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Chapter 21 Underestimate

After two rounds of wine, Liu Weidong started talking about Caifeng Ceramics Company, a German second-hand production line.

The first purpose of introducing this production line is to improve the technical level of ceramic production in Tianbei City.

Although the production line of Taihu Zhenghong Ceramics Company was produced by Germany's Necky Company in 1979 and has been used by Taihu Zhenghong Ceramics Company for more than nine years, it is still the most advanced production line in the mainland.

Because at this time, all ceramic factories in mainland China used manual street stalls to make blanks, and then transported them to the kiln for firing. If Caifeng Ceramics can successfully introduce this washing tank horizontal micro-pressure casting production line, the washing tank blank production process can be fully mechanized and automated, thus becoming the most advanced washing tank manufacturer in the country.

The second purpose of introducing this production line is to enhance the export and foreign exchange entrepreneurship capabilities of Tianbei City First Light System.

According to the supply contract signed by Caifeng Ceramics Company and Hong Kong Nixing Ceramic Equipment Company, 60% of the payment for this second-hand production line is paid in foreign exchange, and the remaining 40% of the payment for the goods will be paid in return after the production line is officially put into production, and the product will be resale and exported in a way to compensate for trade.

At the same time, Hong Kong Nixing Ceramics Equipment Company also promised that after Caifeng Ceramics Company repaid the equipment funds through compensation trade, all the washing tanks produced by this production line will be exported through Tianbei Minmetals and Pharmaceutical Company.

According to the design production capacity of the production line, Caifeng Ceramics Company will earn at least one million US dollars in foreign exchange every year. That is to say, Caifeng Ceramics Company only needs half a year to earn back the foreign exchange quota of 600,000 US dollars in foreign exchange quota used to introduce this production line, and then earn one million US dollars in foreign exchange every year. This will greatly improve the foreign exchange creeping system of Tianbei City and alleviate the shortage of foreign exchange in Tianbei City.

Liu Weidong also did a lot of work on how to determine the price of this second-hand production line, and also went to the Beijing Light Industry Department to consult relevant experts.

According to the international practice of purchasing second-hand equipment, the price of equipment within a ten-year period is about 25% to 50% of the original price of the equipment. The longer the service life, the cheaper the price.

The original price of this production line, Taihu Zhenghong Ceramics, purchased in 1979, was 7 million marks, which was about 3.9 million US dollars. As of last year, Taihu Zhenghong Ceramics officially stopped using this production line, and the service life of this production line was eight years and three months.

In this case, Liu Weidong finally pushed the price of this production line to one million US dollars, which is 25.6% of the original factory price, which can be said to be quite difficult.

Then there is the on-site inspection of this second-hand production line.

Although in October last year, Taihu announced the opening of restrictions on Taihu personnel visiting relatives in the mainland, which triggered a wave of investment in Taihu enterprises in the mainland, it is not that easy for mainland personnel to go to Taihu area.

According to Taihu regulations, personnel in mainland China can only be allowed to go to Taihu under cultural exchanges, and it is limited to Taipei City, an open area.

However, Taihu Zhenghong Ceramics Company is located in Yingge area, known as the "Jingdezhen" in Taihu. Even if Caifeng Ceramics Company enters Taihu as a cultural personnel, there is no chance to go to Taihu Zhenghong Ceramics Company to inspect the equipment on site, let alone Caifeng Ceramics Company does not dare to take this risk.

Finally, Liu Weidong found reliable ceramic equipment experts in Hong Kong through the Provincial Light Industry Department. Accompanied by relevant personnel from Hong Kong Nixing Ceramics Equipment Company, he went to Taihu Zhenghong Ceramics Company to conduct on-site inspection and appraisal of the production line, and figured out the performance and newness of the production line.

At Liu Weidong's request, Hong Kong Nixing Ceramics Equipment Company also asked Taihu Zhenghong Ceramics Company to provide a series of documents to further determine the functions of this production line.

The first is the technical archives of this production line, including the production records and maintenance records of this production line over the years.

The second is the factory certificate of this production line.

Third, Zhenghong Ceramics Company’s transactions in purchasing this production line that year.

At the same time, it is required to take all the equipment on the production line and all the documents that can be taken.

In order to ensure that everything is foolproof, Liu Weidong also sent a fax to Germany's Necky Company based on the equipment factory certificate taken by the Hong Kong expert, asking whether the performance parameters of this production line matched the equipment documents provided by Zhenghong Ceramics Company.

After all these preliminary work was completed, Liu Weidong officially signed a equipment introduction contract with Hong Kong Nikkei Ceramic Equipment Company, and paid a deposit of 15% to Hong Kong Nikkei Ceramic Equipment Company by letter of credit.

After Hong Kong Nikkei Ceramics Equipment Company transported all the equipment of this production line to the workshop of Caifeng Ceramics Company and provided a full set of technical files and relevant documents, Caifeng Ceramics Company paid 450,000 yuan of equipment to Hong Kong Nikkei Ceramics Equipment Company. The remaining 40% of the funds, that is, 400,000 US dollars, will be paid after Hong Kong Nikkei Ceramics Equipment Company has completed the installation and commissioning of the production line and the equipment is officially put into production and produces qualified products.

After Liu Weidong explained the twists and turns of the process, Hao Guoqing was already stunned. He had never expected that the process of introducing a second-hand production line from abroad would be so complicated and cumbersome, and so many things needed to be considered.

It seems that the position of director can indeed train people. Liu Weidong, like him, has a junior high school education, but can consider such complicated things without missing a trace.

Hao Shuang sat aside and sighed secretly.

He had always thought in his heart that Caifeng Ceramics Company's second-hand production line, which was finally failing, was definitely to blame, and he even doubted whether Liu Weidong would collude with Tan Jinxuan, the boss of Hong Kong Rixing Ceramics Equipment Company, and took kickbacks during the process of introducing this project.

But now after hearing Liu Weidong's detailed account, Hao Shuang felt very ashamed. He not only underestimated Liu Weidong's ability level as the deputy director of the First Light Bureau, but also underestimated Liu Weidong's awareness and feelings as an entrepreneur who grew up from a worker.

Especially considering Liu Weidong's junior high school education, everything he did in the introduction process of this production line can almost be said to be the best he can do.
Chapter completed!
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