Sail across the sea

Chapter 362 Half for each side

The matter did not end there.

A few days later, several media outlets in Maolin Province collectively released a message: In order to rapidly increase the province's urea production and serve agricultural production, the Maolin Provincial Department of Chemical Industry decided to establish the Maolin Provincial Fertilizer Industry Group Company to take full responsibility for the conversion of small-scale nitrogen fertilizers from ammonium to urea in Maolin Province.

Along with publishing this news, the Maolin Daily also published an interview with reporter Sun Shanshan with Gao Yiping, the newly appointed general manager of the Provincial Fertilizer Industry Group Company. In the interview, Gao Yiping made several points:

First, the Department of Chemical Industry has preliminarily identified four small nitrogen fertilizer plants suitable for carrying out the ammonium-to-urine conversion project, and the Provincial Fertilizer Company will begin consultations with these four nitrogen fertilizer plants starting today.

Secondly, after the conversion from ammonium to urea is completed, the urea produced by the nitrogen fertilizer plant will be prioritized for supply to local rural areas. Based on the experience of Canghai Fertilizer Plant, a small nitrogen fertilizer plant with an annual output of 4 tons of urea can meet the entire agricultural production needs of 4-5 surrounding counties.

Third, in accordance with the central government's spirit of "solving economic problems through economic means," the ammonium-to-urine conversion project will be carried out entirely on the principles of mutual benefit, voluntariness, and equality, through cooperation between the provincial fertilizer company and the cities and counties where the small nitrogen fertilizer plants are located. The converted nitrogen fertilizer plants will have their equity distributed according to the investment ratio of both parties.

Fourth, other small nitrogen fertilizer companies interested in ammonium-to-urine conversion are welcome to contact the provincial fertilizer company to discuss the feasibility of carrying out ammonium-to-urine conversion work.

To save costs, we have already selected four factories to work on this project; if successful, the urea will remain locally; cooperation is on a voluntary basis—those who want to work can do it, and those who don't can leave; companies not on the list are welcome to be backup options.

What were the terms offered by the fertilizer company?

In the small conference room of the Cangyuan County Government, County Head Meng Zimin asked Tan Rongjiang, who had been summoned to report on the situation, a question.

"The county nitrogen fertilizer plant remains one of the first designated plants for the ammonium-to-urine conversion project. The investment in the ammonium-to-urine conversion project is 20 million yuan, with the province contributing 10 million yuan and the county raising the remaining 10 million yuan, with each party holding 50% of the shares," Tan Rongjiang said.

This condition was what Gao Yiping told him on the phone the day before. Tan Rongjiang had originally called the provincial department to inquire about the situation, but the provincial department directly transferred the call to Gao Yiping, saying that the fertilizer industry company would be responsible for the conversion of ammonium to urine from now on.

Tan Rongjiang also learned that Gao Yiping had already started working at Ruizhang. According to another source, Gao Yiping is currently maintaining his previous position as a division-level official, and the provincial department has hinted that he will be promoted by half a level after the completion of the subsequent conversion of four ammonium phosphate plants to urine-based products.

This next piece of news filled Tan Rongjiang with envy, jealousy, and resentment, while also stirring a faint hope within him. If Cangyuan Nitrogen Fertilizer Plant became a subsidiary of the fertilizer company, perhaps he, as the plant manager, could even be promoted by half a rank?

However, it was too early to think about this now. When Tan Rongjiang heard the conditions Gao Yiping offered him, he knew things were not going well. The county would never accept these conditions.

"Wasn't it originally agreed that the province would contribute 1200 million and the county 800 million, with each side contributing half?" Deputy County Head Niu Jianping asked.

Tan Rongjiang explained, "The plan that County Chief Niu mentioned was a request we made, but the province did not agree to it. I heard from the bottom of the heart that the Ministry allocated a special fund for the ammonium-to-urine conversion project, at a standard of 600 million yuan per factory. The Provincial Department of Chemical Industry added 400 million yuan to each factory, which brought up 1000 million yuan. They couldn't come up with any more than that."

