In 1978, I was admitted to Harbin Institute of Technology

Chapter 278: Factories that receive production orders from Harbin Institute of Technology must first become users of Harbin Institute of Technology's technology products!

"Boss, is this why Secretary Liu Debao refused to give us more orders?"

Zhao Yan was somewhat unwilling, "Their CNC system is really no good. It can't be used for precision machining at all. What we need is a CNC machining center for precision machining of large, irregularly shaped parts..."

Zhao Yan felt that they couldn't be blamed for this.

For aerospace products, the machining capabilities of CNC machine tools are beyond question.

The problem is that what the aerospace industry needs most is CNC machine tools. The more advanced they are, the better the processing quality can be guaranteed. Although the first batch of CNC machine tools purchased by the ministry from Mitsubishi was small, as a core and key enterprise of the entire Seventh Ministry of Machinery Industry, we were allocated two machines!
Having found something better, the staff from Hongguang Machinery Factory, who came to their door to sell, naturally wouldn't have a very friendly attitude.

"No. Comrade Debao didn't mention it."

Minister Zheng shook his head.

He learned about the situation through Li Ruicai.

Liu Debao just explained why Harbin Institute of Technology did not allocate more rocket production orders to Changzheng Machinery Plant. On the one hand, it was to avoid crowding out the production tasks of Changzheng rockets and Dongfeng rockets; on the other hand, it involved confidentiality issues; and the mountainous area where Changzheng Machinery Plant is currently located is not conducive to the expansion of factory buildings and production capacity.

"Then~"

Zhao Yan was somewhat displeased.

“Sir, we are a key core unit of the ministry, with the best staff and equipment… We can’t just waste limited funds because we’re a unit in the same system and need support, can we? That wouldn’t be good for our future development…”

Fan Zhiyong directly expressed his dissatisfaction.

In his view, one thing should be considered separately.

In particular, despite such a huge order from Harbin Institute of Technology, they were only given the right to produce 2500 rockets.

They completely disregarded the fact that we're all part of the same system.

"Is it detrimental to future development? Don't they need to recoup their R&D investment? Compared to imported CNC machine tools, Harbin Institute of Technology's system is indeed inferior, but they are still continuously developing it... Besides, these CNC systems, when used to modify ordinary machine tools for roughing and semi-machining, are much more efficient than ordinary machine tools, right?"

Minister Zheng's expression darkened further upon hearing Fan Zhiyong's words.

The higher-level authorities do not interfere with the procurement of advanced equipment by various units.

Although Liu Debao didn't say it, and Li Rui only mentioned it "unintentionally," Minister Zheng felt that both Li Rui and Liu Debao were already very unhappy.

The aerospace system needs a large number of CNC machine tools to upgrade its manufacturing capabilities, and the same applies to low- and mid-range machine tools.

Minister Zheng was very dissatisfied with the attitudes of Fan Zhiyong and Zhao Yan.

The technology that Harbin Institute of Technology (HIT) developed with its own funds needed to be recouped through the market for further research. However, the Changzheng Machinery Factory, which was in the same unit, not only did not support it, but also demanded a larger share of the profits from others, citing the fact that they were part of the same system.

How can we not disappoint?
Previously, the ministry purchased a batch of CNC systems from Harbin Institute of Technology for the purpose of upgrading ordinary machine tools, but Changzheng Machinery Factory refused to accept the batch of CNC systems and related parts intended for the upgrades...

If the Changzheng Factory weren't so important, Harbin Institute of Technology probably wouldn't have agreed to provide the production capacity for the current 2500 rockets.

"You can figure this out yourselves. I have other things to do, so I won't keep you any longer."

Without saying much, he directly ordered the two to leave.

Left with no other option, the two had to say goodbye and leave.

"Ah~"

Minister Zheng sighed as he watched the two walk away, glancing back repeatedly.

The policies that Harbin Institute of Technology initially requested from Minister Song have yielded increasingly fruitful results, which has led many other units within the same system to try and take advantage of the situation through various means, putting considerable pressure on him as the supervising leader.

Regardless, he had no intention of pressuring Harbin Institute of Technology to allocate more orders to units within the Seventh Ministry of Machinery Industry.

Cooperation requires a win-win situation.

Harbin Institute of Technology (HIT) has more than just CNC systems and technology; it also has program-controlled exchanges. The telephone system of the entire 062 base is not a small business, and choosing a program-controlled exchange developed by HIT is the most suitable option.

Neither the leaders of Changzheng Machinery Plant nor the leaders of Base 062 mentioned it.

However, some people are preparing to import program-controlled exchanges to upgrade the entire internal communication network of 062.

