Chapter 440 Settling in Nanshan

Author: Quiet Thought

Chapter 440 Settling in Nanshan

The leaders here at Nanshan Science and Technology Park were shocked when they heard that Shirakawa Electric wanted a thousand acres of land.

After all, for Pengcheng, which has just developed, a 100-acre factory building is considered a big enterprise.

Who knew that this Neon electrical appliance brand had thousands of acres as soon as it opened its mouth. Can you not surprise everyone?

However, the shock was not over yet. The boss of Shirakawa Electric Appliances is preparing to invest $30 million in the Science and Technology Park to build a factory.

Thirty million US dollars, not 30 million RMB.

When Nanshan Science and Technology Park was established last year, the total investment was RMB 20 million.

It was only after the government and Zhongke Academy of Sciences that jointly invested so much money, otherwise Pengcheng would not dare to have such a big battle.

But now this young man can just move his mouth casually for US$30 million, which is about RMB 103.5 million based on the current exchange rate.

This investment is more than five times the capital of the Nanshan Science and Technology Park, and it is only a first phase of the project.

Liang Xiang shivered his lips twice. He was extremely eager for this investment, but he did not dare to make a decision.

$30 million, who can't be moved?

After hearing the words of the leader named Xie, Shirakawa Kaede sighed slightly in his heart.

The investors here in Huaxia only need to be responsible for factory construction and the procurement of domestic alternative equipment.

CD factories, optical drive factories, LCD TV factories, and even laptop factories that Shirakawa Electric are developing.

Build step by step and build it in different places, that is a necessary measure.

Relatively speaking, the atmosphere there is more open, so Shirakawa Electric has also established its own branch there.

"The total investment amount of US$30 million remains unchanged, but due to the progress of the project, the investment will be gradually implemented in the next three years.

As the saying goes, enter the market early and eat meat early.

"Mr. Shirakawa, we extremely welcome Shirakawa Electric to carry out a series of investment activities in the Science and Technology Park.

In terms of joint venture ratio, you can retain 55% of the total share capital and the remaining 45% of the local institutions' investment."

Before coming to China, Shirakawa Kaede had actually been to Yizhou once.

Therefore, the joint venture ratio was particularly relaxed and the strategy of no longer maintaining the dominant position of local enterprises.

"According to customary practice, China accounts for at least 51% of the shares with foreign investment of up to 49%.

Tsk, Shirakawa Kaede was also deeply infected with this kind of enthusiasm for doing things.

In addition, considering that some equipment needs to be transported from overseas, Shirakawa Electric will invest US$10 million in advance for the procurement of special equipment.

However, some things need to be explained clearly in advance. This is a matter of principle and also concerns whether each other can continue to cooperate smoothly in the future.

After all, it is not as good as Neon in China. Here, Shirakawa Electric Appliances are still very immature, and their connections, resources, relationship networks, etc. are all incomparable.

Including management experience, the establishment of a quality system, and the training of qualified workers, etc., this is an invisible asset for China.

Both sides were very polite again. This time, Shirakawa Kaede was invited to China for inspection, which was considered to be the first stop.

What Shirakawa Kaede lacks the most now is US dollars, and he is full of confidence when speaking.

Pengcheng may be a little behind at this time, but he is definitely not inferior to anyone with speed.

The leader surnamed Xie held Shirakawa Feng's hand tightly and shook it hard, "Shirakawa Electric is a good friend of the Chinese people!"

Even though he was his first hometown, he still had his own concerns during this period.

"Mr. Xie, if a joint venture is adopted, how will the shareholding issue be allocated?"

Since then, most automobile companies here in China have followed this joint venture ratio, but due to special historical reasons, the newly established Shanghai Automobile Volkswagen held a 50% stake in each party.

After all, I am still in the stage of crossing the river by feeling the stones, and all decisions need to be discussed repeatedly.

Cultivating local markets is partly a reason, and it can also be used as a springboard to develop into the Southeast Asian market.

"Okay! Mr. Liang said so, then I will be more confident in this cooperation."

In addition, Shirakawa Electric's investment in China is not only Pengcheng, but more factories will be built here in the future.

If you want to save your profits, you can only try your best to reduce costs.

When the neon bubble has passed in recent years, China has become more open. That is the best time for Shirakawa Electrical Production Capacity to be collectively moved out.

