Return to 1958 and build a century-old giant

Chapter 823 Planning a Mini Car
A few days later, on June 2nd, at the Kang Le Building:

Upon learning that he had successfully acquired the Dudley family's shares, Yang Wendong smiled and said, "Very good, then let's prepare to officially announce this."

Although Hong Kong and China Gas is a declining company, it is still a public monopoly and a listed company, so the handover of management rights must be announced.
“Okay, I will hold a press conference.” Fang Xianming then asked, “So, who will be in charge of managing China Gas going forward?”

Yang Wendong thought for a moment and said, "Let's find suitable people from within China Gas, whether they are Chinese or British. The original team doesn't need to be changed; we can keep it as it is for now. Then we can arrange for our people or the Chinese people within the company to gradually get to know each other."

Apart from the Dudley family, the other management team members did not leave, so Yang Wendong simply let them continue to run the business. This is a highly professional organization, and his people might not be able to manage it, at least not at the moment.

“That’s one approach,” Fang Xianming nodded, then asked, “So, what major actions do we need to take afterward? For example, laying natural gas pipelines or building natural gas receiving ports?”

Acquiring Hong Kong and China Gas is a small matter, but laying natural gas pipelines throughout Hong Kong is a super-large project that would cost billions of dollars. Even selling Hong Kong and China Gas ten times wouldn't be enough.

“That won’t work for now. Global natural gas transportation is also a problem.” Yang Wendong thought for a moment and said, “How about this, let’s negotiate with China Resources and see if we can send some liquefied natural gas from Guangdong Province in mainland China first. We can try it out in Hong Kong first and see the market feedback.”

Although Hong Kong will inevitably use natural gas in the future, it is estimated that it is not possible now. If the time is not right, then investing now will definitely result in huge losses.

Just like the high-speed rail in the past, if the mainland has the technology now, building a high-speed rail line would be a waste of time because not many people can afford to use it. Only when the economy reaches a certain level will the supporting infrastructure be meaningful.

Historically, Hong Kong's initial use of natural gas was in the early 80s, with liquefied LNG purchased from Guangdong Province for vehicles. Large-scale adoption began in the 90s.
He certainly can't forcefully expand the market ahead of time, nor does it meet market demand. Natural gas is different from oil and coal; it's gaseous and very difficult to transport. Without sufficient quantities for unified sea or pipeline transportation, he could go bankrupt.

However, using a small container allows you to test the water first, so even if you lose money, it won't have a significant impact.

“Okay, I’ll contact Zeng Sheng,” Fang Xianming replied.
Yang Wendong said, "Okay, let's do it this way then. I'll communicate with China Gas after they select a suitable management team."

"We won't be investing in natural gas in the short term, but I'm still planning to try and expand into the inland gas business. We'll see if there are any opportunities later."

In this era, the energy sector in mainland China is not entirely without opportunities. For example, power plants, oil refineries, and gas stations will be gradually opened to foreign investment in the future. It was not until after the early 0s, when domestic energy began to be monopolized, that the sector was gradually taken back.

But that only applies to oil. As for businesses such as coal, liquefied gas, and natural gas, private capital and foreign investment can participate to some extent. However, Yang Wendong is not clear about the specifics. He had not paid attention to these things in his previous life. He only knew that there were private gas stations when he was a child. Moreover, foreign investment is absolutely allowed to participate in natural gas.

That alone is enough for me to acquire Hong Kong and China Gas Company Limited, and in the future, I can participate in related industries in China.
The following day, Hong Kong newspapers officially announced that Cheung Hing Group had acquired Hong Kong and China Gas, obtaining a 49.9% stake. As for how much money was spent, that was unclear.

When the news broke, Hong Kong and China Gas's stock price immediately surged, attracting a lot of capital. The market clearly believed that Yang Wendong's acquisition of this declining company must have some ulterior motive.
A few days later, Hong Kong and China Gas elected a new head manager, who was also a foreigner named Ted.

There was no other way; before this, the middle and senior management of Hong Kong and China Gas were almost all foreigners, and the Chinese were just doing manual labor. There was no way to let the Chinese team take over now.

