Development of productivity started in 1981

Chapter 121 Cooperation with Jialing Factory
It was already 11 o'clock in the morning. Both Jialing Factory and Xingyao Group hoped to reach a cooperation with each other, so the negotiation scene was relatively harmonious.

The two sides first reported the conditions for cooperation to each other.

Xingyao Group mainly supplies three types of motorcycle engines and two types of CNC machine tools to Jialing Factory, among which the engines are the main ones and the machine tools are the accessories.

The prices of the three engines are RMB 650, RMB 800 and RMB 1200 respectively from low-end to high-end.

There are two types of three-axis CNC machine tools. One is the G-1 three-axis CNC machine tool modified from a recycled machine tool, with a quoted price of RMB 20 per unit.

The other is the X-1 three-axis CNC machine tool that Wang Jiankun asked Zhizi to help design, with a quoted price of RMB 40 per unit.

The model of the four-axis CNC machine tool is X-2. The price quoted by Xingyao Group is US$25 per set. This is because this machine tool comes with a tool library and a complete set of tools. A set of these tools costs US$3 when sold to customers.

The Jialing factory quoted a price of RMB 2500 per motorcycle for their upgraded mid-sized engine and reinforced frame.

The existing Jialing 50 motorcycles they sell on the market are priced at 3000 RMB, but that is the retail price after all. In fact, their ex-factory price is 2100 RMB per unit.

Wang Jiankun estimated that based on the projection of the machine tools in the Jialing Factory's production workshop, their cost should be around RMB 1200. If they replaced it with a mid-range engine from Star Group and strengthened the frame to increase the load-bearing capacity, the cost would be at most RMB 1500. So they quoted RMB 2500, with a gross profit of 67%.

So although both parties are willing to cooperate, they still have to fight for the interests that should be fought for.

The people in charge of negotiating prices at Xingyao Group were mainly Chen Xingdong and his assistants, while the people in charge of Jialing Factory were mainly their Director Tang and the deputy director in charge of purchasing.

The two sides bargained until 12:, and everyone was very hungry, so Director Tang of Jialing Factory suggested going to eat first.

So the group walked from halfway up the mountain to the canteen in the valley.

The midday sun was extremely hot, and although there were shade trees on the road, everyone was still sweating profusely.

Wang Jiankun used his superpowers to add a layer of protection for himself, reducing the amount of direct sunlight hitting his skin, so he was fine along the way and had the leisure to see the overall picture of the Jialing Factory.

It was lunch time at the Jialing Factory. The factory area was relatively quiet, but the dormitory area was bustling with people.

Wang Jiankun passed by the dormitory at that time and knew that due to the huge expansion of production capacity, many people were recruited into the factory, but the dormitory construction was not so fast. Now there were 8 people living in each dormitory, which was very crowded.

However, the mental state of these workers is still pretty good. Even the new workers who came in in the past two years are full of fighting spirit.

From the previous introduction by Director Tang and several factory leaders, Wang Jiankun knew why these workers were like this.

Most of these workers can get an apprentice salary of 36 yuan per month after pre-job training. For those with outstanding performance, if they are promoted in the semi-annual assessment and rating, their salary will be increased by 5 yuan for each level up.

This salary is very high in the southwest region. After all, the factory provides food and accommodation, as well as basic daily necessities. If you don’t spend it recklessly, you can almost save all your salary.

Moreover, there are additional subsidies for overtime work beyond the 8 hours, which is about 2 yuan per hour on average. If you work overtime for 1 hours a day, and more than 2 days a month, the subsidy will be about 20 yuan.

Therefore, these workers are very passionate and work very hard. They all hope to get high scores every month. When the time comes for evaluation and grading, the judges will also give scores based on their usual performance.

Wang Jiankun believed that this rating system was very necessary, so when he inspected Xingyao Machinery, he asked Huang Kun to promote this system.

It has now been implemented in Xingyao Machinery and Xingyao Electronics.

