Sail across the sea

Chapter 422 Eat the Sugar Coating

"You mean we shouldn't fall for his tricks?" Yun Zhongming asked.

Gao Fan said, "No, no, Chief Engineer Yun, what I mean is, since the Japanese have thrown us a sugar-coated bullet, then we should eat the sugar coating and throw the bullet back at them."

"I would like to hear the details," Yun Zhongming said.

He no longer cared about maintaining his composure. After negotiating with Fujiki for some time, he realized that he was simply not cut out for business. This kind of cutthroat competition in the marketplace was best left to professionals.

Among the people he knows, who is the most professional?
Of course, it's this little boy named Gao Fan.

Gao Fan said, "Chief Engineer Yun, what Fujiki said is correct. Chemical plants need to be built on a large scale, otherwise they will not be competitive in the market. Director Bi's original idea was to build a 50-ton unit, but I think that's too conservative."

"Since Fujiki has agreed to buy 25% of your products, you might as well just do as he says and install a 200-ton unit. By the way, Chief Engineer Yun, you're not saying you can't raise the 4000 million yuan for initial investment, are you?"

"No way. Our institute has its own printing press; printing 4000 million wouldn't be difficult for us," Yun Zhongming retorted irritably.

Gao Fan is a good kid in every way, except he's so infuriating when he talks. If you try to argue with him, you'll end up getting really angry.

An investment of 4000 million is certainly a large sum. However, if a sufficiently large return is guaranteed to quickly recoup the investment, the Maple Forest Research Institute, with its resources, should be able to raise such a sum. Yun Zhongming didn't want to argue with Gao Fan about this issue.

"Actually, Fujiki's conspiracy was to gamble that the Fenglin Research Institute wouldn't be able to sell the remaining 150 tons of photoresist. He agreed to sell 50 tons for Fenglin, on the condition that Fenglin produced 200 tons. If the remaining 150 tons couldn't be sold, Fenglin would be dragged down by this inventory, not only failing to form a virtuous cycle from commerce to scientific research, but even its existing research system would be destroyed. And this is exactly what Fujiki wanted to see," Gao Fan analyzed.

To be honest, Fujiki's scheme could be considered a "open conspiracy." He didn't care whether Kaede could see through it or not; he was betting that Kaede would be caught in a dilemma on this issue.

Yun Zhongming himself understood this point; all he needed was Gao Fan's solution. So, following Gao Fan's lead, he asked, "So, do you think we can sell the remaining 150 tons?"

"Of course," Gao Fan replied with certainty.

"Are you so confident?" Yun Zhongming asked in surprise.

Previously, Gao Fan had only promised to help Fenglin sell 500 million yuan worth of products, equivalent to 10 tons of output. Now, however, he said he was confident he could sell all 150 tons, which shocked Yun Zhongming.

The market situation for photoresist is not complicated. The companies that need to purchase photoresist are definitely integrated circuit manufacturers. Apart from small and medium-sized enterprises with very small demand, there are only a few dozen large companies that determine market demand. Yun Zhongming can even recite the names of these companies by heart.

These large integrated circuit companies are located in a few countries and Taiwan. They each have their own familiar suppliers and do not easily change suppliers.

Furthermore, if traditional chemical companies like Senya want to squeeze out newcomers, it would be very easy for them to use tactics such as price reductions and bundled sales to force integrated circuit manufacturers to reject Fenglin's products.

Because he understood this, Yun Zhongming believed that it would be very difficult for Fenglin to obtain an order for 150 tons in the international market.

“How will you know if you don’t try?” Gao Fan said with a laugh on the other end of the phone. “Chief Engineer Yun, I’ve been in Beijing these past few days and I’ve done some research. I’ve made some progress on the sales of photoresist.”

"What I need now is for Fenglin Institute to provide me with detailed technical data and prepare some samples so that the client can use them for verification. In addition, I need to arrange for an engineer who can travel abroad to go on a trip with me, probably in the second half of the year."

"Which country are you going to?" Yun Zhongming asked.

“The United States,” Gao Fan said. “If it’s the United States, there aren’t many restrictions,” Yun Zhongming said. “Our institute has cooperated with the United States quite a bit in recent years, and many of our colleagues have been there.”

"I see." Gao Fan nodded, realizing he had been overthinking things.

This was during what was known as a period of peaceful coexistence, during which the Chinese and American militaries engaged in a series of collaborations, so there were few restrictions on researchers from military industrial units traveling abroad.

Moreover, at that time, the United States was at its zenith and was quite concerned about its image, so it wouldn't easily do something like directly detaining researchers from another country. If it were 40 years later, let alone inviting personnel from the Fenglin Institute to visit the United States, Gao Fan himself would have to assess the risks before going to the United States. Who knows what kind of trouble that old man in the White House might cause at the last minute?

"Are you planning to market our photoresist to American integrated circuit companies?" Yun Zhongming asked.

Gao Fan said, "In the second half of this year, a global electronics show will be held in Atlanta, and some integrated circuit manufacturers from around the world will participate. I think this is a good opportunity to promote photoresist."

"How sure are you?"

How can you know if you don't try it?

"You spent half a day searching for information in Beijing, and this is all you found?"

“How is that possible? I’ve also found detailed information on various integrated circuit manufacturers, including the birth dates of their purchasing directors. I can then tailor my marketing strategy to them.”

"Could you provide us with a copy of the information you mentioned beforehand for reference?"

"Not at the moment."

"why?"

"Some things won't work if they're leaked beforehand."

"you are vicious!"

Yun Zhongming slammed down the phone in a huff, his teeth grinding together.

There's nothing we can do; that's what it means to be controlled by others. If he had a way to sell the photoresist himself, he wouldn't have to be manipulated by that little brat.

However, the call wasn't in vain; he at least learned Gao Fan's attitude towards the matter, which was to support Fenglin Institute in launching a 200-ton equipment.

Given Yun Zhongming's understanding of Gao Fan, his willingness to make such a suggestion must indicate that he was sufficiently confident.

Of course, Fenglin Institute wouldn't place all its hopes on Gao Fan alone. In fact, the Science and Technology Commission also has some channels. If Gao Fan is added as an insurance, then the photoresist project can be completed.

With an annual production of 200 tons of photoresist, and a profit of 20 yuan per ton, that's a whopping 4000 million yuan in profit a year. Even with some management costs added, the entire investment can be recovered in two to three years, after which it's pure profit.

So pretty!
(End of this chapter)