In 1978, I was admitted to Harbin Institute of Technology

Chapter 229 Huge Military Sales Order: Jiangbei Machinery Factory Panicked Before Signing Contract

Principal Li had only planted a small seed in the hearts of Imohan, Murita, and others, but he never expected that the seed would take root and sprout so quickly in such a short time.

Compared to Thailand, which, while not very wealthy, also doesn't have high demands, cooperation with Pakistan isn't as urgent for Principal Li.

Of course, Principal Li was pleased that the matter could be resolved before he was completely removed from his position as principal.

Upon arriving in the capital, various parties gave reports and held meetings.

The news that the ministry had secured export orders worth nearly $600 million quickly reached the ears of the factory leaders who had been waiting for projects and funding at the headquarters of the Seventh Ministry of Machinery Industry.

Therefore, the person in charge of the relevant production factory went directly to the minister's office.

“Minister, we are a factory that produces rockets. Although we haven’t produced rocket launchers before, we can start producing them with just a few modifications to the production line…”

"This project is best suited for us; our factory specializes in producing all types of rocket launchers..."

……

The numerous leaders who were waiting for projects and funding were well-informed and gathered directly in the minister's office.

"Everyone, the business was negotiated by Harbin Institute of Technology. The precision machinery company that the ministry acts as an import and export agent for is only helping them export. If you want to get the production technology, you have to go to the person in charge at Harbin Institute of Technology!"

Minister Zheng rubbed his throbbing temples.

He had a real headache dealing with the leaders in his subordinate units who demanded projects and funding.

The ministry has cut many projects, and many units also need to upgrade their technology.

However, government funding has decreased significantly.

The units where these leaders are allowed to enter their offices were all originally key units. It was only because of reforms and cuts in military spending that the country's orders for military production were significantly reduced, leading to a large-scale idle of production capacity.

Developing a new product?
It costs money.

Upgrade production lines and technology?
It costs money.

"By the way, don't count on this project either. Jiangbei Machinery Factory already reached a cooperation agreement with Harbin Institute of Technology, with Harbin Institute of Technology responsible for technology research and development, and Jiangbei Machinery Factory responsible for production..."

Suddenly, Minister Zheng remembered that the leaders of Jiangbei Machinery Factory had come to see him before, and later reached a cooperation agreement with Harbin Institute of Technology.

"what?"

Everyone was immediately disappointed upon hearing this.

If Jiangbei Machinery Factory really reaches a cooperation agreement with Harbin Institute of Technology, no matter how much they try to persuade them, it will be useless.

After finally getting rid of the group of subordinates who wanted funding and projects, Minister Zheng called his secretary in to inquire about the cooperation between Jiangbei Machinery Factory and Harbin Institute of Technology.

The secretary shook her head, indicating she didn't know.

Jiangbei Machinery Factory has not reported any progress, and Li Rui rarely comes to the ministry now, making it even more difficult to obtain information.

"Call Jiangbei Machinery Factory and tell them to prepare for production. The contract will be signed soon, as the Thai side is in a hurry."

Minister Zheng didn't think much of it.

"Sir, they've reached a cooperation agreement with Harbin Institute of Technology. With such a large order, they should have known about it immediately, right?"

The secretary was puzzled.

Even if Jiangbei Machinery Factory was not involved in the negotiations, as a partner, Harbin Institute of Technology would have informed them immediately.

"Let's call and ask."

Minister Zheng said softly, "There might be some problems in the middle, otherwise Ning Juntao from Jiangbei Machinery Factory would have come to report this long ago."

The secretary was taken aback, but then understood.

He turned around and called Jiangbei Machinery Factory.

"What? Harbin Institute of Technology has already secured a $440 million export order for disposable rocket launchers, and there are at least several million more orders under negotiation?"

Conference room at Jiangbei Machinery Factory.

Many leading cadres were excited when they heard the news from Ning Juntao.

440 million!
Forex!

With such large-scale production, the entire Jiangbei Machinery Factory not only has idle capacity, but also needs to add more production lines.

"Factory manager, didn't we already agree on a collaboration with Harbin Institute of Technology? Why didn't they notify us?"

Unlike most people's excitement, Chief Dispatcher Ma Yuan sensed the factory director's worry.

For such a large order, Harbin Institute of Technology did not notify its partners to participate or prepare production materials in advance before signing the contract.

It's so abnormal.

"Ladies and gentlemen, although we have reached an agreement with Harbin Institute of Technology, we have not yet signed a cooperation contract..."

Ning Juntao glanced at everyone before telling them the truth with a wry smile.

"what?"

The smiles on the faces of the excited leaders instantly froze.

They thought the factory manager had called a meeting to arrange production and prepare for a big push.

result!

No contract was signed!

The duck that reached the beak flew away.

Jiangbei Machinery Factory is not the only manufacturer of rocket launchers in China. There are several professional manufacturers, and some factories also have the capability to produce rocket launchers.

"Factory manager, didn't we even send technical personnel over?"