In the future, a series of manufacturing plants and companies that require a large number of front-line employees will have to implement this system, which will make management easier.

By implementing a rating system, employee levels will be quantified, and different salaries can be paid according to their levels. At the same time, this level also serves as a comparative reference for employees, allowing them to understand the gap and work better towards a higher level.

After arriving at the cafeteria, the group sat down on two sides. Most of the dishes had already been served. The person in charge of logistics must have received the news in advance.

After everyone sat down, the other dishes came up one after another. Wang Jiankun took a look and found that about half of the dishes were relatively light, without chili peppers, peppercorns, etc.

It seems that Jialing Factory is quite thoughtful and has prepared these dishes that suit their tastes.

Director Tang suggested drinking some wine, but Chen Xingdong refused because there were only a few of them, but there were many people at the table at Jialing Factory. How could they continue the negotiations if they were drunk?

Seeing that Chen Xingdong refused so bluntly, Director Tang did not ask anyone to serve him wine.

Since we didn't drink alcohol at noon, we ate quickly. After we finished eating and drank some tea to relieve the greasiness, we returned to the meeting room along the same route.

Continuing with the morning topic, the issue of price, the two sides bargained over each product bit by bit, and finally reached a price that both parties could accept.

The final factory prices of Xingyao Group's three engines of different grades are RMB 620, RMB 750 and RMB 1120 respectively.

G-1型数控机床的价格是18万元人民币一台，X-1型的价格是36万元人民币一台，而X-2型按照1:4的汇率换算成100万人民币一套。

If the X-2 model is converted using the official exchange rate, it should be 45 RMB, but that is impossible. Now no one is willing to trade at this exchange rate. The country can only pay directly in US dollars or gold when purchasing products from abroad, or use raw materials in exchange.

黑市上需要美金的，一般都要1:6.5甚至是1：7进行交易，所以按照1:4进行交易已经是让步很大了。

The price of Jialing 50 improved with a medium-sized engine is 2175 yuan per unit. Such a factory price should still have a gross profit of 50%.

However, this price can only be used to trade X-2 four-axis CNC machine tools. If you want to purchase additional ones at that time, you will need to calculate it according to the wholesale price of RMB 2300 per unit.

Wang Jiankun did not plan to buy a lot of these improved Jialing 50s. Although the engine had been strengthened, the design of the Jialing 50 still had many shortcomings. He did not have the energy to mass-produce motorcycles now. When his own motorcycle factory was built in the future, he would definitely produce new models.

The quantity was also discussed during the price negotiation. For low-end motorcycle engines, Jialing Factory hopes to have as many as possible, with a supply of at least 5 units per month. After the production capacity of their other parts factories is expanded, they hope to be able to supply more than 1 units per month.

However, Xingyao Power’s factory is still on the drawing board, so it is impossible to supply such a large quantity in the early stage.

Before the negotiations, Wang Jiankun told Chen Xingdong that he could promise to supply 3 units per month in the first three months, and then double the quantity every month until the factory was completed and put into production, reaching a supply of 1000 units per month.

Because he could use his superpowers to manufacture motorcycle engines in the first three months, the factory could start production from the fourth month. He would manufacture some to supplement the shortage of the factory depending on the situation. By the seventh month, the factory should be able to reach its designed production capacity.

As for mid-range engines, they are mainly used for barter in the early stage, so the total demand is planned to be 4600 units, which is just enough to exchange for 10 sets of X-2 models. The supply is 1000 units per month. If an increase is needed after the third month, an order must be placed, and the increase will take 2 months.

The mid-range 4600 engine also depends on Wang Jiankun's superpowers to manufacture, so Wang Jiankun needs to buy a lot of raw materials and spend several days to manufacture these engines. As for the high-end engine, Jialing Factory plans to see whether to order it in three months, because they need to design a new model based on the size and power of this engine, which takes some time.

