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Chapter two hundred and fortieth, the end of the cottage era

Without becoming the fuse of the world war, Sarajevo is just an ancient city surrounded by mountains and beautiful scenery.

Among the many Austrian cities, it is inconspicuous at all. Especially after the failure to compete for the Bosnia-Herzegovina, it is even more inconspicuous.

This has to be discussed with the Vienna government's policies. In order to avoid excessive concentration of resources and unnecessary waste, administrative centers, economic centers and industrial centers are usually not crowded.

Sarajevo is a land transportation hub in Bosnia and Herzegovina, with good industrial development and a historical city. These advantages have become his disadvantages in competing for provincial capitals.

Although its popularity is low, Sarajevo's economic development is not satisfied at all. Especially after Bosnia and Herzegovina became another heavy industrial center in Austria, the local economy soared.

With its geographical advantage, Sarajevo can also rank in the top 20 among many Austrian cities.

In an office building on Urho Avenue in Sarajevo, the headquarters of Fick Group, a giant in the hardware and accessories field, is here. At this moment, Executive President Yanor is giving a work report to the boss.

"Mr. Slove, our proposal to establish a comprehensive food processing plant failed to pass the review. The government gave the reason that the market was saturated and that Sarajevo was not suitable for the development of the food processing industry, and suggested that we change the investment direction."

Fick-Slove frowned. In addition to arms, the best supplies sold during the war were food, especially food that could be eaten by tearing open the packaging bag.

Compared with the high-end arms trade, food is easier to buy. The profit of food may not be as good as arms, but the sales volume is large!

Austria is a neutral country and can export materials to both Pratt and Russia at the same time. The total strength of the warring sides has long exceeded two million, and the number of civilians recruited is twice that of this number.

It is impossible for so many people to make fires and cook every day. Many times, in order to get in time, they can only use homemade dry food.

No one can stand eating dry food every day. This requires a lot of convenience foods that have "better taste" and "richer nutrition", such as: biscuits, canned food, fries, wine...

Slov calculated that the PAS and Russia consume more than 2,000 tons of fast food every day, with a total value of more than 280,000 Syrians.

Based on the war lasts for one year, this is a market of more than 100 million Aegis. This is just the most conservative. Slove believes that this war will take at least two or three years to decide the outcome, and this is a market of 200 to 300 million.

The profits of trading during the war are high and there is no need to be much. As long as he can get one percent of the market share, he needs to recover his investment and make a big profit.

After pondering for a while, Slove said slowly: "Send someone to check who is targeting us. In addition, arrange the time as soon as possible, and I want to invite Director Danilo to dinner."

Slov didn't see the overcapacity. What he saw was that both Prat and Russia were waving checks to buy, where did the overcapacity come from? It was obvious that supply was in short supply!

Yanor explained nervously: "Mr. Slove, it shouldn't be anyone targeting us this time.

After the plan was rejected, I sent someone to check it out. Not only us, but also the projects investing in food processing have not been approved recently.

It may be related to the risk warning issued by the Vienna government not long ago. Recently, capital investment in the food processing field has soared, and the original food processing companies are also working hard to expand production capacity.

It takes a certain amount of time from investment to production. The market has not reacted in the short term. It is too late for us to enter the market now."

Yanor opposes entering the food processing industry. Even if there is no concept of food safety these days, investing in the food processing industry in the heavy industry center is not a reliable business.

It would be fine if the company is small, but once it reaches a scale, raw materials are a headache.

Slove is naturally not a fool to survive in this era of the strong and prey on the weak, so he has long considered these risks.

Huge profits are always with risks, and there are naturally businesses that make sure to make money but not lose money. However, the great nobles have long divided up all such businesses, and it is not his turn to do it.

Even if the overcapacity crisis is about to break out, it will only be after the war. During the war, both Prat and Russia will try their best to sweep goods.

This is a reality, and they have no choice but to not buy it. If anyone does not buy it, the materials will fall into the hands of the enemy. If they do not buy enough materials, what should the front-line troops do?

It would rather buy more supplies and leave them in the warehouse than insufficient supplies, resulting in the failure of the war.

The post-war crisis depends on who runs faster. Anyway, I am a cross-river and I will leave after taking a fuck. It is not the main business, and Slove does not pay attention to the good or bad industry.

Slove doesn't care, but he can't stand the Austrian government's care. He can't pass the review. As long as the legal provisions are compliant, he can also invest in and build a factory, but the government's support is gone.

