Republic of China: Ace Pilot

Chapter 647 The $3000 Million Procurement List: Quality and Price

With the newly acquired $3000 million in promissory notes in hand, Fang Wen immediately made purchases.

In this era, $3000 million in purchasing power is astonishing, but for the supplies Fang Wen wanted to buy, it was just about enough to meet his expected procurement needs.

What should I buy?

Fang Wen wrote down his thoughts, which turned into a long shopping list.

Of course, you have to eat one bite at a time, and things have to be done step by step.

Fang Wen plans to finalize the procurement of aluminum alloy materials first.

Aluminum alloys account for more than 70% of the structural weight of aircraft, making them a very important and urgently needed alloy material for Taishan Military Industry.

Among them, there are two types of aluminum alloys that require the largest procurement volume.

Duralumin: 2024 alloy, used in aircraft beams, wing skin (Taishan Civil Aircraft), and rocket casings.

Forged aluminum: 6061 alloy, with strong corrosion resistance, good weldability and excellent machinability, is suitable for manufacturing non-core load-bearing structures such as aircraft skin (Taishan military aircraft), fuselage frame, and pipelines.
In the tender documents issued by Taishan International, there were two American companies that Fang Wen was particularly interested in.

Alcoa and Reynolds Metals.

The former is Fang Wen's original aluminum alloy supply channel. From this company, Fang Wen has purchased more than $500 million worth of aluminum alloy materials.

However, during this period, Alcoa encountered some supply problems to Taishan Military Industry.

Therefore, Fang Wen plans to add another supplier, also hoping to use this method to put pressure on Alcoa.

Inside the meeting room of Taishan International's New York office, representatives from two different aluminum companies sat facing each other at opposite ends of a long mahogany table.

On the left is Hank, a tall, middle-aged man representing Alcoa, wearing a family crest on his suit sleeve and with his usual arrogance on his face.
On the right is Isaac, a lean Jewish man and representative of Reynolds Metals, clutching a thick price list in his hand, his eyes filled with urgency.

Fang Wen sat in the main seat, with Lin Shuiwang standing behind him, quietly reporting the latest offers from the two companies.

“Mr. Hank,” Fang Wen began, “over the past six months, your company’s duralumin prices have increased by 30%, but the supply has been cut in half. This has left me with no choice but to seek other sources of supply.”

Hank picked up his coffee, took a sip, and explained, "Mr. Fang, as you know, the situation in Europe is tense, and the military is giving priority to procurement. We have no choice but to do this. As for the price, I can apply for a further reduction of 5%, and the supply volume will be restored to 70% of the original procurement volume. This is our greatest sincerity."

"Sincerity?" Fang Wen chuckled and turned to Isaac. "Mr. Isaac, what do you think of Reynolds' offer?"

Isaac immediately straightened his back and adjusted his glasses: "Mr. Fang, we can not only guarantee your supply volume, but also provide free aluminum alloy processing technical support to ensure that the materials your company receives can be used smoothly in production without any material problems. As long as you sign a three-year contract, you can enjoy further discounts on subsequent purchases."

Hank's face instantly darkened.

Now, everyone in New York's upper circles knows that Fang Wen has a huge sum of money he's ready to spend, and everyone wants a piece of it.

Alcoa, of course, also wanted to make a profit from it.

Not to mention, Taishan Airlines was originally a valued customer of theirs, and it was a disgrace for it to be snatched away by their competitor.

It could even have a worse impact, allowing Reynolds to seize more market share.

He stood up abruptly, pressed down on the documents on the table, and said urgently, "Mr. Fang, please wait a moment! Price reductions and full supply are nothing. I have something more important to show you. I believe that after you see it, you will definitely choose us."

Fang Wen raised an eyebrow, signaling him to continue. Hank took a sealed folder from his briefcase, tore open the seal, pulled out several lab reports, and slammed them heavily on the table: "This is the latest achievement of our lab—a super-hard aluminum codenamed '7075,' belonging to the Al-Zn-Mg-Cu alloy system. After heat treatment, its tensile strength can reach over 540MPa, approaching the hardness of 4130 chromium-molybdenum steel, but its density is only one-third that of steel!"

These words stunned not only Isaac, but also Fang Wen, who was captivated by them.

He has been seeking high-quality chromium-molybdenum steel resources. This material, due to the addition of molybdenum, has significantly improved high-temperature stability, fatigue resistance, and toughness. Its tensile strength reaches 600-900MPa (after heat treatment), and it can work for a long time at temperatures above 500℃. It also has excellent weldability.

Such excellent material data allows it to be used in core load-bearing components for military applications, such as aircraft engine mounts, landing gear piston rods, and rocket body connectors.

Therefore, the demand is very high in both aircraft manufacturing and rocket manufacturing.

However, if the 7075 alloy, which has the same performance but is much lighter, is used instead, both aircraft and rockets will improve due to the weight reduction.

