Technology shares are intangible assets. Generally, the proportion of shares can be negotiated and there is no limit.

Mu Yang had already made an estimate and replied: "With the technological advancement of our aluminum alloy automobile plates, it is not an exaggeration to say that we can guarantee the world's leading position for five to ten years.

Therefore, no matter how much investment both parties make, whether the scale is expanded or reduced, our technology investment will account for 30% of the total shares."

After hearing this, Asem was shocked and shook his head: "Mr. Mu, this is impossible!

The ratio of 30% is too high and we cannot accept it."

"This ratio is not high at all. On the contrary, I would say it is cheap. Even if it is the price, the annual technology licensing fee of US$250 million is not excessive at all."

Assem refused: "Mr. Mu, I don't deny that your process technology is very advanced, but it all depends on how much money both parties can make from cooperation.

To generate a profit of 250 million U.S. dollars, according to your calculation, you must sell at least 130,000 tons of aluminum alloy automobile plates. This is too much. Our Hydro Aluminum Company sold 180,000 tons last year, and we still can’t make that much money. It’s expensive.

If the other side lets us work for nothing, then what’s the point of cooperation?”

"If we cooperate and cannot sell 500,000 tons of aluminum alloy automobile plates a year, it means that your sales channels are really not good, and then this cooperation is really meaningless;

But if it can sell 500,000 tons, it will generate a profit of 1 billion US dollars every year." Mu Yang said that even he was a little embarrassed. 30% of the technology shares was indeed too high. He blushed and coughed.

, took a sip of tea and continued, "Since it is a cooperation, we do not require too many shares, just 60% of the total share capital. We will make up whatever the total investment requires."

The ratio of 6:4 was discussed between Xinghai Group's strategic department and Mu Yang. Both parties must make money, otherwise they will not be able to cooperate for a long time.

If Hydro Aluminum's shareholding ratio is less than 30%, it would be better not to cooperate.

Assem retorted: "Mr. Mu, it's okay for us to hold 40% of the shares, but it's impossible for technology to hold 30% of the shares. The maximum is 15%. Otherwise, our investment cost will be too high. This is no different from cooperation or not."

The two parties bargained, had many disputes, and discussed for a long time.

Mu Yang also knew that 30% of the shares for this technology was a bit too much, so everyone gave in and the final deal was 20%, which was in line with his expectations.

The two parties plan to invest 600,000 tons of aluminum alloy automobile plates as a basis. Excluding equipment, if it is a new factory, it is estimated that it will cost 400 million U.S. dollars. This construction cost will be borne by Hydro Aluminum Company.

This construction cost is much higher than the investment cost of Xinghai Group. After all, the cost of optical infrastructure abroad is much higher.

The equipment for the 30 production lines is priced at US$1.2 billion, that is, excluding the 20% share held by Technology, the total investment is US$1.6 billion, and Xinghai Group will also account for 40%, or US$800 million.

After calculation, Hydro Aluminum Company will need to supply Xinghai Group with US$400 million, which is a total investment of US$800 million.

After discussing preliminary cooperation, time flew by very quickly.

The two sides had lunch and after a lunch break, they continued to negotiate some details in the afternoon.

For example, regarding market division, Xinghai Group can no longer enter the European and American markets to sell aluminum alloy automotive panels. There is no controversy on this point.

Assem said: "Mr. Mu, we can withdraw from the Chinese market."

"Mr. Assem, I think you have made a mistake. This is not equal. Our products have great advantages, with excellent performance and good quality, and lower production costs. It is only a matter of time before we seize the domestic market and the Southeast Asian market.

"

Mu Yang smiled and said, "Even if it is the market currently occupied by Novellis and Alcoa, we will quickly seize it. There is a saying in China that the tides are changing."

"Well, what you said makes sense, but at least in a short period of time, you can't do it, which is different from us voluntarily withdrawing." Assem shook his head and retorted, "Besides, even if you sell it cheaply and no matter how good the quality is, I

Not necessarily all your domestic automobile companies are willing to purchase your company's aluminum alloy automotive panels. For example, your state-owned enterprise Yiqi Group currently still purchases from our company and Alcoa.