"Based on this calculation, if four companies across the province are to be renovated, the Provincial Department of Chemical Industry will have to come up with 1600 million yuan, which is quite a burden," sighed another deputy county head named Wang Zhou. County officials frequently have to go to the provincial government to solicit donations, and they know that the various departments and bureaus in the province are actually not exactly flush with cash. The Department of Chemical Industry coming up with 1600 million yuan at once is indeed a significant sum.

Tan Rongjiang said with a wry smile, "You leaders may not know this, but half of the 1600 million yuan that the Provincial Department of Chemical Industry provided was borrowed from Canghai Fertilizer Plant. It will be repaid from the profits of the ammonium-to-urine conversion project. Gao Yiping's appointment as the general manager of the fertilizer company is related to this matter."

"What? Half of it was borrowed from Canghai Fertilizer Plant? That's 800 million! Canghai Fertilizer Plant is so rich?" Niu Jianping exclaimed in surprise.

"They were the first pilot plant for ammonium chloride to urine conversion. They only started production around this time last year, right? How could they have made so much money in just one year?" Meng Zimin was also somewhat surprised.

"No, not at all." Tan Rongjiang quickly denied it, not wanting everyone to think that ammonium sulfate conversion to urine could make a lot of money and put too much expectation on him, which would leave him dumbfounded.

“The current ex-factory price of urea is 420 yuan per ton. The annual output of Canghai Plant is 4 tons, which is 1680 million yuan in output value. If the profit and tax can reach 1/3, it will be at most 500 million yuan. The maximum amount that ends up in Gao Yiping’s hands is 200 million yuan.”

Tan Rongjiang analyzed the situation for everyone. As the director of the fertilizer plant, he was quite professional at calculating costs and benefits.

"Where did the money for Canghai Factory come from?" Niu Jianping asked.

Tan Rongjiang sighed and said, "Gao Yiping, the director of Canghai Fertilizer Plant, has a son named Gao Fan. Everyone says he has special abilities. The year before last, Minister Zheng from the Ministry of Chemical Industry came to Maolin and appointed Gao Fan to contract the plant's labor service company. As a result, he renamed the labor service company Canghua Science and Trade..."

“I know about this,” Wang Zhou interrupted Tan Rongjiang’s story. “It’s about that guy who got tens of millions of dollars from abroad and sold Vitamin C to the United States.”

Everyone looked enlightened. The higher up the hierarchy, the more people knew about this. Who wouldn't envy that Cangtang County had produced such a prodigy?
"So, the money was paid by Gao Yiping's son, and then Gao Yiping benefited from his son's connections and became the general manager of the provincial fertilizer industry company." Niu Jianping sorted out the matter and couldn't help but sigh.

They were all cadres within the system, and they were very sensitive about things like rank. Although Niu Jianping hadn't inquired, he could guess that Gao Yiping was about to be promoted.

"Let's not talk about Canghai Factory anymore," Meng Zimin said, changing the subject. "The province is offering 1000 million, we're offering 1000 million, and the shares will be split equally. We absolutely cannot accept this offer."

"Leaving aside how difficult it is for us to raise 1000 million yuan, the ammonium-to-urine conversion project itself involves modifying the original equipment of the county's nitrogen fertilizer plant, and it also occupies land in Cangyuan County. Shouldn't the investment in this old equipment and land be included in the calculation?"

Tan Rongjiang said, "The province said that the ammonium phosphate conversion technology belongs to the state and should be counted as technology investment. Also, the ammonium phosphate conversion equipment was manufactured by Maoming Chemical Machinery, and Maoming Chemical Machinery calculated the cost price for the province. If calculated according to the market price, the investment of 2000 million yuan would not be enough."

"Isn't this just being a rogue!" Niu Jianping roared. "Why should the country's technology be included in the shareholding? Our Cangyuan County government is also a national government, and we have to pay taxes to the country. When did the country and we start making such a clear distinction?"

(End of this chapter)