Chapter 1: Compressing 40 million

In early autumn of 1980, Nanjiang Provincial Department of Metallurgy.

In the large conference room, four floor-standing electric fans were driving at full speed to send the cool breeze, but they could not dispel the stuffy heat and the strong smoke in the room. Twenty or thirty participants from the old, middle-aged and young generations sat around the conference table, verbally talking, and even their eyes were filled with a fierce murderous aura.

"The spirit of the central government is very clear. The investment of 40 million US dollars must be reduced, which is not worth the price. The Pujiang Steel Plant project is more than ten times more important than you. It has been completely discontinued. It is already very good that your Nangang project can be retained, but the budget must be greatly reduced, otherwise the Economic Commission will not be able to invest!"

The speaker is Hao Yawei, director of the Budget Department of the Metallurgical Bureau of the State Economic Commission. This is a "young and strong" official in his 30s. He is known as the "cold-faced King of Hell" in the industry.

"Director Hao, we are not talking about price, we are talking about science. The Nangang 1780mm hot rolling mill project is not to serve our Nanjiang Province, but to provide hot rolled sheets for the entire national economy. The budget of the project has also been approved by your budget department. Now we are about to sign a contract with the Japanese side. You suddenly asked to cut the budget and ask us to cut it for you? If you want to cut it, then cut off my salary first, and I will take my wife and children to your house for dinner!"

Zheng Chuankai, director of Nanjiang Iron and Steel Plant, refuted Hao Yawei's request without any weakness. He is in his 50s this year and has been the director of Nangang for more than 10 years. He is also a veteran in the entire national metallurgical industry and dares to fight against officials from the capital with real guns.

Hao Yawei said coldly: "Why should I care about your wife and children's meals? Don't think that you, Nangang, have a small canteen that exceeds the standard. It's not your turn to Director Zheng's family to have no meals."

Zheng Chuankai was choked all of a sudden. The information revealed by Hao Yawei was really a weakness of Zheng Chuankai. At least it could make him unable to find any words to deal with it.

Perhaps since the founding of the People's Republic of China, the country has been constantly requiring enterprises not to build "houses and halls". Similar notices are more frequent than the menstrual cycles of lesbians. However, enterprises do not take this kind of requirement at all. No rich company will not build facilities such as small canteens, clubs, guesthouses and other facilities in private.

This kind of facility is not built because the leaders in the enterprise are so greedy for enjoyment. It is because everyone is doing this. If your factory doesn’t have it, you will lose the problem. Besides, if your superiors come to your factory to inspect work, how can you let your leaders eat and drink well without a small canteen? How can you let your leaders have fun without a club?

Nangang is one of the top large enterprises in Nanjiang Province. Officials from central ministries and commissions often come to Nangang to visit, so these hospitality facilities in Nangang are built more upscale than other enterprises. Such things are not a big deal in normal times, but when discussing budgets, they can become a handle. If you have money to build a luxurious small canteen, can't you reduce the budget for the new project a little? You said till you can't suppress the 40 million US dollars. Who knows if you want to use the money to build another entertainment facility?

Liu Huimin, deputy director of the Nanjiang Metallurgy Department, came out to rescue Zheng Chuankai. He is also an old cadre and is about to retire. At this age, his temper will not be so irritable. He coughed gently, attracted everyone's attention to him, and then said to Hao Yawei with a kind look:

"Xiao Hao, one code is converted into one code. The construction of Nangang canteen was actually a few years ago, and it has nothing to do with the investment in the 1780 hot rolling mill this time. Lao Zheng's words just now were a singular sentence, and no matter what, he would not not be paid. I understand, Lao Zheng means that the budget for introducing complete sets of equipment for hot rolling mills has been set a long time ago and has a basis. We have been negotiating with the Sanli Steel Institute of RB for nearly half a year. The quotation for the complete set of equipment they proposed to provide us was US$380 million, which is the result of our repeated price reduction. We work hard to reduce another one or two million US dollars, and it may be possible. But it is completely impossible to reduce 40 million at once."

"Unless we lower the equipment standards and choose another 1500mm rolling mill from Sanli Steel Institute, let alone compressing 40 million, we can also do it by 100 million, but can the State Economic Commission agree?" Zheng Chuankai interrupted.

Hao Yawei said: "This is impossible. 1780 is a specification selected by the Metallurgical Bureau after repeated consideration. If it is replaced by 1500, it will be lagging behind before the equipment is put into production. Such introduction is unnecessary for us."

"That's it. You want to modernize and can't think of money. Is there such a good thing?" Zheng Chuankai regained his confidence and started a counterattack.