As for Xingyao Group's CNC machine tools, except for the X-2 model that was exchanged for goods, of which 10 have been ordered, Jialing Factory only plans to order 10 of each of the other two models, and will decide whether to purchase more after using them for a period of time.

Wang Jiankun knew that Jialing Factory planned to buy a small amount first, and then find a domestic machine tool factory to see if it could be imitated, so that they could buy the machine tools at a cheaper price.

For now, Wang Jiankun does not have to worry about domestic imitations because the current production capacity of the domestic electronics industry is really poor.

At present, China does have 10-micron lithography machines, but they can only be used for small-batch production to manufacture chips for scientific research or military fields.

Domestic semiconductor factories do not have the capability to carry out large-scale production. Not only chip manufacturing, but also single-chip microcomputer R&D and manufacturing capabilities are lacking. There are only a handful of people in China who understand this research.

Because the commercial application of this type of large-scale integrated circuit began to develop in the United States and Europe more than 10 years ago, and Japan only began to apply it a few years ago after receiving technology transfer from the United States, and there were very few people doing research in China more than 10 years ago.

Therefore, China's current semiconductor manufacturing technology lags far behind that of Western countries. If researchers want to imitate this kind of CNC machine tool, it will take several years of research.

However, at that time, more powerful chip and integrated circuit manufacturing technologies began to be used.

Although Wang Jiankun wants to improve domestic productivity, he does not want to do so by imitating his products. Instead, he hopes to have formal cooperation and develop in a win-win manner.

After discussing the overall price and delivery quantity, both parties spent a lot of time to refine other details of the cooperation, and finally completed the negotiation before 5 pm.

The cooperation agreement reached through negotiations was printed out in triplicate. Both parties checked the terms one by one, and then Chen Xingdong and Tang Haihua signed their names on behalf of their respective companies and stamped the official seal.

The signing means that the cooperation has officially begun, but there will be a signing ceremony tomorrow morning. Director Tang plans to invite senior leaders to the scene to witness the great cooperation between their factory and Xingyao Group.

If the transaction amount of this cooperation is calculated based on the long-term transaction products for the whole year, Jialing Factory will purchase 12 engines and the transaction amount is 7440 million. This will help Jialing Factory produce 12 more motorcycles each year. Calculated at the ex-factory price, the output value will increase by 2.4 million.

At the same time, this will also break the supply gap of key components and no longer be restricted by several other domestic equipment manufacturers.

Because the CNC machine tools they purchased not only have high precision but also high production efficiency, they will be used to produce gearboxes and several other parts that require high precision. At the same time, they will also improve their own production equipment and improve the production efficiency of the entire factory.

According to the optimistic estimate of the technical staff, Director Tang believes that starting from January next year, their factory will be able to produce 1 motorcycles. Moreover, if more CNC machine tools can be introduced, the production capacity may continue to increase.

After the cooperation is reached, of course we have to drink to celebrate.

At the dinner table that night, Wang Jiankun had to use his superpowers to help the people accompanying him sober up, otherwise he would be beaten by these military cadres in turn and would not be able to get out of bed the next day.

At the end of the banquet, Director Tang was still expressing his feelings, saying that the Xingyao Group not only had strong technology, but was also good at drinking. Including the security personnel, all of them could drink a lot. They actually got 12 out of the 4 of them drunk, while they themselves were all sober.

In fact, Chen Xingdong and others were quite puzzled. They felt it was strange that he drank alcohol when he came yesterday, because he and his assistant could only drink less than one kilogram of alcohol. They drank almost two kilograms last night, but they were still able to stay sober.

He also attributed it to the fact that the wine they drank later might have a lower alcohol content, and Jialing Factory gave them low-alcohol wine considering their situation.

But today, with the help of Wang Jiankun's superpowers, they actually drank almost 3 kilograms of liquor and were still able to stay sober and not vomit. This created an illusion that their alcohol tolerance had increased.