Yang Wendong didn't care about this. He only had one requirement: as long as the new foreign bosses didn't want to leave Hong Kong and could work for him in Hong Kong without worry, whether they were Chinese or foreigners, as long as they worked hard for him.
"Hello, Mr. Yang." Ted met Yang Wendong under the guidance of Fang Xianming.

"Have a seat," Yang Wendong waved his hand. "I've looked at your resume; it's very good. What are your thoughts on your future job?"

Ted was also prepared: "Mr. Yang, in the future, I will continue to promote production improvements in liquefied gas to reduce costs and lower prices, so as to better serve the people of Hong Kong."
I know there's a new technology in the US that can reduce the CO content in coal gas and increase combustion efficiency, and I plan to import that technology.

"Approximately what's the price?" Yang Wendong asked.

Ted said, "It will probably cost around ten million Hong Kong dollars. This is not a set of equipment, but rather an improvement to our existing equipment."

“Okay, I support that,” Yang Wendong said, not caring about the money. “The gas cylinders you use are imported from overseas, right?”

Ted said, "Yes, originally they were imported from the UK, then from Japan, and recently we've been considering importing from Taiwan. Also, the gas cylinders in the market are recycled, but if they expire or are damaged, they still need to be scrapped and new ones bought."

“Yes, safety is of paramount importance. However, have you considered manufacturing in Hong Kong?” Yang Wendong countered. “Changxing Industrial also uses sheet metal to produce containers. We have a similar steel industry and can produce them ourselves. The cost of shipping these empty containers by sea is not low, is it?”

For sea freight, sometimes it's not that the heavier the cargo, the more expensive it is; on the contrary, the larger the cargo, the more expensive it is. Whether it was the era of mixed transport or the era of container transport, goods with low average density will inevitably incur high transportation costs.
Although the tank is made of iron, the inside is hollow, which naturally results in high transportation costs.

Ted said: "Yes, shipping was very expensive a few years ago. The cost of transporting the tanks was higher than the purchase price, but we had no choice before."
As for Cheung Hing Industrial, we haven't considered it either, because when Mr. Du Dewei was in office, he didn't have much faith in Hong Kong's industrial technology.

“Hong Kong’s industrial technology is indeed not as good as Japan’s, especially in heavy industry.” Yang Wendong nodded and said, “But we have to try. Go and ask Chang Hing Industrial if we can produce it ourselves.”
If not, then so be it. If they can, tell them they need to be careful and do various tests; this is something that cannot be taken lightly.

Gas cylinders are like small cannonballs, so you have to be careful.
But Yang Wendong still decided to let his company give it a try. If it succeeded in Hong Kong, it could still be exported. There was a lot of demand for this stuff in the Middle East and Africa, and it might even be able to participate in the domestic business in the future. This was a huge market.

Furthermore, if this small tank is successful, it will also have the opportunity to enter other tank industries, which represent a huge market both domestically and overseas.

“Yes, Mr. Yang,” Ted replied.
Yang Wendong said, "In addition, you also need to negotiate with the mainland about the import of natural gas. Fang Sheng will introduce you to the person in charge of China Resources, and you will be responsible for following up on the matter." Ted said, "Understood."

At present, Hong Kong and China Gas is not yet able to expand its scale significantly; maintaining its existing business is sufficient.

Although wealthy people in Hong Kong now use electricity instead of gas to avoid risks, most households still use gas to save costs.
In terms of safety, Hong Kong and China Gas has been operating for a century and has had some incidents, but these are generally caused by users' lack of caution.

This isn't a big deal, and Yang Wendong won't pay too much attention to it. He can get involved when he's able to expand into the mainland.
However, another major event occurred, but not in Hong Kong, but in Britain;

Last month, the race for the British prime minister was resolved, with Thatcher successfully becoming the prime minister and taking office at the end of the month. This also signifies that Yang Wendong's political investment in her in his early years can be considered a success.

On June 15, Yang Wendong boarded a plane and traveled to the UK;

The primary objective, of course, was to meet with Thatcher;

This was also Yang Wendong's first time visiting Buckingham Palace, the political center of the British Empire and the former location of the pinnacle of global power, only now that it had been taken over by the White House.