"Factory manager, the CNC system at Hongguang Machinery Factory can only be used to improve ordinary machine tools. It doesn't significantly enhance the factory's high-end machining capabilities. Even the large gantry milling machines and boring machines we need can't be handled by their system..."

After coming out, Fan Zhiyong complained.

He was afraid that the factory manager might actually choose to buy the CNC system from Hongguang Factory in order to get more orders.

"Let's see. Harbin Institute of Technology didn't mention this when they discussed cooperation with us..."

Minister Zheng's personal reminder made Zhao Yan realize that the problem was definitely not as simple as it seemed on the surface.

What else could it be? Zhao Yan couldn't figure it out for a while.

The superior reminded us that even if the other party's product is indeed not suitable for the factory's development, we still need to have a detailed understanding and provide reasons that can convince the superior.

"We won't be back for another two days. Let's meet up with Secretary Liu later, treat him to drinks, and also find out what products Harbin Institute of Technology has..."

Fan Zhiyong wanted to object, but seeing the factory director's firm attitude, he did not voice his objections.

······
"Comrade Debao, what brings you here?"

Li Rui's current office is located in a large compound allocated by the military. There are guards standing at the gate, but no sign is posted.

He was surprised by Liu Debao's arrival.

"Director Sun said that the guesthouse is not suitable for discussing cooperation, and the school does not have an office here, so we thought we would trouble you!"

Liu Debao said with a smile.

Jiangshan Machinery Factory got in touch with Liu Debao through the leadership of the Fifth Ministry of Machinery Industry, and then through Li Rui. The two sides were not strangers.

After understanding the situation, Li Rui immediately had a meeting room arranged.

Whether it was because he wasn't busy with work or because he was still paying attention to school matters, Li Rui sat down with Liu Debao.

“Secretary Liu, we have already understood the necessary preparations and are already underway… As long as the contract can be signed, we can use bank loans to pay for the costs of upgrading the production line and increasing processing capacity… In addition, the factory has decided to invest all the profits from this order into capacity upgrades… I heard that Harbin Institute of Technology has connections with Hongguang Factory, I wonder if Secretary Liu could help introduce us…”

From the outset, Sun Maocheng made it clear that he wanted to purchase the Hongguang Factory CNC system to upgrade the production equipment.

Liu Debao was stunned for a moment, then instantly understood the other party's intention.

Using the CNC system from Harbin Institute of Technology, which was rejected by other major factories, as a pledge of loyalty!
Not bad!

This kind of cooperation is a win-win situation.

Li Rui, standing to the side, said with a look of satisfaction, "Your factory not only needs to improve its technical production capabilities, but you can also replace the logistics communication system."

"Indeed, a more efficient telephone communication network would facilitate communication with various component manufacturing plants, ensuring production progress and quality... however..."

Upon hearing Li Rui's words, Sun Maocheng's expression changed drastically, but he quickly returned to normal.

Simply purchasing CNC equipment from Harbin Institute of Technology is not enough!
For Jiangshan Machinery Factory, whose very survival was a problem, a telephone exchange network was not a priority.

Since Principal Li has brought it up directly, can we refuse? No!

"Just bring up any difficulties you encounter. Since we're cooperating, helping our partner solve the problems they face in their development demonstrates our sincerity, doesn't it?"

These words left Liu Debao staring wide-eyed in astonishment.

Principal Li has no shame whatsoever now!

He personally stepped in to make demands on organizations seeking cooperation with Harbin Institute of Technology.

Secretary Liu was stunned for less than three seconds before regaining his composure: Principal Li doesn't seem to have a face, does he?
When Li Rui was the principal, his ability to throw tantrums and act like a rogue was not only well-known in the Seventh Ministry of Machinery Industry, but also among many leaders.

"The loan we negotiated with the bank before was based on upgrading the production line. To reach a production scale of 3000 long-range rockets per year, the factory needs to invest about 2000 million yuan..."

"No money? That's easy to solve."

Li Rui answered with a relaxed expression, then looked at Liu Debao and asked, "Comrade Debao, I heard that your school's enterprise affairs office has set up some kind of investment company that can provide development funds to some promising units?"

"..."

Liu Debao was completely stunned.

He believed that apart from being slightly less decisive and having a better eye for people than Li Rui, he was not much worse in other aspects.

Only now do I realize that the gap is just too big.

One collaboration can lead to multiple additional collaborations, and both parties will benefit greatly.

Even if all of the school's hundreds of millions of yuan were disbursed as loans, the annual interest rate of 20% would still be a considerable sum. Banks cannot offer such high returns.

Moreover, there is a risk that high-interest bank deposits used for lending on specific projects may not be recovered.