However, except for Wang Jiankun, although the minds of the others were still clear, they could no longer control their bodies and walked staggeringly.

In fact, Wang Jiankun also has the ability to help them lower the alcohol concentration in their blood, but he doesn't want them to discover more abnormalities. This state should be just right. It would be fine if they could return to normal after a good night's sleep and wake up tomorrow.

Director Tang and several key leaders were actually drunk, and they were only able to stay sober with the help of a few low-level people who helped them block the attacks from the Starry Group.

After forcing themselves to cheer up and arrange for the Starry Group and others to return to the guesthouse to rest, they returned to their respective homes with the help of others to rest.

The cooperation signing ceremony was held at 7 a.m. on July 14. People from Jialing Factory invited their direct superiors, as well as the city leaders and leaders of several cooperative units.

Although the Jialing Factory switched to producing civilian products, its direct superior was still the Army Logistics Department, so the leader who came was still a major.

Perhaps it is because Jialing Factory will be able to bring more profits to the army, which is currently in urgent need of funds, so the importance attached to Jialing Factory and this cooperation can be seen from the leadership level.

Before the signing ceremony began, General Zhang also had a private conversation with several people from the Xingyao Group, saying that they were patriotic Hong Kong businessmen and hoped that they could provide more support for the development of the motherland, etc.

Chen Xingdong had never thought that he would be able to meet the head of the country and have a direct conversation with him in his lifetime, so he was very excited throughout the whole process and expressed that he would definitely invest heavily in the motherland.

Jialing Factory prepared a lot for this signing ceremony. Although time was tight, it was still very grand. A TV station was also invited to follow and record the ceremony.

Although CQ City does not share in the profits of Jialing Factory, most of the workers recruited by Jialing Factory are still from the city. After this cooperation is reached, large-scale recruitment will be carried out. Not only will it solve the employment of many people, but it will also promote the development of the local economy, because these workers will still spend money in the city after receiving their monthly wages.

Therefore, the leadership level from the city was also very high. The mayor came in person and expressed his support for this cooperation during his speech.

After the ceremony, the mayor also sought out Chen Xingdong for a talk, hoping that he would come to Chongqing to invest.

Of course, Chen Xingdong also took the opportunity to state that after the cooperation had been going smoothly for a period of time, he would lead a team to inspect again. He hoped that the city would be able to give corresponding policies at that time to see if he could buy land here and invest in building a power equipment manufacturing plant specializing in the production of various engines.

The city leaders did not expect such a big gain, and they immediately stated that they would definitely solve the policy problem, allowing them to make plans to invest and build a factory here with confidence.

Before coming here, Wang Jiankun discussed with Chen Xingdong whether to build a factory here. The final conclusion was that if the policy here allows wholly-owned Hong Kong-owned factories, then they should consider building a factory here that mainly manufactures engines.

Because there are many third-line factories here, there is no shortage of workers. Now these third-line factories are generally under-utilized, so it will be easy to recruit some qualified workers at that time.

Moreover, driven by the Jialing factory, the motorcycle industry here will see the emergence of a large number of other companies producing motorcycles. Therefore, building a factory here that mainly produces engines will not be a problem with product sales.

After the signing ceremony, Jialing Factory prepared a sumptuous lunch and invited those who attended the ceremony to have a meal together.

However, there was no drinking contest at the lunch table. On the one hand, there were higher-level leaders present, and on the other hand, the people at Jialing Factory were scared by the previous two drinking contests.
After lunch, Chen Xingdong took his assistant and two bodyguards with the guide sent by the city to inspect, while Wang Jiankun drove the boat away from the Jialing Factory's dock and headed for Chaotianmen Wharf.

He wants to conduct an investigation in Chongqing and also set up a mobile base station so that the delivery personnel here can contact the Xingyao headquarters at any time in the future, and it will also be convenient for the headquarters to manage these transportation personnel.

(End of this chapter)