However, this meeting was private and there were no reporters present. In fact, any business or political meeting that involves reporters is just a pre-arranged meeting with content that is ultimately presented to the media.

"Congratulations, Madam Prime Minister," Yang Wendong said politely.

Thatcher smiled and said, "Thank you, Eric. I also want to thank you for your support over the years."

“It is my honor,” Yang Wendong continued.

After exchanging pleasantries, the two quickly got down to business. Thatcher said, "Eric, I hope your company can make a larger-scale investment in Britain."

"How large-scale investment do you mean?" Yang Wendong asked rhetorically. He was prepared for this, since these politicians, especially prime ministers, met with him to seek investment.

Thatcher said, "I know that your company has many manufacturing businesses and more than 100,000 employees in Asia. I hope that you can relocate some of them here and bring 20,000 jobs to the UK."

"Twenty thousand people? That's no small number." Yang Wendong didn't refuse outright. This wasn't a business meeting, so even if he disagreed, it wouldn't be appropriate to refuse directly.

The UK currently has a total population of approximately 5600 million, but its labor force is around 2700 million. With only 2 employed, that's a mere 0.1% employment rate.
Although 0.1% may seem like a small figure, as employment data, an increase of 0.1% is actually a very good achievement.
Moreover, this only represents direct employment. If Yang Wendong really invests in creating 2 jobs in the UK, the number of jobs indirectly created will definitely increase several times over.
This alone would probably have given Thatcher a very good political record in the early days of her premiership.

This is also why big capitalists and entrepreneurs are welcomed and have great influence in countries around the world. A single decision can truly affect tens of thousands of people, as well as the political performance of a country's prime minister or chancellor.

However, Yang Wendong was not stupid. This request was quite high, and he would not agree unless the other party paid the same price.

Thatcher nodded and said, "Indeed, that would be a large number, but I have also done my research. Your company's products are sold in the global market. Although Asia is suitable for manufacturing, the transportation costs for some products are still very high, especially in the current oil crisis and with soaring oil prices."

Your main markets are still Europe and America. It's not necessarily unprofitable to shift some of your production to those regions. For example, in the UK, you can easily and cost-effectively ship to inland Europe and the eastern United States, right?

Yang Wendong laughed and said, "The Prime Minister is right on that point, but wouldn't it be more convenient if I located the factories in Europe and the United States? It's not like we can only build one factory in Europe, right?"

Thatcher said, "That's right, it's up to you to choose. I still hope you can invest in Britain, and I will guarantee you the best preferential policies."

Currently, the UK faces a severe employment problem, the oil crisis has also severely impacted the British economy, and the UK is also lagging behind in various manufacturing technologies.

“The relocation of Asian manufacturing is a long-term issue and is unlikely to be decided in a short time. From a manufacturing perspective, it generally moves from developed countries to developing countries. British workers cannot withstand the workload of Asian workers.” Yang Wendong paused and said, “However, if the goal is simply to bring manufacturing jobs to the UK, there are other ways.”

He has some factories in the UK, also for political purposes. From an economic perspective, they are not as profitable as those in Asia. However, because they are based in Europe and America, they can often play a role in emergency relief. Or, during the current oil crisis, some industries may be more profitable in the UK.
But after all, the oil crisis is temporary. He also knows that after this oil crisis, oil prices will not be high for the next ten or twenty years. In addition, with the reform and opening up of China, the manufacturing industry in Europe and the United States will inevitably fall to the bottom. Except for a few industries, the rest will definitely get worse and worse.
Asking him to transfer a small portion of his Asian industries over here might have been considered ten years ago for political purposes, but now it's absolutely impossible.

"What method?" Thatcher asked.

Yang Wendong said, "I want to acquire a factory in the UK that is about to go bankrupt. If I can save it, it can create jobs for thousands of people."

Thatcher asked, 'Which factory?'

“Mini car,” Yang Wendong replied.

PS: Please give me a monthly ticket
(End of this chapter)