Your state-owned enterprise does not purchase from Novelis, but it is just due to certain reasons of the Z government, for example, it is Asan's company.

As for why I don’t purchase from your Xinghai Group, I think you can guess the reason.”

When Mu Yang heard this, he cursed secretly: Damn it!

Sure enough, if you want to sell aluminum alloy automotive panels to state-owned enterprises at low prices, it is not a question of price at all.

Assem continued: "Actually, even if we withdraw from the Chinese market, your state-owned enterprise Yiqi Group will not consider purchasing from your company unless it cannot buy aluminum alloy automotive panels.

It would be worse if our partnership company produces better products, your country's Yiqi Group still purchases large quantities from our partnership company, and Xinghai Group also earns this profit."

Hearing this, Mu Yang couldn't help but admire Jiang's age.

But this is not bad, it just makes less money.

As for the Southeast Asian market, Xinghai Group does not want to give up.

Only after Xinghai Group is restricted from selling in Southeast Asia can partners enter the restricted market.

For example, island countries are also very hostile to Chinese companies and completely prohibit Z government companies from purchasing products from Warwick companies.

Xinghai Group and Hydro Aluminum Company also discussed many details.

For example, in order to conceal Xinghai Group's holdings, offshore companies will be used to invest in cooperative companies, so that the outside world will not know that Xinghai Group is a partnership, at least not that Xinghai Group is the major shareholder.

Maybe the Z government can find out that the major shareholder is a company belonging to the Xinghai Group, but it's fine if the general public doesn't know.

On the surface, Xinghai Group will sell 30 production lines to Hydro Aluminum Company for US$1.2 billion, which is just a superficial cooperative relationship.

In terms of factory operation and sales, Hydro Aluminum Company is mainly responsible for the work, with Xinghai Group assisting technology.

The equipment is still maintained by engineers dispatched by Xinghai Group. Muyang will not disclose the core process and does not allow Hydro Aluminum Company personnel to dismantle the equipment.

At the same time, Xinghai Group arranges domestic personnel to enter the financial department, sales department and technical department of the cooperative company for supervision. These overseas personnel will be rotated regularly.

Mu Yang suggested: "It will take about three months for me to manufacture the production line and debug it, and it will also take time to ship the equipment by sea. Within these few months, you can sell the old equipment."

"We'll think about it."

Assem smiled and replied.

The old equipment must be sold, but we must wait until the new equipment is installed and can be produced normally to reduce our own risks.

The business negotiations took a total of three days, and finally the two parties signed the contract.

The cooperation period begins on August 5, and starting on January 1, 2012, the profits generated by the aluminum alloy automotive sheets sold by Hydro Aluminum Company will belong to the partner.

During these few months, Xinghai Group continued to sell overseas, and the money it earned was also its own, and the two parties were still in a competitive relationship.

But after New Year's Day in 2012, we will not be able to enter new European and American markets. Cooperation with European and American car companies such as Porsche can still continue, but 40% of the profits generated will be shared with Hydro Aluminum Company, and there is no need to ship products from China.

, but from European and American origins.

This cooperation is a win-win for both parties.

If the two parties do not cooperate, Xinghai Group will make a very good profit of US$230 million per year overseas in the aluminum alloy automobile plate project.

After the cooperation, if we can sell 600,000 tons per year, our annual profit will rise to US$700 million, and we will also receive US$400 million in equipment costs. Excluding equipment production costs, we will actually earn nearly US$100 million. One point

No money was invested.

Hydro Aluminum will invest US$800 million. Since they have an old factory, the actual investment will be approximately US$650 million. It will take one and a half years to achieve profitability, and it will take more than three years to achieve the same level of profitability as without cooperation.

If the sales exceed 600,000 tons, the return on investment will be faster and you will earn more in the future.
Chapter completed!