We are all reborn, who wants to be the richest man?

Chapter 709 Procurement
In the spacious and bright conference room of Luwu Equipment Company, the seating arrangement of the participants from both sides appeared orderly with clear boundaries, and the atmosphere in each camp was solemn and focused.

On one side were the people sent from above, from the General Logistics Department. The leader was called Zhang Nan, who wore glasses and looked a bit literary, and one could say he had the temperament of a Confucian general.

At the current stage, this type of procurement affairs is completely coordinated and managed by their department. Since there is no final assembly yet, all related work needs to be efficiently coordinated and executed directly through their department.

The other party is the management of Luwu Equipment Company, headed by Vasilisa.

"General Manager Vasilisa, I think you already know why we are here this time. We hope that your company can give us a reasonable price so that our cooperation can be completed smoothly."

Vasilisa, it really is a button.

Didn't they say they had already purchased twelve X-01 fighters? Why were they still negotiating the price?

This is mainly because the purchase quantity this time is large, unlike the previous purchase of a total of twelve aircraft divided into two batches.

There is another point, which is the purchase of X-01m.

The X-01m is the Army version, which was the model that made its first successful flight three months ago.

After removing the two engines, not only did the maximum range reach 2780 kilometers, but the maximum flight speed also exceeded Mach 2.2.

It has to be said that in terms of aircraft design, Polar Bear is ahead of the United States. There is a gap in engine thrust, but the flight speed of X-01m exceeds that of F16 and the United States' latest fourth-generation aircraft.

"I wonder how many aircraft you plan to purchase this time?"

Zhang Nan lowered his head and confirmed the documents on his desk again, but did not answer the other party's specific number.

"I can only say that the number will not be less than 100. The specific number depends on the price you offer, and this is only the first batch. If the price is right, there will be no less orders in the future."

Hundreds? Everyone who heard this number was delighted, but no one showed it.

The domestic air force now has more than 4000 aircraft of various models, including about 1200 fighter jets. Replacing hundreds of aircraft is a very large order.

You know, the J10 prototype has already started manufacturing, and with so much money invested, it is impossible for them not to purchase it.

However, Lu Wu has already thought about this, and will focus the research and development direction towards heavy fighters and other types of aircraft.

The land-based version of the X-01m is a single-engine fighter and a medium-sized fighter, which has some overlap with the attributes and functions of the J10.

If there were other types of more advanced fighter jets, Lu Wu would not lack orders in the field of medium fighter jets.

"How about $2800 million?".

Zhang Nan's eyes lit up at the price. You know, the price of F16 purchased by the US military has exceeded 3000 million US dollars. The international version is even more expensive, and there is no demand for it because no one is selling it.

When he originally came, the price discussed by the department was 3500 million US dollars. As long as the price was lower than this, Zhang Nan could directly decide on the order.

Unexpectedly, Lu Wu quoted him such a low price.

"I want to suspend the negotiations. I need to communicate with the higher-ups."

"No problem." It was normal to ask for permission for such a large purchase, and Vasilisa made a gesture of "please feel free".

Watching Zhang Nan leave the meeting room, Vasilisa asked someone to entertain him and left the meeting room for her office.

In the conference room, there were all kinds of fruit snacks, and even several bottles of red wine and champagne.

Now that China is becoming more and more integrated with the international standards, I don’t know when the custom of opening champagne while signing a contract became popular in China.

There is a lounge at the innermost corner of the conference room floor, which is arranged for Zhang Nan and his team.

There was no one inside at this time, only Zhang Nan, who had just come in, was sitting on a chair and talking on the phone.

"Really? Did you hear that correctly?"

"Really, 2800 million US dollars, if the quantity is increased, the price should be able to be lowered."

In fact, Zhang Nan could decide on the price, but he had to make the call.

What does 2800 million US dollars mean? The SU27 that is being introduced is priced at 4000 million US dollars.

If it is possible, it is no longer necessary to consider it from a value perspective. Also, the J10 currently being manufactured, although there is no specific cost, but the manufacturing cost of more than 3000 million US dollars is basically set in stone, at least breaking the price of 2800 million US dollars.

The Japanese have a complete set of mature technology and industrial system, but the J10 does not.

When Zhang Nan came this time, the budget given was 35 billion US dollars.

The price in mind is US$3500 million per aircraft, and a purchase of 100 aircraft is required.

Now it only costs 100 billion US dollars to purchase 28 aircraft, which can save 7 million US dollars of precious foreign exchange.

But Zhang Nan wants to spend it all, which would allow him to order 25 more aircraft, and it is not impossible to get 30 more aircraft if he bargains for a lower price.

However, this requires instructions from above because there are considerations from above.

The above means that we can’t wait any longer. The current situation in the South has shown everyone that those who lag behind will be beaten.

It is necessary to build a large and world-class air force because the conditions exist now.

But the logistics meaning is to put one or two hundred aircraft into service first, so that they will have combat effectiveness. Most of the replacement equipment will still be reserved for the J10, after all, so much has been invested.

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The key point is that this is our own son, and the currency used is not foreign exchange.

But Lu Wu’s price was too low, which triggered a chain reaction.

Purchasing J10 does not require foreign exchange, but that does not mean that J10 does not cost foreign exchange.

Just like the current land, many core products such as engines are still not available domestically, and generally many parts still need foreign exchange to be imported.

Although the price is not as high as 2800 million US dollars, the price is not calculated in this way.

50% of Lu Wu’s shares are state-owned, which will reduce some of the expenditures and offset some of the expenses.

"Okay, do as you wish.

But if we can negotiate, we still need to lower the price, this defense department is really making money."

After a complaint, there was a busy tone on the phone.

It’s no wonder that the other party is complaining. Since Lu Wu has shares in state-owned enterprises, it is easy for him to know the costs in terms of logistics.

For the X-01M, the R&D cost is very low and the manufacturing cost is less than 2000 million US dollars.

Even if the offer price is 2800 million, you can still make 800 million US dollars for one plane.

But this money cannot be said to be expensive, because a large part of these profits will be used as research and development expenses.

No one can guarantee that the next product with huge investment will have good sales, so high profits are understandable.

It is undeniable that the comprehensive strength of Lu Wu's fighter jets is definitely among the best in the world. What does this mean? It is beneficial for export.

From a technical point of view, all related domestic products are not as competitive as Lu Wu.

Being able to open up the international market will also be beneficial domestically.

With funds, Lu Wu can invest better in research and development, which will not only improve domestic combat capabilities, but also export more equipment internationally.

In the end, half of the money earned belongs to the state. If more are sold, it is equivalent to the domestic people getting it for free.

Ultimately it is a talent issue, and China does not have a large number of talents.

This has also been noticed in China, and many companies have tried to poach people, but the results are not very good.

The reason? Money, of course there are some other reasons.

Therefore, China can dig up many former polar bear talents to work for them, but some companies and institutions in Greater China can also do so.

(End of this chapter)