If the loan is given to the partner, there is absolutely no risk: the production unit undertakes the production orders from the Harbin Institute of Technology's Industry-University Cooperation Office, and the production costs need to be settled with them through the Harbin Institute of Technology's Industry-University Cooperation Office!
risk?

nonexistent.

This creates a complete closed loop, which can expand the scale of cooperation, allow Harbin Institute of Technology's products to have more market access, and even help partners solve the funding needed to expand production capacity by providing loans, while also generating higher returns on the school's funds.

After figuring this out, Liu Debao couldn't help but wonder: If Li Rui had such a sharp mind, how could he have caused the school to almost go bankrupt because of the many projects he had recklessly undertaken and the near collapse of its funding chain?

Could it be that Xie Wei told Principal Li?
It must be Xie Wei!
The more I thought about it, the more I realized that only Xie Wei could have come up with this idea.

Thinking about this, Liu Debao felt annoyed: Xie Wei actually told Li Rui, the former principal who initially didn't care about school affairs, but didn't tell him, the secretary in charge of the military industry project!

Is it because I'm too concerned about saving face?

"Yes! The school currently has sufficient funds, and leaving them there would be a waste. It can help other institutions solve their difficulties while also collecting some interest, which is more conducive to future cooperation..."

Seeing that the others were looking at him, Liu Debao spoke up.

"How much is the interest?"

Upon hearing that there was interest, Sun Maocheng's heart skipped a beat. Could the other party be planning to lend money at exorbitant interest rates?
Even with high-interest loans, there is currently a shortage of supply.

If the other party can provide funds, even a 50% interest rate is acceptable.

Getting a loan from a bank is so difficult!

After saying that, he stared at Liu Debao with a nervous expression, afraid that he would announce an interest rate that would be unacceptable to them.

Liu Debao was also somewhat conflicted; the interest rate Xie Wei was asking for was indeed a bit too high.

As the school's Party Secretary, he couldn't ignore the school's interests. The higher the interest rate, the greater the school's profits, and naturally, the more abundant its funding.

"A bit higher than the bank's..."

Liu Debao paused for a moment, which made Sun Maocheng's heart jump into his throat.

"20%!"

Although it's high, it has to be said that it's impossible for it to go any lower.

"20%!"

Before Sun Maocheng could speak, one of the people next to him exclaimed and stood up!

"It is indeed a bit higher than bank interest rates, but the risks we are taking with our funds are much greater... Even with collateral, we still need to pay a higher price..."

Liu Debao explained.

How much funding can your school provide?

Sun Maocheng's urgent words interrupted Liu Debao's explanation.

It's higher than bank interest rates, but compared to the private lending market, it's incredibly low. More importantly, it allows for large-scale lending.

Moreover, although the interest rate is higher when taking out a loan from the Harbin Institute of Technology's Industry-University Cooperation Office, you can also get more business from the office, ensuring that the borrowing unit has the ability to repay the loan!
The two sides will be more closely bound together by the loan.

How much are you planning to borrow?

Liu Debao frowned.

With such a high interest rate of 20%, and the other party still so excited, could it be that they are planning not to pay it back?

"1000, is that okay?"

Sun Maocheng excitedly stated the amount they hoped to borrow.

"..."

Li Rui was stunned. Could it be that the other party was like him, planning to get the funds first and then renege on the debt?
Liu Debao had the same thought.

At that moment, he suddenly remembered Xie Wei's reminder: Don't relax your lending conditions just because someone offers high interest rates. While you're looking for high interest rates, they might be after your principal.

Seeing their reactions, Sun Maocheng realized he had overreacted and quickly explained, "It's like this, we've reached a cooperation agreement with Second Automobile Works to produce some key components for them... but because we lack funds, we can't build up production capacity..."

Liu Debao had only heard of the Second Automobile Works, but didn't know anything about it, so he fell silent.

Li Rui was somewhat surprised: "After Dongfeng Motor Corporation became one of the first batch of pilot enterprises to expand their autonomy last year and formed an annual production capacity of 5000 vehicles with a 5-ton load capacity, it is also designing buses and other products and making auto parts. It is indeed a very good industry."

Even Xie Wei is optimistic about the automotive industry.

"Yes, that's what we've been thinking too. We've been struggling with a lack of funds... Loans in XY City are prioritized for Second Automobile Works..."

"If that's the case, we need to come to our school to discuss it."

Liu Debao felt that he needed to ask Xie Wei for his opinion on this matter.

Getting funds from Harbin Institute of Technology to build supporting production capacity for other factories seems to be somewhat inconsistent with the lending conditions of the university-enterprise office.

(End of this chapter)