With more people and more power, the Chinese people are the most diligent nation in the world. The slogan of Pengcheng's speed is not in vain.

This has been a great policy concession, and it is not easy in the current era.

Moreover, after the joint venture between the two parties, Huaxia can also learn the advanced technology of Shirakawa Electric.

"Of course, we look forward to the success of this cooperation with the greatest sincerity." The leader surnamed Xie nodded in agreement.

This will be a great driving force for the entire Pengcheng economy and even the improvement of some industrial chains.

Making full use of the resources here in China is partly the reason, and sharing risks is another factor.

To be honest, China may rely more on Shirakawa Electric Appliances for both.

Shirakawa Kaede also understood this, so he nodded to express his gratitude for the conditions offered by the leader named Xie.

The electronic products operated by Shirakawa Electric are naturally within this range.

He hopes that one day, Shirakawa's headquarters will be established on this land.

The continuous increase in the yen also put a lot of pressure on Shirakawa Electric, so it is not too late to transfer production capacity.

The joint venture factory that Yu Pengcheng has settled in is at most the first test.

Not to mention that what the other party took out was the US dollar that was in short supply in China at this time, the "Regulations on Encouraging Foreign Investment" will be promulgated in half a year.

Whether in terms of technology or business strategy, Shirakawa Electric has its own system.

Shirakawa Kaede thought for a moment, then turned to confirm.

Of course, its scale will not be too large, it can only be considered an excessive.

The main purpose is to establish an OEM factory, which is specially used to produce hot overseas products such as Sound, CD machines, game consoles, etc.

The news from above is indeed correct. This Neon friend does have a special favorable impression of China.

This time, when it comes to cooperation with Pengcheng, Shirakawa Electric mainly wants to design and research and development of radio, walkman and other products here.

Shirakawa Electric's products are not as sensitive as automobiles and will not involve the technical layout of the entire industrial chain.

But the shares reversed each other, which made him a little worried. If there were differences in decisions between the two parties in the future, how should they be resolved?

"By the way, if the cooperation is reached, Shirakawa Electric hopes to start production before the end of the year, can this goal be achieved?"

Shirakawa Electric needs internal discussion, and Huaxia also needs to report the relevant situation to its superiors.

So for reason, Shirakawa Electric Appliances settled in Pengcheng is the situation that both sides are most happy to see.

Therefore, Shirakawa Kaede's main task this year is to inspect overseas and make preliminary plans for the future internationalization route of Shirakawa Electric.

As if seeing his hesitation, the leader surnamed Xie added another sentence.

Shirakawa Feng frowned slightly, which made him hesitate. After all, it was related to the future and he had to be cautious.

So it is impossible not to be moved without being moved in the face of the temptation of 30 million US dollars.

This is a very typical joint venture ratio, which was later written into textbooks.

However, there may be a wait for a while in time. When the government agencies support the establishment of wholly foreign-owned enterprises, Shirakawa Kaede will consider entering the Chinese market on a large scale.

We recommend that both parties jointly invest to establish a joint venture enterprise, and give full play to each other's advantages and deepen their efforts in domestic and overseas markets."

At this time, Huaxia was eager for all its technology and advanced management experience.

Your investment part can be deducted by labor, materials and other expenses for factory construction."

As for pure foreign-funded enterprises, it is extremely rare in China at this time. If you want to see large-scale wholly foreign-owned enterprises, you may have to wait until after the 1990s.

"In principle, Shirakawa Electric agreed to this cooperation, but the details still require internal discussion and specific plans."

In addition, with careful internal identification, it was confirmed that the founder of Shirakawa Electric was a friendly person to China.

His eyes were slightly back, and a leader standing beside him thought calmly for two seconds before he spoke slowly.

In order to protect the development of local markets and local enterprises, and to learn technology, foreign investors are basically investing in China in a joint venture.

As expected, this is also considered a Chinese characteristic.

However, due to policy reasons and considering that China is different from Neon's laws and regulations here.

Isn’t Shirakawa Electric’s cooperation this time delivered to the door, a complete example?

However, although we can only invest in a joint venture now, Shirakawa Electric cannot give up this market.

Although they paid a lot of money, this has been a great help to them.

But the leaders present knew that if there was no accident, the top leaders would agree to this joint venture.
To be continued...