BXBX NOVEL Chapter 167 – Motorcycle Factory
All these things were finally over. Tai Hua Trading’s business was also improving, and Feng Yu came over to the Machinery Factory to look for Li Mingde. He wanted to talk about the Motorcycle Factory.
“Motorcycle Factory? We specialized in manufacturing agriculture machines and this motorcycle does not suit us.” Li Mingde had some hesitation.
Feng Yu carried on painting a beautiful picture, and he felt that Feng Yu made sense. The next 5 to 10 years would be good for motorcycle sales, and the profits might be better than agriculture machinery.
But he worried if the City Government would approve this motorcycle project. Furthermore, Feng Yu had asked him to request a plot of land to build a new factory. This new factory would be separated from the existing agriculture production factory.
“Manager Li, you won’t know unless you try it out. I will be honest with you. Aviation Factory had approached me, and they are willing to work with me. I will even be getting the bigger share. After all, I am providing the technologies and production lines. Do I need to repeat how much profits would the motorcycles bring in?”
“Will the City government approve?”
“Of course, they will. I had spoken to Mayor Zhang. Also, it was because of Mayor Zhang that I decided to speak to you. If not, I would have worked with the Aviation Factory.” Feng Yu continued.
This was the first step for him to take over the Machinery Factory. How could he work with the Aviation Factory? The Aviation Factory was specialized in planes and cars. They were not interested in motorcycles.
Furthermore, the greedy Hou Haitao would never let Feng Yu benefit from this project!
“This cooperation must be regarding shareholding? We can’t buy these technologies and machines using money?” Li Mingde asked.
“What do you think? Manager Li, give me an answer. If you think that this project will work, then you report to the City Government. I guaranteed that the Government and the Machinery Factory would not lose out. If you think that this would not work, then we don’t need to discuss further. The construction of the new factory needs time too. There’s no point in wasting time dragging this matter.” Feng Yu crossed his arms. He believed that Li Mingde would never reject this project.
“Fine. You give me 3 days. I will discuss with the leaders and get back to you.”
……
“Old Zhang and Old Xu, the both of you are telling me about this motorcycle factory. Why can’t we set up a new factory? Must we really combine with the Machinery Factory?” The Mayor looked at his two deputies. Someone was willing to invest in a motorcycle factory, and this was a good thing. It will bring more taxes to the City Government and also solve the unemployment issues.
Zhang Ruiqiang glanced at Deputy Xu. Deputy Xu does not seem to want to answer the Mayor so Zhang Ruiqiang said: “Mayor, if we were to decide, we will definitely choose to set up a new factory. But now, the one who imported the Motorcycle production line and the technologies insist on investing in the Machinery Company. This person is not an outsider. He is one of the shareholders of the Machinery Company, Feng Xingtai.”
“Oh, it’s him? That farmer entrepreneur? You told me before that his son was the one who attended the Moscow University’s summer camp and he had connections with the Soviet Union?”
“Yes. The farming machines produced by the Machinery Company now, are manufactured using the technologies and advanced machines he imported from the Soviet Union. Also, the Wind and Rain humidifiers in the market is also his company’s product. The machines used in the City’s textile mill, clothing factories, etc. were imported by him too.” Zhang Ruiqiang added.
“It’s like this? Then what do you think of converting those technologies and machines to shares?” The Mayor asked.
Deputy Xu said: “I feel that this can be done. Li Mingde had reported to me that although this motorcycle production line and technologies was worth a lot of money, we will also be providing the land and factory. So, even if it were to convert into shares, it will not be a lot of shares. The Machinery Company would need to invest a lot in the piece of land and the factory. So, the overall profits might be lesser this year. Once the motorcycles were produced, the profits would be higher than the agriculture machines!”
Zhang Ruiqiang was in-charge of the restructuring of State-owned enterprises and was very familiar with the State-owned enterprises. He thought for a while and said: “Mayor, I remembered that in the western part of the city there was an old bicycle factory which had shut down. That piece of land is quite big, and the factory next to it had just moved out. If we combine both factories, the land would be big enough, and we do not need to construct the new factory.”
“That is a large area, and we are letting this motorcycle factory to use it?” Deputy Mayor Xu does not agree. He felt that it was a waste.
“We can ask him to provide us with 2 production lines and increased the annual production from 100,000 units to at least 200,000 units. Also, we will be using the old bicycle factory land, and we can solve the old bicycle factory workers employment issues. Motorcycles and bicycles are all two-wheelers, and there should be some similar technologies.” Zhang Ruiqiang had done his homework. He felt that the prospect of motorcycles would be excellent and 100,000 units annually were too little.
“Two production lines? You think he would be able to get it?” The Mayor asked.
“That’s his problem. If he can’t get it, then we would have an excuse to lower the number of shares he is trying to convert.” Deputy Mayor Xu felt that Zhang Ruiqiang was right.
……
“What? 2 production lines? This…… it’s a bit difficult. Then the shares I am getting should also be doubled!”
They were tricked! Feng Yu was ecstatic. Kirilenko had helped him get 2 production lines. Feng Yu had purposely exaggerated the prospects of the motorcycle industry and even said that he would be responsible if the sales were not good. In the end, the City Government saw the profits and force him to get at two production lines.
“Right. This will be the conditions. Do not worry about the shares. We will give you whatever you deserve.”
One production line was worth at least 4 million Rubles. If added in the accompanying technologies, two production lines would be more than 20% shares. This was a big step to becoming the biggest shareholder of the Machinery Company!
“Fine. I agree with your conditions!” Feng Yu acted as if he was in a difficulted position. In his heart, he was dancing with joy.
“Two production lines and advanced technologies, we will give you 18% shares.”
“Wait a minute. How many shares?”
“18%. Let me calculate for you. These 2 plots of land are worth how much? Also, the empty factories need to be renovated. Everything will be ready in less than a month. How much is this worth? 18% is a lot.” Li Mingde said.
“I will work with the Aviation Factory.” Feng Yu said with an unhappy expression.
Li Mingde laughed: “It’s too late. The Aviation Factory is investing in our Machinery Company for this Motorcycle Project!”
“What? You all allowed the Aviation Factory to invest? Does the Hong Kong businessman know about this?”
“We are the major shareholder. We don’t need to inform any parties if we were to buy or sell our shares! In future, the Machinery Factory would be owned by 4 parties.”
“Even if the Aviation Factory is investing, I want at least 20%. If not, I will not cooperate, and I will work with Ji City’s vehicle production plant!” Feng Yu had an anxious expression.
“Fine. Then it will be 20%. This is the final decision, and there will be no more changes. Tomorrow, get your father to come over to sign the contract and to attend the groundbreaking ceremony of the Machinery Company’s Motorcycle Branch factory!”