I'm the Dauphin in France

Chapter 897 Come on, let’s start production of steam engines like crazy!

Bolton immediately stood up and looked at Sandor and said:

"John, this is not what we agreed on. You have already..."

In order to get Sandel to switch jobs, he offered 7 pounds plus 4% of Bolton-Watt's shares.

Sandel quickly signaled to his cousin Frank. He only had technical skills, but to successfully carry out the task assigned to him by His Royal Highness the Crown Prince, he needed experience in company management and good eloquence. So the Intelligence Agency arranged for a "cousin" to come to the UK with him.

Frank immediately replied:
“Excuse me for being frank, but my cousin and I gave up the favorable conditions in France and returned to the UK not just for a little money, but for a career that truly belongs to us.

"And considering what happened to my cousin before..."

He glanced at Watt vaguely:
"Without sufficient shares, it would be hard for my cousin to be sure that his future would be secure."

Bolton couldn't help but sigh when he heard this.

He knew that Watt had used his power to suppress Sandel in the past, causing the "high-pressure pressure gauge" he invented to be shelved for a long time, and eventually he had to leave the company with hatred.

So it is understandable that Sandel has concerns.

Bolton and Falconer exchanged glances quickly, coughed lightly, and said:
"John, I also think you should increase your stake, but 20% is too much.

"As you know, 20% of the company's shares are worth at least 7 pounds. Perhaps, you can raise your shares to 6% first."

At the glance of his "cousin", Sander spoke the lines he had prepared:

"Well, I have enough money, I can invest. Oh, and there are patents."

Frank explained:

"My cousin is willing to pay 14 pounds, plus all the patents for the high-pressure steam engine, to obtain an additional % of the shares."

He looked at the other shareholders and said, "You should all know that if patents are in the hands of one individual, it can easily harm the company's development."

All shareholders, including Bolton and Falconer, were moved.

Previously, because Watt held a large number of standard-pressure steam engine patents and tried his best to suppress high-pressure steam engines, the company had to hire Sandel at a high price to develop high-pressure technology.

In fact, Sandel was willing to sell the high-pressure steam engine patent to the company because he was really thinking about the company's future.

He also took out 2 pounds.

The shareholders all knew that Bolton was just bluffing. The company's business has been shrinking in the past two years, and now 14% of the shares are not worth even 4 pounds.

Falconer was the first to speak out: "In this case, I agree that Mr. Sandel will get 20% of the shares."

Several small shareholders immediately followed suit.

Bolton glanced at the silent Watt and nodded:
“The company is about to start production of high-pressure steam engines, which requires a large amount of capital.

"If we had the twenty thousand pounds from Mr. Sandel, we should hardly have to borrow money.

“Also, it is very important for the company to control the patented technology.

"So, I agree to Mr. Sandel's share request. The shares he gets will be shared by all other shareholders."

Soon, all the small shareholders except Watt voted in favor.

Then the attitude of Watt, who holds a 28% stake, is insignificant - according to company regulations, any major resolution requires the consent of more than 70% of shareholders.

At Bolton's suggestion, the board secretary immediately went to prepare the equity transfer agreement. Bolton couldn't wait to start the most concerned topic:
"Then let's start discussing the commissioning of the high-pressure steam engine."

He flipped through the documents on the table:
"The Navy's requirement is to deliver at least 6 high-pressure steam engines and their associated repair parts by June. To achieve this goal, we need to invest..."

He looked at Sandor and said, "John, it's up to you to determine the investment in the new workshop."

Before Sander could speak, Frank suddenly said loudly:
"Mr. Bolton, why is our goal to produce only 22 machines?"

"Ah? Because the Navy's order is for 22 units..."

"Excuse me, you are lacking foresight in doing this." Frank turned around and looked at the other shareholders, "Everyone knows that the higher the planned output, the lower the cost.

"If we only produce 22 units, the cost of our high-pressure steam engine will probably be twice or even three times higher than the French ones of the same level!"

His expression was extremely solemn: "After we deliver the navy's order, are we going to face poor sales?"

The shareholders immediately whispered to each other and nodded.

Frank continued to "fool around":
“Do you know why the price of French steam engines is so low?
“From the beginning, they planned to produce at least 150 steam engines a year, and based on this, they built factories and ordered raw materials, which pushed the price to an extremely low level.

"If we want to defeat French products and occupy the European market, we must be more determined!"

A shareholder immediately asked, "So what do you think our production should be?"

Sandel received a look from his "cousin" and replied, "At least 200 units per year."

Bolton and the others immediately gasped: "So many?"

Frank explains:

"The French high-pressure steam engine has been in production for a long time, the technology is mature, and the cost is very low. We must use a larger scale to achieve lower costs."

One shareholder asked cautiously: "But can so many steam engines be sold?"

"Of course!" Frank said confidently, "Last year, the French product sold hundreds of units in Upper Hesse alone, and nearly 300 units in Europe.

“Even though it’s hard for our steam engines to enter France, we have a domestic market.

"As long as our price is lower than that of French products, we can even sell 300 units a year. So setting the production scale at 200 units is a very conservative plan."

Yes, the core of Joseph's plan was to make Bolt-Watt Company fall into blind expansion of production, and eventually go bankrupt due to the failure to get a return on the huge investment.

Of course, this is just the worst possible scenario.

It is more likely that the British government would not sit idly by and watch the country's most advanced steam engine company go bankrupt, and would continue to provide financial subsidies.

And this money is destined to be wasted.

Because Sandel came to the UK this time to "dig a hole" for the Bolton-Watt Company.

The newly built high-pressure steam engine adopted the elimination plan that had been proven to be unworkable by the French United Steam Engine Company. It did not involve the most core technologies such as "cylinder forging process", "sandwich riveting process", "spring-loaded safety valve", "four-way valve", and "new high-pressure instrument".

This high-pressure steam engine can indeed barely output 50 horsepower, but if you want to increase it even a little bit, you have to start all over again.

Even more, if British technicians form inertial thinking due to this plan and get stuck in the wrong path, it will take up more energy and money than developing the product from scratch.

And even in this elimination plan, Sandel had left a trap.

(End of this chapter)