That year the flowers bloomed 1981

Chapter 1678 A Different Approach
Li Ye led Jin Peng and Li Dayong into the house and asked in surprise, "Brother Peng, when I asked you earlier this year, you said everything was going smoothly. How come things are suddenly not going smoothly now?"

"Can't we brothers even talk about our troubles? Is it really worth it to make you worry until your hair turns white?"

Jin Peng's metal smelting plant was founded three years ago. Logically, it should be reaping the rewards by now. Why is it suddenly not going smoothly?

Jin Peng smiled awkwardly and said, "My hair isn't actually gray from worry, it's because your sister-in-law is so anxious she can't sleep, and that makes it hard for me to sleep either."

"Then something really went wrong. Can you tell me in detail where the problem lies? Is it the electricity? Or the technology?"

Li Ye immediately became serious.

It should be noted that Jin Peng's electrolytic aluminum industrial project was initiated by Li Ye when he was in Suzhou. If the project fails, Li Ye will bear the consequences.

Heavy industry has always been characterized by large investments, high risks, and high technical barriers. During the period of rapid and unregulated development in the 1980s and 1990s, it was not uncommon for projects to invest huge sums of money only to end up losing everything.

Based on Li Ye's two lifetimes of objective experience, the biggest problems with unfinished projects in the 1990s were mainly concentrated in two aspects: one was the extremely tight power supply, and the other was the excessively outdated technology.

Electricity is the most vulnerable sector, because the power shortage over several decades is simply too large.

Therefore, Li Ye had anticipated various difficulties for Jin Peng in advance. On the one hand, he suggested that Jin Peng build his own power plant, and on the other hand, he asked Fu Guiru to help him take advantage of the economic downturn in Japan to introduce some advanced technology and equipment.

Logically speaking, once these two points are resolved, the rest are minor issues.

Jin Peng shook his head and said, "There are no problems with electricity or technology. Our power plant's No. 1 unit is already running normally, and the electrolytic aluminum production equipment has entered the trial production stage. However, we are facing a shortage of raw materials."

"Raw materials? Didn't you sign a contract with the mining department?"

Li Ye was very surprised because in the 1990s, when there were no environmental restrictions, bauxite mining was the most unrestricted link in industrial production. As long as you were willing to spend money, the output could feed you to your heart's content.

"Tsk~, I didn't expect them to change their minds! We've overcome all the obstacles, and in the end they raise the price by 150%, and they can't even guarantee production. So all our efforts have been for nothing, and we're just being treated like dirt?"

In the 1990s, this was a common situation for Jin Peng. You would finally set up the stage, only to have some jerk suddenly appear and take the lead role. If you didn't let him sing, he wouldn't let you start the show. Wouldn't that be infuriating?
Li Ye laughed in anger: "A 150% price increase? Is this outrageous? Peng, didn't you try to negotiate a lower price?"

Jin Peng slowly shook his head again, his tone heavy, and said, "I didn't haggle. Li Ye, you know me. I'm just a street urchin. If someone treats me well, I'll treat them even better."
But if they go too far this time, I'd rather smash the pot than feed them a bloated, fat pig.

Hearing Jin Peng's resounding words, Li Ye knew that the guy was truly angry.

He knew that Jin Peng came from humble beginnings and had a strong personality with a touch of shrewdness. But if some people really went too far, that shrewdness might not be enough. He was capable of doing things like "better to die than live."

So Li Ye half-jokingly tried to comfort him: "Hey, Peng-ge, you're even using idioms now? It seems you're really angry, but this matter isn't that serious. It's not worth getting so angry that your hair turns white."

Jin Peng smiled bitterly and said, "Li Ye, you've never dealt with those people before, so you don't know what it means to push your luck."
I wanted to ask you for help right away, but your sister-in-law stopped me. She said you can help us this once, but not forever. Before we lose everything, let's accept the loss and avoid suffering this humiliation every day.”

Li Ye waved his hand and said, "Brother Peng, you've misunderstood. I have no intention of begging them for face. If they won't give you the raw materials, you can import them from overseas!"

