Traveling through the sword to engage in military industry.

Chapter 321 Compromise with each other
After the meeting resumed, Sheng Huairen repeated his conditions.

"What? If you can't get the controlling stake, you would rather introduce diesel locomotives?" Williams frowned.

"Mr. Sheng, and all the gentlemen, you should know that your country is now an oil-poor country, and there is a shortage of diesel. For the same fuel, a ton of coal costs 15 yuan, and a ton of diesel now costs at least or yuan. Can you afford this cost?"

Williams said to the four men.

"Although the fuel cost has increased, the speed will also increase at the same time. In terms of the overall ton-kilometer or person-kilometer cost, the cost of a diesel locomotive is only slightly higher." Sheng Huairen was confident, and it was obvious that he had studied both methods and was familiar with the cost difference between the two.

"If we wait until domestic diesel locomotives mature, large-scale production will greatly reduce the cost of this diesel locomotive head."

"Besides, the maintenance cost of a diesel locomotive is much lower than that of a steam locomotive. In the long run, I believe the costs will be close. If we can't reach an agreement on the equity ratio, we would rather endure the increase in initial costs."

Williams stared at Sheng Huairen's face, as if to see that this was just a threat and not a sincere thought.

Sheng Huairen had a calm and composed look on his face.

It was as if nothing had been said just now.

"Mr. Sheng, we are talking about a $3000 million deal, not a child's temper." Williams said, "Maybe you can use E5, but why not choose E5 directly from the beginning?"

Williams couldn't see anything. "Maybe we need to take a step back. 50:50 is a good idea, isn't it? No one of us will suffer."

Half to one family does seem fair, but from a business perspective, it is a very bad idea. Many times, meetings without decisions lead to internal friction.

After all, there are too many disagreements in business.

"Mr. Williams, this is not a good idea. We are all veterans in the business world. The most taboo thing in business is a structure without decision-making power." Sheng Huairen shook his head. "We can take a step back. We want 51% control. After all, this is our territory. We have to step forward to solve many problems and we have to do the management ourselves. If we don't have decision-making power, we can't do anything."

"But as a sign of sincerity for cooperation, we are willing to distribute the dividends 50:50, half for your company and half for us! Isn't this sincere enough?"

Sheng Huairen also gave up a little bit of his profit. After all, it is true that the early cost of a steam locomotive is less than that of a diesel locomotive. A locomotive would cost hundreds of thousands more per year.

This amount of money is much higher than the extra 1% dividend given to Williams.

Williams looked disappointed as he couldn't get control.

But at this time, he really didn't have any good tricks. Now it's different from before. Foreigners have advantages in China. There are now banned lists for foreigners in many fields. The local railways can be opened now, but it is because the infrastructure is too weak and needs a lot of investment to boost it.

In addition, although the railway allows private capital to participate in operations, in fact, the train arrangements, freight pricing and other aspects are all under unified management, and local railway companies have no room for intervention. Applications can be made to open trains, but whether to approve or not is in the hands of the Railway Committee.

After arduous negotiations, the four major families and Elk finally reached an agreement.

In addition to the 60- split, Williams also added a supplementary agreement that the profit dividend for that year should not be less than %. For him, entering this market is to make money, and the investment must have a return, and it can't be too late.

In addition, in terms of loans, Williams could not accept the domestic bank interest rate and required that all the loans be solved by foreign loans. In China, a one-time investment was adopted, and then everyone would repay the foreign loans together. Because under the current conditions of Rogue Eagle, the interest rate of commercial loans is less than 3%! The interest rate of long-term government bonds abroad is only 2.1%.

Such a huge interest rate gap made it impossible for Williams to accept a loan interest rate of 25%.

Sheng Huairen and his colleagues readily accepted this condition. After all, it was a win-win for both parties. It meant that they could save about 20 million yuan in interest rates every year.

Everyone has more confidence in the profitability of this project.

In order to start the project as soon as possible, the five parties decided to invest 5 million yuan in the first year, divide the construction of the railway into multiple sections and start construction simultaneously, striving to shorten the three-year construction period to two years!
Of course, under this premise, the Big Boy steam locomotive factory was introduced and built in Jeju, striving to produce locomotives as soon as possible. By the time the railway construction was successfully completed in the second year, the production of 20 locomotives had already been completed.

Considering that the front of the car still needs to undergo necessary tests, they have spared no effort in factory investment, and are also preparing to carry out work in parallel in multiple locations, including production plant construction, equipment procurement, and worker recruitment.

Although this will cause some waste of costs, at this time, they hope to gain more time to open and make money as soon as possible.

Qilu Steel received such a large order for rail steel, which consumed more than 1 tons of its newly added production capacity. Almost all of its newly built annual production capacity of 30 tons was sold out. Railway construction, bridge construction, and large-scale factory construction have resulted in a shortage of all kinds of steel.

The tens of millions of tons of production capacity that Ren Zhong had originally planned has now been realized as scheduled. What is even more surprising is that there is not much idle steel production capacity, which was previously unimaginable. With the start of large-scale construction, the entire country seems to be like a large construction site, swallowing up the huge steel production capacity in one gulp!
This is just steel. The production of cement, asphalt, cables and other materials has also been expanded and consumed in large quantities in infrastructure construction.

If we only calculate GDP, there is no doubt that it is a rapid and leapfrog development!
The shipyard went from building 4 Dawn-class ships to 8, and then to 12 at the same time, and the time span was only a few months! The new slipway would be reduced, and then put into the increasingly mature Dawn-class ro-ro cargo ships.

Not only is the Asian shipping and global shipping business booming, domestic coastal shipping is also extremely busy. From Lingnan to the ports of Liaodong Peninsula, various transport ships come in and out almost every day. Although the Dawn-class is also among them, the number is still small now. However, the reputation of its speed and reliability is fermenting as the number of Dawn-class ships continues to increase.

If it continues to develop at this speed, by the end of 15, it will definitely create an amazing miracle!

However, something that was destined to happen happened ahead of time without Ren Zhong being mentally prepared!
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(End of this chapter)