Hao Yawei said: "For negotiations, the Metallurgical Bureau can send people to assist you in discussing with the Japanese side. You can also contact other suppliers to see if you can find a lower price. Compression budget is a unified arrangement for the entire country. The focus of the entire economic work this year is to shut down and transfer a batch of projects with large investment and slow results. If the budget for Nangang's 1780 rolling mill cannot be compressed, then another plan can only be adopted."

"What plan?" Zheng Chuankai asked.

"Slow down construction." Hao Yawei said, "It will be delayed for two years and wait until the country's economic situation improves before starting again."

"I'm afraid this is not suitable, right?" Qiao Ziyuan, the director of Metallurgy, spoke. He did not communicate directly with Hao Yawei, but looked at Luo Xiangfei, deputy director of the Metallurgy Bureau of the State Economic Commission sitting next to Hao Yawei, and said: "Lao Luo, I remember when you came last time, you told us that the launch of the hot rolling mill is urgent. I still remember you said that our country will cost 30 billion US dollars per year, and it will cost tens of millions of dollars a day. If the project is postponed to put into production for two years because of a decrease of 40 million US dollars, it will not be possible to calculate the account, right?"

Hearing Qiao Ziyuan's words, Hao Yawei wanted to refute it. Luo Xiangfei patted his arm and signaled him to be calm. Then he smiled and said to everyone:

"What Director Qiao said just now is a fact. Our country's steel production technology is seriously backward. In the words of the central leadership, steel is not made of materials and is not suitable for use. Every year, it costs a lot of valuable foreign exchange to import steel from abroad. It is precisely because of this that the country has decided to introduce a batch of steel projects, including our Nangang 1780 hot rolling mill project. This determination is unquestionable.

However, everyone also knows that our country is now facing huge economic difficulties. In the past few years, the stalls were too large and funds were severely short of funds. If the scale of investment cannot be effectively reduced, the lives of the people will be affected and subsequent construction will not be guaranteed.

Under such circumstances, the country decisively dismantled a large number of projects, including the Pujiang Steel Plant mentioned by Director Hao earlier. For this reason, we also bear huge breach of contract compensation to the outside world. Nangang is a key project guaranteed by the State Economic Commission. The Economic Commission also hopes that this project can be put into production on time to alleviate the country's foreign exchange tension. However, the original budget is definitely not guaranteed, and the reduction of 40 million is the result of Director Hao and his careful calculation. The country only has so much money, and if you don't suppress it, other projects will be dismantled. I think everyone can understand this.

So, for us now, there are only two options. One is to continue to tap potential and strive to reduce the funds for introducing equipment by 40 million. The other is to postpone this project and wait for the national economic situation to improve before restarting. Beyond the two options, there is no third way, so everyone no longer has to waste time on the third way."

Luo Xiangfei's tone was very calm, but the firmness in his words was no weaker than Hao Yawei just now. He came to Nanjiang Province as the leader of the Metallurgical Bureau. His words basically represented the final opinion of the Metallurgical Bureau, and Qiao Ziyuan and others could not doubt it.

"This is really difficult." Qiao Ziyuan said, scratching his head, and at the same time turned his attention to Lu Jianyong, deputy chief engineer of the Metallurgy Department. "Xiao Lu, you have been negotiating with foreign merchants. Tell me, is there any room for you?"

Lu Jianyong held up myopia glasses and spoke silly: "Director Luo, Director Qiao, in fact, we have also learned about the quotations of several other RB manufacturers during the negotiation process. The price of Sanli Steel Factory should be considered the lowest. Even if we negotiate with other companies, it may be difficult to suppress the price. If the Metallurgical Bureau must suppress the price, then I think we can only focus on the equipment.

The main rolled line part must not be cut. In terms of finishing equipment, we originally planned to introduce three horizontal shear units, divided into thin plates, medium plates and thick plates. If only two are introduced first and the thick plate lines are left for later introduction, it can be reduced by about 12 million US dollars. If the water treatment, laboratory, maintenance workshop and other parts of auxiliary equipment are really not possible, they can be cancelled first and replaced with the existing facilities of Nangang..."

"How can the laboratory be cancelled?" Luo Xiangfei said in a low voice. "Nangang's existing laboratory equipment is outdated and cannot meet the needs of new hot rolling mills. By then, the production line will be put into production, and the experimental technology cannot keep up. The products produced do not have quality assurance, so the efficiency of this production line will be greatly reduced."

Lu Jianyong nodded bitterly: "Director Luo is right, so..."

He couldn't continue to say anything. In fact, he knew that this method of reducing functions was very inappropriate. He really forced him to come up with a plan, so he could only bite the bullet and say it.

When Qiao Ziyuan saw another deadlock in the venue, he quickly stood up, looked at his watch pretending to be, and then said with a smile:
Chapter completed!