What are the other specifications of this new type of aluminum alloy?

He reached out and picked up the lab report, which clearly displayed the test data: tensile strength 542 MPa, yield strength 483 MPa, and elongation 11%.

These data mean that once this ultra-hard aluminum is mass-produced, it can be directly used in core load-bearing structures such as aircraft landing gear and rocket bodies, which can reduce weight, improve maneuverability, and enhance impact resistance.

Isn't this exactly the material that Taishan Military Industry urgently needs for mass-producing guided rockets?

"When will you be able to start mass production?" Fang Wen's voice was a few decibels deeper than before, and his fingertips unconsciously tightened around the report.

“It’s still in the laboratory stage. Small batches of samples will be produced next month, and mass production is expected to take 6 months.” Hank saw that Fang Wen was interested and softened his tone. “But as long as you sign an exclusive procurement agreement with us and give up your cooperation with Reynolds, we can give priority to allocating production capacity to Taishan Military Industry and try to compress the mass production time to 4 months.”

Fang Wen was tempted.

Isaac hurriedly interjected, "Mr. Fang, this is all lab data! Whether it can be mass-produced and whether the performance is stable are all unknowns. Don't be fooled by their empty promises! We can supply it now, and we can... we can lower the price by another 1%!"

It's not about the money anymore.

Fang Wen ignored Isaac and looked back at the report.

He was making plans in his mind.

Even if this 7075 alloy cannot be mass-produced within 4 months, we must plan ahead and use our special abilities to develop its applications. We should be able to be the first to use this new material in aircraft and rockets.

The problem is that the US military will not restrict exports after the new aluminum alloy is mass-produced.

Furthermore, Reynolds Metals cannot afford to offend them.

Thinking of this, he looked at the aluminum company representatives on his left and right: "Gentlemen, I am here today to negotiate with you with great sincerity. As things stand, I want Alcoa's new aluminum alloy materials, and I also want to reach an agreement on a larger purchase volume of aluminum alloys today."

He paused for a moment, then continued.

“From the company’s perspective, continuing to be a sole supplier is not feasible. We need two suppliers to check and balance each other, which is in Taishan’s best interest. But I can promise that if Alcoa can deliver qualified ultra-hard aluminum samples within four months and the performance meets the reporting standards, Taishan Military Industry’s subsequent 60% of aluminum alloy procurement will still go to Alcoa. The condition is that the procurement contract for this new type of aluminum alloy material will be signed by Taishan International.”

He said this to circumvent the U.S. Neutrality Act, so that the 7075 alloy would not be refused export under the Neutrality Act after it was produced, since Taishan International is a U.S. listed company.

Hank hesitated for a moment, then quickly began to calculate.

If Fang Wen's request is followed, although 4% of the share will be given up, it can be recouped from the 7075 alloy, or even more.

The company also hopes to cover the R&D costs of super-hard aluminum alloys through this advance purchase method. "Deal! But I need you to prepay a $200 million R&D deposit. If we fail to deliver on time, we will refund the full amount and pay a $100 million penalty. However, if you are unable to pay for subsequent purchases after we produce the product, we will forfeit the deposit."

“Okay.” Fang Wen immediately made the decision, then turned to Isaac, who was beaming with joy. “Mr. Isaac, I’ll give you the remaining 40% of the aluminum alloy order. But I have one condition: the first batch of goods must be shipped to New York Harbor within three days, and there must be no delays in the monthly supply thereafter, otherwise the cooperation will be terminated immediately.”

Upon receiving the large order, Isaac nodded quickly: "No problem! I'll immediately notify the company to send someone over to handle it."

After the negotiations concluded, Hank and Isaac left one after the other, leaving only Fang Wen and Lin Shuiwang in the meeting room.

Lin Shuiwang couldn't help but ask, "General Manager, are we really going to spend all 3000 million?"

"Absolutely, otherwise we might not have another chance," Fang Wen said meaningfully.

He knew very well that the money was just a number; it was received from the American conglomerate and spent in the United States, but it would ultimately flow back into the conglomerate's hands. What he had acquired, however, was the substantial amount of materials and equipment he had obtained.

Not to mention, if France falls in the future, German submarines will enter the Atlantic Ocean and control shipping between the United States and Europe. At that time, it will be difficult to transport goods across the sea, even if there are goods available.

The day after the aluminum alloy negotiations concluded, the Taishan International Conference Room welcomed a new group of guests.

This time, sitting opposite them were representatives from Crucible Steel Company and Amco Steel Company.

“Mr. Fang, these are the test data for our 4130 chromium-molybdenum steel, which far exceeds the military standard requirements.” The representative from Crucible Steel pushed the report in front of Fang Wen. After Fang Wen finished reading it, he turned the page again. “This is the 301 stainless steel you requested. Its corrosion resistance test showed no rust after 72 hours in a 5% salt spray environment, making it perfectly suited for the harsh working conditions of fuel lines.”

