the sign again.
"Parker Company, 20.2 million pesos,"
"Corun Company, 20.5 million pesos," Only Thunder Mining and a company called Corun Company were left in the bidding. When the price was increased to 21 million, most of the others had already withdrawn. This rolling mill was at most worth about 35 million pesos, including 6 million in foreign debt and 8 million in unpaid wages. If it was too high above the bottom line, they would give up if it wasn't worth it.
Saint-Hesse looked around with interest. The person from Corun Company was a middle-aged man with a beard and dark circles under his eyes, and his mental state was not very good.
"Thunder Company, 22 million pesos." Saint-Hesse's plan was that if Corun bid again, he would give up and find another place to prepare for the steel mill.
"Thunder Company, once,"
"Thunder Company, twice,"
"Thunder Company, three times, sold."
When Saint-Hesse asked Nora to bid 22 million pesos, he had already planned to give up. After all, this was a rolling mill, not a steel mill, and it was not worth spending so much money. As for the land, it was not very valuable in Argentina. He could just do without it.
Looking at Corun Company, he realized that the middle-aged man seemed to be asleep...
"Damn, could this be a shill hired by the bank?"
Saint-Hesse thought, and was a little excited. This feeling of spending 20 million at once was really addictive. No wonder many people like to show off at auctions.
After signing all the procedures and clearing the foreign debt of the rolling mill, Saint-Hesse officially became the owner of this rolling mill.
......
September 8th,
Saint-Hesse came to this 1,000-acre rolling mill again.
This was his second time here. The previous rolling mill still had 400 workers who were staging a sit-in to demand wages. The rolling mill still owed a lot of wages, an average of 20,000 pesos per person, which was equivalent to two months' wages.
"Mr. Saint-Hesse, this is the rolling mill. This area nearby is all our land."
The boss of the rolling mill introduced the situation to him with a smile. The rolling mill went bankrupt, and he also stepped down.
"Our factory actually has very good mechanical equipment, which is well maintained. It's a pity that the operating rate is too low, so low that it can't be sustained. If the machines were running at full capacity for 4 months a year, our rolling mill wouldn't have gone bankrupt. There used to be at least 1,500 workers here, but that's all in the past now."
"Those who are willing to stay will not have very high wages in the next six months. I will make up the wages tomorrow. If you are willing to stay, you can rejoin us. The wages may be reduced in the next six months, but they will be paid on time every month, and some benefits will be provided."
"As long as we get through these six months, everyone will develop very well, I can guarantee it." Saint-Hesse did not force these people, and was even a little negative. Even dismantling a steel mill from Europe would take at least two years to build, and during this time, the rolling mill's capacity would still not be enough to start production.
Saint-Hesse saw the well-maintained rolling mill, hot rolling and cold rolling equipment, and was very satisfied. Although most of them are stopped now, these steels are necessary for the new town. Saint-Hesse even felt that the scale of this rolling mill was too small. Saint-Hesse felt that it should have at least several million tons to be enough.
This is also the inevitable trend of development. Saint-Hesse will not bother to import foreign steel in the future, which will increase the ambition of others and destroy his own prestige.
"Of course, there are still some stocks currently, which can be transported to the Potassium Triangle."
"Very good, as long as we continue to work hard, if you know some French and German, you can talk to me separately. We will form an international purchasing team to go to Europe to buy steel mills."
"Okay, boss,"
The people who followed behind to inspect were learning and analyzing carefully.
The international negotiation team, these people are definitely not good enough, but half of them must be sent out to see the world. This is very necessary.
Because from the very beginning, La Plata Steel Mill was a steel mill that relied on international raw materials, and the negotiation and procurement team must have an international perspective.
"We will definitely achieve our development goals. Today, our steel mill is established."
On the day he bought the rolling mill, La Plata Steel Mill was officially established. Saint-Hesse looked at the steel mill, which was still a grassland, and erected a huge sign. The first batch of employees of the steel mill filled the soil together and set off firecrackers.
La Plata Steel Mill was officially established on September 8, 1951!
Saint-Hesse believes that this day will be recorded in the history of Argentina's industrial development. This is also the real first step in the plan to save the country through industry.
The steel mill is ready to set sail!
The first task of the new team is to divide into two parts, one part to take over the rolling mill and stabilize it. This is a test for them.
Then another group of people will be separated, prepare well, and go to Europe and Germany with the professional purchasing and negotiation team to purchase the production equipment of the steel mill and prepare to start steelmaking.
Saint-Hesse seemed to see sintering workshops, coke ovens, and smelting equipment such as ironmaking, steelmaking, and rolling stock, cast pipes, coking, medium-sized materials, thin plates, medium-thick plates, and large-sized materials from the grassland. , strip steel.
The future has come, and the future is promising.
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