Sail across the sea

Chapter 573 Business Deal Fails, But Relationship Remains
Upon hearing this question, Gao Fan slapped his forehead and said:
"I see? Hmm, this brother's concerns are not unreasonable. How about we sign a performance-based agreement? We guarantee that after the equipment is upgraded, F22s will be produced according to the correct production standards, and the company's gross profit will not be lower than the average of the previous three years. Each year's gross profit will first deduct the average of the previous three years, then repay 1/3 of the upgrade and renovation costs, and the remaining part will be split equally between us. This will be implemented for a total of three years. What do you think?"

"But what if we can't reach the original gross profit?" The man wasn't about to let it go.

Gao Fan chuckled: "Then we'll just have to work for nothing. The 200 million yuan investment in equipment, plus the 300 million yuan technology transfer fee, will all go down the drain. We'll accept our loss."

"You keep saying you worked for nothing, but who will compensate us for our losses?" the man pressed.

Gao Fan shrugged: "Then I guess I'll just have to accept my bad luck."

"If that's the case, then we have no interest in participating."

"That's such a shame."

Gao Fan expressed regret, but his face showed no sign of disappointment. He turned to the crowd and said:
"Brothers, I just explained our Cangfu plan. Of course, whether you are willing to modify the equipment and which cooperation method you choose is your own business."

"We're all in the same industry. Even if a business deal falls through, we can still maintain our friendship. Whether we cooperate or not, I, Gao Fan, am everyone's little brother, and everyone is my elder brother."

“I know that some companies have various difficulties and cannot give up CFCs. We have done a calculation and found that the domestic market demand for fluorocarbon products should be between 8 and 10 tons around 2000. Our plant has an annual production capacity of 5000 tons, so a maximum of 20 such plants nationwide is enough. Any more than that and the market will not be able to absorb it.”

"Our consideration is that, regardless of the cooperation method, we will only accept modification requests for 20 sets of equipment. Those who are interested can register with our staff after the ceremony, and then we will send engineers to conduct on-site inspections and develop modification plans."

"For those who are not interested in this project, but would like to do some sightseeing in the surrounding area, you can also contact our staff and we can arrange transportation for you."

"Okay, that's all I have to say."

His words were concise and to the point, meaning we're not begging you to modify our equipment; if you want to cooperate, come; if you don't, get lost.

As for the talk of nearby tours, that's just a slap in the face. If you've signed a cooperation agreement with Canghai Chemical, enjoying a free tour arranged by them is fine. But if you don't plan to cooperate with Canghai Chemical and still expect them to send you on a trip, you'll never be able to show your face in the industry again.

After Gao Fan stepped down, Xiao Pei came up and said some polite words, and the production launch ceremony came to an end.

As is customary, Cangfu Company prepared lunch for the guests, a very high-standard buffet, which not only reflected the host's warm hospitality but also saved them the trouble of various toasts and social obligations.

Some people feel that a buffet lacks formality, but most people still prefer this approach. The reason is simple: Gao Fan's speech today has presented everyone with a difficult choice, and no one wants to clink glasses with Cang Fu before making a decision.

"Xiao Gao, what do you mean by this? Can you explain it to us?"

This is Wu Zhefu asking Gao Fan a question.

In the small restaurant, only Wu Zhefu, Wan Jiansheng, Gao Yiping, Gao Fan, and Xiao Pei were present. Xiao Pei had been asked by Gao Fan to pour drinks for everyone. Xiao Pei didn't see anything wrong with pouring drinks for everyone; apart from her boss, everyone present was a deputy director-level official, and Gao Yiping was also an elder. What was there for a young woman like her to complain about pouring drinks? Wan Jiansheng also turned his gaze to Gao Fan, wanting to hear about Gao Fan's plans.

Unlike Wu Zhefu, he was somewhat displeased with Gao Fan's claim that he would open up the technology to all enterprises, because all the enterprises present today were from other provinces and regions, and Maolin Province previously only had Yanxiu Refrigerant Factory as a fluorocarbon production enterprise.

According to Lao Wan's idea, since Cangfu has mastered advanced technology, why not install ten units at once, creating a production capacity of 50,000 tons, and capture the entire domestic market? The gross profit per ton of F22 is 5000 yuan, so 50,000 tons would be a gross profit of 250 million yuan. Wouldn't that be a great profit?
"Director Wu, I've thought it over. There's only one way to improve the competitiveness of China's fluorochemical industry: get everyone involved. Only through intense competition can there be vitality," Gao Fan replied.

"Roll it up?" Wan Jiansheng was a little puzzled, imagining the scene of rolling up a bamboo mat in his mind.

“This kid just likes to make up new words. What he means is that he wants everyone to compete, and the fiercer the competition, the more it will promote technological development,” Gao Yiping explained to Wan Jiansheng.

There's no way around it; it's my own kid, so I have to speak up for him.

Fortunately, Gao Yiping today is no longer the small factory director of Canghai Fertilizer Plant. The Fertilizer Industry Group is now directly under the Provincial Economic Commission and its level has been raised to deputy provincial level, so Gao Yiping is theoretically on par with Wan Jiansheng.

Of course, this is just a theoretical calculation. In reality, Gao Yiping's position is below Wan Jiansheng's.

Wu Zhefu was very familiar with Gao Fan, so he naturally understood the meaning of the word "scroll" and knew that it referred not to ordinary competition, but to extremely fierce competition.

He asked, "What effect do you hope to achieve?"

Gao Fan said: "The ideal result is to form a production capacity of more than 10 tons of F22 and other alternatives within one year, with the actual output reaching more than 5 tons, and the price being suppressed to no more than 7000 yuan per ton."

"In this way, CFCs will have no market competitiveness at all, and they will have to withdraw even if they don't want to. Of course, the Ministry of Chemical Industry and the Ministry of Environmental Protection need to put in more effort, such as using production licenses to control their output and levying ozone pollution taxes on users."

"In this way, refrigerator and air conditioner manufacturers will ignore the slight price difference between CFCs and F22 and switch to using F22. When the market share of CFCs drops to an insignificant level, the Ministry of Chemical Industry can announce a forced elimination, and a few small companies will not be able to make a ripple."

"Aren't you afraid those companies will hate you to death?" Wu Zhefu asked with a smile.

Gao Fan straightened his neck and said, "I gave them a chance. The terms I offered were incredibly favorable: free equipment upgrades, and no profit sharing until they earned the average profit of the previous three years. If they still try to bargain after all that, then I'm sorry. Adults always have to be responsible for their actions, don't they?"

"Haha, Lao Gao, your son is quite remarkable. He can teach a group of factory directors and chief engineers in their forties and fifties how to do their jobs." Wan Jiansheng laughed and teased Gao Yiping.

Gao Yiping pretended to keep a straight face and said, "He's still a child himself, what right does an adult have to act like this!"

(End of this chapter)