The Amco representative standing nearby was still trying to salvage the situation: "Mr. Fang, our price is 12 points lower than that of crucible steel, and we guarantee the supply. Choosing us will save you a lot of procurement funds."

Fang Wen looked at the test report, his eyes sharp as he looked up: "I'm not just a businessman, I'm also a soldier. I understand better than any of you that on the battlefield, the only thing a soldier can truly rely on is his equipment. Even a 1% difference in strength can lead to completely different results. What I need isn't 'qualified,' it's 'reliable.'"

He turned to the representative of the crucible steel company, saying, "If you can guarantee that it meets the data in the test report, I will decide to order your company's products."

The representative from Crucible Steel gave a hint of approval and immediately nodded: "No problem! We can adjust the production line priority and postpone civilian orders to ensure your needs are met first. However, a 25% deposit is required in advance, as the raw material reserve cost for special steel is not low."

“Okay.” Fang Wen signed without hesitation. “In addition, the contract subject is still Taishan International, and the customs declaration should be marked as ‘raw material for civil machinery structural parts’. This point should be written into the terms.”

“No problem, it’s designed for both military and civilian use,” the representative from Crucible Steel replied.

Immediately afterwards, Lin Shuiwang saw off the representatives of Amco Steel Company, who had not reached a purchase agreement, while Fang Wenze and the representatives of Crucible Steel signed a letter of intent for purchase.

The specific implementation will be handled by Taishan International.

After seeing off the representatives from Crucible Steel, Lin Shuiwang couldn't help but ask Fang Wen, "General Manager, this alone cost $800 million, and with the aluminum alloy, it's already $1900 million."

“It’s worth it.” Fang Wen pushed the contract to Lin Shuiwang for filing. “Chromium-molybdenum steel is the core of the rocket body and engine support, and stainless steel is related to the safety of the fuel system. We can’t skimp on any of it. The remaining 1000 million should be spent precisely on those ‘exclusive treasures’.”

Exclusive item?

Lin Shuiwang couldn't guess the meaning behind Fang Wenhua's words.

The plane landed at an airport in Delaware.

Fang Wen personally piloted the plane, leading the procurement team here, to prepare for yet another procurement negotiation.

They took a taxi to DuPont in Delaware.

Upon learning that it was a purchasing group, DuPont immediately arranged for someone to receive them.

Mark, the person in charge of reception, looked at the purchase list that Fang Wen took out and his face was full of doubt: "Mr. Fang, Nylon 66 has just achieved industrial mass production and is currently mainly used in women's stockings and toothbrush bristles. You want to purchase 50 tons all at once, which is probably not in line with our product positioning."

Fang Wen would never say that he bought these nylon materials for parachute lines and bearing cages.

Parachute lines made of cotton are prone to breakage, and bearing cages made of metal are too heavy. Nylon, on the other hand, is three times stronger than cotton and weighs only one-fifth as much as steel.

It is a very good alternative material.

He leaned back in his chair and said slowly, "I'll offer you 120% of your current factory price."

That one sentence is enough.

Mark quickly reported the situation to his superiors, and a procurement contract was soon reached.

They were unaware that this material would become extremely scarce after the United States entered the war.

The plane then took off and flew to New Jersey.

At the Bakelite Corporation headquarters in New Jersey, the person in charge took a firm stance: "Mr. Fang, phenolic resin is our exclusive patent, and our monthly production capacity is limited. We can only supply you with a maximum of 1 ton, and there will be no discounts."

The company was a monopoly in the global synthetic resin industry in the early 20th century, and it remains the sole producer of phenolic resin (commonly known as "Bakelite").

Phenolic resin is a core material for various electronic devices and insulating components due to its high temperature resistance and strong insulation properties.

To be honest, his family can really be that arrogant, since no one else can produce that kind of product.

Fang Wen had no other choice but to agree.

After leaving the company, he discussed countermeasures with Lin Shuiwang.

"Shuiwang, find a way to buy the goods from his buyers at a high price. This material is essential for our semiconductor radios, walkie-talkies and other electronic products. Even if it is more expensive, you must ensure the supply."

Lin Shuiwang stated very seriously, "General Manager, rest assured, I will definitely follow up properly."

"Alright, you're in charge of the rest."

Fang Wen handed the remaining purchase list to Lin Shuiwang.

The amounts are small, but they are all very important.

include:

Tetraethyl lead (used to improve the anti-knock properties of aviation gasoline).

Nickel-based alloys (turbocharger blades).

Rubber seals (fuel system interface).

etc.
The $3000 million purchase is now almost complete. Fang Wen put Lin Shuiwang in charge of the follow-up work, while he went to the Empire State Building in New York to prepare for the treasure hunt in Africa.

(End of this chapter)