Sail across the sea

Chapter 574: We can only take a gamble.
"Old Duan, are you really planning to cooperate with that young man?"

In a corner of the large restaurant, Shu Fukang, the director of Ping'an Chemical Plant in Muyang Province, peeled shrimp while asking Duan Shuangxi, the director of Zhankou Chemical Plant in Fengshi Province.

These two are both factory directors in heavy industry plants. They have huge appetites, and each of them has a plate full of various foods, ninety percent of which are main dishes.

Duan Shuangxi was the factory director Gao Fan had mentioned before, who had traveled "three thousand miles" to attend the ceremony. His purpose in coming here was definitely not to take a free trip, but to take this opportunity to look for opportunities in the east.

Of course, the fact that it was free was the main reason he decided to take this trip, because his factory was just too poor.

Fengshi Province is located in the northwest and its economy is very underdeveloped. Zhifeng County, where Zhankou Chemical Plant is located, has an annual total industrial output value of only over 1000 million yuan. Apart from Zhankou Chemical Plant, the few county-owned enterprises are not profitable. If they can break even at the end of the year and do not need county subsidies, the county head should be happy to have a drink to celebrate.

Zhankou Chemical Plant was the only profitable enterprise in the county, though the profit was modest, only around 50 yuan a year. The county took all the profits to subsidize the fiscal deficit, and Duan Shuangxi had no complaints about it.

The impending elimination of CFCs deeply worried Duan Shuangxi. Newspapers reported the elimination deadline as 2000, but Duan felt this was the absolute deadline, and that the government always proceeded in stages. If all CFCs were to be eliminated by 2000, perhaps half would have been eliminated before 1997.

If that's the case, which companies would the government choose to eliminate first?
Duan Shuangxi was experienced in this regard, having previously served as the director of a county fertilizer plant. He knew how the country had phased out small-scale fertilizer plants back then. The method involved directly setting technical specifications, stipulating the required coal consumption levels, and then, once the deadline was reached, those that met the standards were retained, while those that didn't were eliminated.

If the same policy were applied to fluorocarbon companies, Zhankou Chemical Plant would undoubtedly be among the first to be eliminated. The reason is simple: when the plant was built, the county didn't have much funding, and much of the equipment was rudimentary and substandard. Wasn't it inevitable that the plant's technical specifications would be at the bottom of the industry?

Duan Shuangxi came here to exchange ideas with his domestic counterparts, to see what self-rescue methods he could use, or if he could get some help from others so that his company could survive the crisis for a little longer.

To his surprise, Gao Fan directly proposed such a shocking plan and declared that either he should stand with him or he should wait to be swallowed up by the storm he had stirred up.

"I want to take a gamble."

Duan Shuangxi spoke to Shu Fukang in a low voice.

"Yeah, I'm tempted too. Gao Fan's description is too enticing. We don't have to spend a penny. We just need to sign an agreement, and he'll help us upgrade and modify the equipment. We can earn 10 million in gross profit in the next year, split 50/50, and we'll get 5 million net. Goodness, if my factory can earn 5 million a year, and the county doesn't give me a deputy county-level position, I'll never forgive them."

Shu Fukang spoke with excitement, but there was a hint of sarcasm in his voice, because he was somewhat skeptical of the cake Gao Fan had drawn.

“The risks are also very high,” Duan Shuangxi said. “I’ve looked into F22; the domestic demand isn’t large. A ton of F22 costs more than twice as much as a ton of R11, so refrigerator manufacturers don’t want it, and neither do polyurethane manufacturers. If our factory switches to producing F22 and can’t sell it, we’ll be stuck with it, which would be a complete loss. Fengshi is too remote; it’s too difficult to sell F22 to the inland areas.”

Shu Fukang said, "This is something our small bodies can't handle. I've decided that after dinner I'll go to the post office and call the county to let them decide. It's such a big matter; I reckon the county will have to hold a standing committee meeting to discuss it. I'll just wait here for their reply." Duan Shuangxi smiled wryly, "That's what I thought at first too. But I know the situation in our county all too well. The main leaders there are all very timid; if I told them about this, nine times out of ten they wouldn't dare agree."

"Also, didn't Gao Fan say that they would only accept modifications from 20 companies? Actually, I noticed that he said 20 sets of equipment. If some companies request modifications to 2 sets, then there won't even be 20 companies."

"If I wait here for the county to hold a meeting to discuss it and then inform me of the results, this matter will probably fall through."

"Then what are you going to do?"

“I came with the company seal; I plan to sign the contract directly with Cangfu.”

"Are you crazy! Do you know how much responsibility you'll bear if we lose money?"

“There was no other way. I was terrified of poverty, so I had to take a gamble,” Duan Shuangxi said. He took a sip of his drink, remained silent for a moment, and then said quietly, “Old Shu, you’ve never been to our area, so you don’t know how poor we are. Less than half of the children in our county can go to school. The teachers in the rural schools can’t even be paid their salaries. The county asked for my profits, saying it was to pay the rural teachers’ salaries, and I handed it all over without hesitation.”

"Sigh, Lao Duan, you've suffered too." Shu Fukang said with some emotion.

He and Duan Shuangxi were old friends. He knew that Duan Shuangxi was an upright person who had served as a factory director in a state-owned enterprise for many years without ever seeking personal gain. He was a rare and honest person.

Duan Shuangxi picked up a large piece of braised pork and stuffed it into his mouth, chewing it with a crunching sound. He looked up at the food counter piled high with various delicacies, suddenly laughed, and said:

"Old Shu, seeing the meal that Cangfu treated us to, I have even more confidence in the prospects of cooperating with them. Look at this, braised pork, chicken legs, and Si Te liquor, take as much as you can eat, only a wealthy organization can afford to do this."

"I think this Gao Fan must have the Midas touch. I hope he's not deceiving us. As long as we can make money, I wouldn't mind giving them an extra 10% when it comes to the final profit split."

Shu Fukang said, "Old Duan, since you've made up your mind, I think you might as well go and talk to Gao Fan. You can also talk to him about what you just said about the kids in the county not having access to education, and ask him to take better care of your area when we cooperate."

“Think about it, he said he’d build 20 sets of equipment across the country, so there must be some who are closer to him and some who are less so. Go to him, try to appeal to his emotions, maybe this young man is kind-hearted and can give you some advice.”

“That’s a good idea.” Duan Shuangxi’s eyes lit up. “I’ll go and find out where he works, and I’ll go find him as soon as I start work this afternoon.”

(End of this chapter)