Chief Engineer Tian Guirong asked doubtfully, "Even if there was no signed contract, the details of the cooperation had been agreed upon beforehand. They wouldn't violate the contract by handing over production to other factories, would they?"

"Yes, the cooperation has been agreed upon, but the contract hasn't been signed yet..."

Many people expressed their incomprehension.

Hearing these words, Ning Juntao's face was full of bitterness.

It's all his fault, along with several deputy factory directors. They originally planned to wait until they had enough military orders, and then use those orders to get a bank loan to pay the 200 million yuan technical data sharing fee required by Harbin Institute of Technology.

They all felt that Harbin Institute of Technology was asking for too much.

Not only did they pay a cooperation fee of 200 million yuan upfront, but they also had to give Harbin Institute of Technology 30% of the cost of the produced rocket launchers, based on the factory price.

Jiangbei Factory, unaware of the true production costs and without orders, naturally did not want to take any risks.

The 200 million was paid upfront, but then there were no orders?
Because of this, the contract has been delayed in being signed.

Harbin Institute of Technology initially urged them to do so, but later stopped mentioning it altogether.

"According to information from the ministry, the rocket launchers Thailand purchased cost $1200 and $800 respectively. We don't yet know their production costs, nor their profit margins... and they've asked for a 200 million yuan 'joining fee'..."

"too dark!"

"Given their terms, even if we cooperate, we might actually lose money!"

"Even if they don't lose money, they'll probably take the lion's share of the profits..."

The crowd immediately became excited.

Although it was developed by Harbin Institute of Technology, Jiangbei Machinery Factory was responsible for all production, so shouldn't it take the lion's share?
If you only provide the technology, take 30% of the ex-factory price, and deduct all other costs, what profit can the Jiangbei factory make?
"Bang bang bang~"

Seeing that everyone was getting more and more excited, Ning Juntao had no choice but to slap the conference table with his palm.

"Everyone, the reason I've called this meeting isn't to condemn Harbin Institute of Technology. Since there's no contract, given their usual practices, it's highly likely they'll raise the membership fee this time, and even take a larger share of the profits..."

"what?"

Everyone was dumbfounded.

They all thought the previous allocation plan was extremely harsh, but now the factory manager says the conditions will be increased?
How can I accept this!

"Although it sounds harsh, as everyone knows, the factory was originally planning to apply for the disposable rocket launcher project, but..."

Ning Juntao's words forced everyone to face reality: Jiangbei Factory had no choice!

In cooperation negotiations, they have no advantage whatsoever.

Cooperation would not only allow the Jiangbei plant to utilize its idle capacity for production, but also enable technological upgrades. Not cooperating?
Other factories with production capacity will definitely lower their requirements to cooperate with Harbin Institute of Technology.

Only through production can one survive.

Only by surviving can we have more opportunities.

……

Neither the capital nor the Jiangbei Machinery Factory affected Xie Wei and the others who returned to school.

"Don't think about those irrelevant things. We're just doing technical work, focusing our efforts on technological improvements, designing more weapons and equipment, and contributing to the modernization of national defense. Production will be taken care of by others. I won't be providing you with any other solutions later..."

When Tang Daoxian asked why there was still no progress from Jiangbei Machinery Factory, Xie Wei, displaying his authority as a squad leader, reprimanded him with a stern face.

The design schemes and overall schemes for the previous models were all provided by Xie Wei.

However, the implementation of these designs was carried out by Tang Daoxian, Zhai Xinguo, and others.

“Squad leader, I was thinking that Jiangbei Machinery Factory has reached a cooperation agreement with the school, so our project can get more experienced people from there.”

Tang Daoxian looked aggrieved.

The school does not have a dedicated weapons design major, and there is no indication that it will establish one in the near future.

The sniper grenade launcher still needs further improvement, including increasing its range, accuracy, and even kill radius.

Rocket launchers also need improvement, and other types of ammunition need to be developed.

They all need people.

With the current manpower available for the project, it's simply not enough.

"For the manpower issue, ask the school."

Without a second thought, Xie Wei bluntly stated, "The technical staff at Jiangbei Machinery Factory may not meet our expectations. Besides, with so many people, will the design studio and office space be sufficient?"

"Uh~"

Tang Daoxian fell silent instantly.

The school is now facing a shortage of classrooms and offices. Not only are there new majors offered every year, but the enrollment scale is also constantly expanding. Some projects run by the school and enterprises are also growing stronger.

Even with a large number of orders, sniper grenades and rocket launchers are still not in high demand at the school.

This was Zhai Xinguo's test.

In terms of military projects, the school's classified projects are far superior to rocket launchers and sniper grenades.

In terms of civilian technology, the integrated circuits, chemical products, and computers under the university-enterprise office are all developing and growing rapidly.

"Tell Professor Zhai not to worry. With orders secured, funding for your project and related projects will definitely be prioritized. The university is unlikely to abandon ongoing research on projects with a solid foundation."

Xie Wei sighed.

The leaders, professors, and associate professors at Harbin Institute of Technology are all incredibly shrewd and capable individuals.