"I've considered importing from overseas, but that's not a viable option."

Jin Peng said dejectedly, "Su'e is willing to sell us bauxite, but their economy is declining year by year, and there are more and more people trying to get rich by exploiting their resources. Transporting raw materials from Su'e to Qingshui County is harder than overcoming five obstacles and defeating six generals."

“If Su’e won’t work, let’s go somewhere else! Let’s try a different approach.” Li Ye pointed to his head and said calmly, “Another day, have your wife come and discuss with Xiaoyu about a raw material processing model.”

There are many places in the world rich in bauxite. We use large ships to unload the raw materials in the island city, and then take the railway to Qingshui County. The price is even lower than in China. After you produce aluminum ingots, you can export them to earn foreign exchange and settle the payment for the raw materials.”

Li Ye's explanation was a bit convoluted, but Jin Peng, who had been working in foreign trade for many years, understood it perfectly.

But he still hesitated, saying, "It sounds feasible, but will it actually work? Won't it be a case of 'a distant solution not quenching an immediate thirst'?"

There are many difficulties in the process of planning a deal and bringing it to fruition. Li Ye's plan sounded "unreliable" at first glance.

These days, there are countless people with wild ideas and the courage to act, but those who succeed are extremely lucky. So Jin Peng's worries are not without reason.

Jin Peng's textile factory in Qingshui County is still operating well. He gave up the aluminum industry but still has textiles. If he listens to Li Ye and continues to work hard...
Heavy industry really requires a lot of money; if you ruin it, you'll lose everything.

However, Li Ye said very confidently, "How could it not work? There's no such thing as a business that's profitable. If it doesn't work, then you just haven't found the right way."

Besides, once you start taking action, you'll publicize it widely and spread the word. Shouldn't the mining company come to you for a talk then?

This approach is definitely feasible, because there are similar business prototypes right there! And it's located in Dongshan, not far from Li Ye's hometown.

Like Jin Peng's wife, this company started with the easiest cotton spinning business and then ventured into electrolytic aluminum.

They also have their own power plants, self-built power grids, and are self-sufficient, which not only reduces the electricity costs for the companies themselves, but also takes into account the electricity and heating needs of surrounding businesses and residents.

Then, by joining forces with several companies, they expanded overseas, took control of the mining lifeline of a small country, quietly made a fortune, and eventually developed into a super private enterprise, whose revenue was even close to surpassing that of Tencent.

More importantly, they have a "reckless approach." If any problem arises in that small overseas country, some turmoil is bound to occur, and everything will develop in a direction that benefits the company.

Although the mainland had not yet joined the WTO in 1995, and there were many restrictions on how this model could be implemented, Jin Peng's factory was not very large at the time, so what was wrong with playing around with it on a small scale?
In fact, if people in mainland China really opened their minds, they would be no less capable than those vultures in the West. It's just that too many upheavals in modern times have made everyone "timid".

Wen Leyu's company has overseas investment business. Is it feasible to invest in an overseas bauxite mine?

Pei Wencong's trading company on Hong Kong Island has also been engaged in "processing with supplied materials" business in the mainland. He is very familiar with the business. Can he do it?

So while a plan that presents many challenges may not be easy to implement, it is certainly feasible.

Moreover, once Jin Peng has the option of overseas raw materials, will those who want to raise prices still be able to sit still?

Moreover, they're going to delay Qingshui County's export earnings! When they make efforts from multiple angles, won't they take advantage of the situation and back down?

Seeing that Jin Peng was still hesitant, Li Ye earnestly said, "Brother Peng, everything is difficult at the beginning. Heavy industry is like that, but once you succeed, it will be a foundation for generations to come."

"You don't need to tell me, I know what's more important. When we were middlemen, the industry and commerce bureau and the tax bureau would avoid us. When we were in the textile business, they would smile at me from afar. Now, people from the city come to me for meals every few days."
It benefits the country and its people! You told me this more than ten years ago, and I remember it all.”

(End of this chapter)