"If we don't have government support, how much will the cost of investing in a factory be increased?" Slove asked.

After pondering for a while, Yanor slowly replied: "According to relevant government regulations, the food processing industry is a key supporting industry, mainly including: the government provides free land for factory construction, and tax revenue in the first three years has been reduced by half.

According to our plan, it takes about 158 ​​acres of land to build factories and warehouses, and at the current land price of Sarajevo, it costs about 126,000 SHIELD.

Tax reductions and exemptions involve a wide range of aspects, and it is difficult to determine specific numbers. However, the tax rate of the food processing industry is relatively low, roughly equivalent to about 3.5% of the turnover."

After hesitating for a while, Slove sighed helplessly: "Forget it, the plan is cancelled. Use funds to expand our hardware accessories production capacity, and it should be faster."

There is no way, if you can't get the free land use rights, the land cost alone accounts for one-third of the total investment; without tax incentives, the profit will drop significantly, and the risks and returns are no longer proportional.

This is still industrial land, with relatively low prices. If it is commercial land and residential land, the land price will increase significantly.

The Vienna government did not vigorously develop real estate, but with the continuous advancement of urbanization, land prices continued to rise.

This is not something the government can control. Apart from state-owned land, Austria has the most private land. These lands follow the principle of free transactions and the price cannot be controlled at all.

The land prices in Sarajevo are quite mild. There are still tens of thousands of acres of land in the center of Vienna. Apart from the development of high-end residential and commercial real estate, other industries cannot afford it.

This is the result of multipolar development and Vienna's small population, otherwise land prices would be even more crazier.

...

Unable to intervene in the most profitable industries, Slove can only choose to settle for the second best and expand the original industries. In the face of the crazy market, all industries are making great profits now.

After hesitating for a while, Yanor suggested: "Mr. Slove, it's better for us to add some auxiliary business. For example: processing canned boxes.

Now the canned industry is developing rapidly, and the demand for boxes is also growing rapidly. With our technology, there is no problem in producing canned boxes."

These days, most of the canned foods are made of iron boxes, and glass canned foods are luxury goods.

It’s not that glass production technology is not good, but mainly because glass jars are relatively expensive and difficult to transport, which makes them prone to damage.

The cost has increased, the price has increased, and the market competitiveness has been lost.

Not to mention the war era, we must use canned iron boxes with good quality and low price! Food safety has never been a problem, and the big guys don’t eat it anyway.

Processing canned boxes is just a small business, but no matter how small the mosquitoes are, they are meat. As a qualified capitalist, Slove never thought he had too much money.

"Very good, Yanor. Your proposal is great, just open your mind.

Now that the market competition is so fierce, we must expand new businesses as much as possible and increase corporate profits in order to survive in future market competition.

We can also produce these small items, not only canned boxes, wine bottles, kettles, we can also produce them, you can arrange them!"

Since Austria joined the free trade system, market impacts have occurred every day, and "crisis awareness" has become increasingly popular.

If it weren't for the timely arrival of the Prussian-Russian War, a competition in the industrial market that affected the European continent would probably have erupted.

Smart people know that war only delays this process, and what should come will come, which cannot be stopped by individuals.

Either take advantage of this opportunity to soar into the sky or sink into the competition.

While the Prussian-Russian War delayed the outbreak of the crisis, it also intensified the crisis. Austrian newspapers propaganda every day, so naturally capitalists will not be unresponsive.

Some people choose to develop diversifiedly, expand new businesses, and share risks; some people choose to work hard to improve the competitiveness of enterprises in the industry.

Slove himself was also a diverse admirer and wanted to take advantage of the opportunities of the Plain-Russian War to expand his business to the food processing industry.

Don’t look at the fierce competition in the food plus field, but this is Austria’s ace industry, and all competitors in Europe are younger brothers in this field.

Under the free trade system, the Austrian food processing industry, which has an advantageous position, has a stronger risk resistance than other industries.

However, reality brought Slov back. There was no way that Sarajevo was an inland city after all, and the news was relatively closed, so Slov's reaction was not fast enough.

Unable to expand into the food processing industry, he had to choose to deepen his investment in hardware accessories and expand related businesses with this as the core.

As for Austria's more competitive electric power and internal combustion engine field, it is not that Slove has no idea, but it is completely unattainable.

These fields that rely on technology to make a living are not something that ordinary people can easily participate in.

The era of playing copycats has passed, and Austria has long entered the patent era. Without its own core technology, it cannot gain a foothold.
Chapter completed!
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