"Military projects are not under the jurisdiction of the university's enterprise office. We put in both effort and money, but we don't get any benefits!"

After Tang Daoxian left, Wang Zheng complained to Xie Wei.

The funding for rocket launchers and sniper grenades was mostly provided by the school-enterprise cooperation office.

Now things are much better. From Thailand alone, there are orders worth over $600 million, which is nearly 1000 million RMB.

The school-enterprise cooperation office didn't get a single penny.

"What do you mean there's no benefit? Even though the school-enterprise cooperation office doesn't interfere in this business, does that mean the investment is just going to go down the drain? The school-enterprise cooperation office operates independently. Whoever takes over will not only need to make up for the missing funds, but also pay some interest. Otherwise, the school-enterprise cooperation office won't invest in these projects again..."

Xie Wei raised an eyebrow and stared at Wang Zheng.

Wang Zheng was embarrassed when Xie Wei discovered his thoughts and could only pretend to drink tea.

"Although the School-Enterprise Cooperation Office belongs to the school, it is independently accounted for. How could that shameless old man Li have proposed this?"

After giving Wang Zheng a warning, Xie Wei asked a question.

"No~"

Wang Zheng quickly denied it.

Seeing Wang Zheng deny it, Xie Wei didn't say anything, but just stared at him with a playful expression.

Based on his understanding of Wang Zheng, he knew Wang Zheng would never bring this up.

"It was Principal Zhang and Secretary Liu. The funding needs for the fighter jet project are getting bigger and bigger, and the school's funds can't keep up. Currently, many research projects have been affected... They didn't say that the money should be given to the school, but just asked if the money could be borrowed from the school-enterprise office first."

Under Xie Wei's gaze, Wang Zheng was defeated.

Xie Wei was somewhat surprised.

Zhang Mingqiu and Liu Debao are different from Li Rui.

Seeing Xie Wei remain silent, Wang Zheng couldn't guess what he was thinking and was afraid Xie Wei would get angry, so he hurriedly explained, "The loans from the school-enterprise cooperation office haven't matured yet, the switch business has exceeded expectations, and the account balance has increased by tens of millions..."

"It can be lent to the school, but the interest rate will be calculated according to the bank's rates."

"what?"

Xie Wei's answer was something Wang Zheng never expected.

Isn't it normal for subordinate units to hand over profits to their superiors?

Xie Wei's proposed solution had no precedent whatsoever.

"They agreed to lend the school 800 million yuan of the surplus funds in the account first. Otherwise, they would increase the research funding for existing projects of the university-enterprise cooperation."

Xie Wei did not explain why to Wang Zheng.

Let Wang Zheng figure it out himself.

Xie Wei had previously suggested to Zhang Mingqiu that since the school was short of funds, they could take out a loan from the bank first.

If interest isn't paid, the independence Xie Wei secured from Li Rui will become meaningless, and the entire school-enterprise office will easily become the school's money bag, making any further development impossible.

So far, Xie Wei doesn't know how many hidden projects the school has; the few he does know are all money-devouring monsters.

The military wants to put some projects in schools, but doesn't provide research funding or orders. How can that be acceptable?

"You're really wronging the military commander. Although the military is poor, they still provided funding for some projects. Even the rocket launchers were funded by both the ministry and the military, although the military only contributed 80 yuan..."

Zhang Mingqiu became anxious when Xie Wei mentioned that the school-enterprise cooperation office could lend money to the school, but would charge interest.

He took the initiative to come and find Xie Wei.

When Xie Wei complained that the school's military projects were taking up too much funding and that it was difficult to see results in the short term, Zhang Mingqiu had no choice but to tell Xie Wei the truth.

"Where's the money?"

"It was misappropriated by Principal Li. This year alone, the four technical projects of the fighter jet project each received 200 million, which is 800 million... You know, for such high technical standards, 200 million is like throwing it into water, not even making a ripple."

Zhang Mingqiu looked at Xie Wei with a bitter expression.

He did not blame Xie Wei.

If Xie Wei hadn't made that reckless suggestion, Principal Li wouldn't have forced the implementation of the preliminary technology project for third-generation fighter jets at the school.
Without the fighter jet project, the school's finances wouldn't have deteriorated to such a degree.

"Uh~"

Although Zhang Mingqiu didn't mention himself, Xie Wei could hear the resentment in his words.

It seems, it appears, that it was because of me that Old Man Li insisted on pursuing the fighter jet project...

This matter...

"Principal, the School-Enterprise Cooperation Office must always maintain independent operation and independent accounting. The profits handed over to the school can increase, but money cannot be directly diverted from the School-Enterprise Cooperation Office. Otherwise, the school will have to borrow money from the School-Enterprise Cooperation Office in the future..."

The other party remained silent about Xie Wei's initial role in promoting the fighter jet project, which made Xie Wei extremely embarrassed.

Left with no other option, we had to propose once again that the school-enterprise cooperation office increase the profits it submits to the school.

"How much?"

(End of this chapter)