The relaxed atmosphere of the high-level meeting between the two parties did not discuss any substantive issues. It was more about creating an opportunity for senior corporate executives to meet and familiarize themselves with each other.
Formal talks will begin the next day.
after the meeting
Wang Yaocheng returned to the hotel room and carefully sorted out the areas of cooperation to be discussed.
overall
There are not many difficulties in the second round of cooperation. The cooperation between Carrefour Supermarket Group and 7-11 Supermarket Chain Group is mainly to learn from each other's strengths and make up for their weaknesses in Southeast Asia and make some useful attempts.
In their respective base camps, the lead is almost unshakable.
shipbuilding industry
Royal Capital has acquired the Yangtze River Shipyard in Jiangsu Province and plans to establish a joint venture with Mitsui Shipbuilding to fully introduce Japan's advanced shipbuilding technology and experience and create a shipbuilding base with internationally advanced levels.
As traditional shipbuilding powers, Japan and South Korea have strong competitiveness in the offshore engineering field.
Thanks to its price advantage and high quality, the Korean Peninsula ranks first in the world in terms of order volume, delivery volume and orders on hand in the field of shipbuilding. Japan ranks second. Faced with South Korea's aggressive price competition, it continues to encroach on market share.
After learning from the painful experience, Japan set its sights on the rising mainland of China.
Cooperating with the Wang Consortium, which is deeply involved in mainland China, is a strategic move for Mitsui Shipbuilding to break through its operating difficulties and may revitalize the company.
As a global consortium
Whether it is the Mitsui Consortium or the Wang Consortium, their ocean shipping companies have a rigid demand for large ships to transport bulk cargo all over the world.
300,000-ton iron ore ships, 300,000-ton crude oil carriers, 200,000-ton dry bulk carriers, and 16,000 TEU container ships. These large orders alone are enough for Mitsui Shipbuilding to thrive!
The problem is
No matter how good our relationship is, it's not okay for the same boat to be priced much higher than others.
Royal Family Fund
Its subsidiary Swire Shipping Company is an independent listed company. As a ship owner, under the same circumstances, Mitsui Shipbuilding can be given priority, otherwise there is no need to discuss anything.
As a traditional labor-intensive enterprise, it is almost inevitable for Mitsui Shipbuilding to set up joint ventures in mainland China to reduce costs.
Electronic semiconductor industry
The electronic semiconductor industry under the Mitsui Consortium once flourished in the 1990s and occupied a leading position in the world.
In 1990, NEC ranked first in the world semiconductor industry with revenue of US$4.9 billion, Toshiba ranked second with revenue of US$4.8 billion, Sony ranked 11th with revenue of US$1.9 billion, and Mitsui Steel ranked 13th with revenue of US$1.5 billion.
The company's total revenue exceeds US$13.2 billion.
It's a pity...when the flowers fall and the spring passes, everything will never be the same again.
to this day
Mitsui Consortium has all withdrawn from the production of DRMA memory chips, leaving only Toshiba with some flash memory business. This is Toshiba's traditional strength, and it is now gradually declining.
The Mitsui Consortium intends to sell this part of Toshiba's flash memory business to Atlantic Jinko Group to participate in Atlantic Jinko and share the steady flow of monopoly profits.
Specific details require in-depth negotiation.
For the Wang Fund, the flash memory patent pool held by Toshiba is of incomparable value. If combined with the patent pool held by the consortium, a high patent wall will be formed to prevent future competitors from entering this field.
.
The benefits are self-evident.
Wang Yaocheng is now considering the Mitsui Consortium's proposal on how to participate in large-scale resource investments.
Previously, the investment plan for steel production enterprises proposed by the Mitsui Foundation was rejected as expected, and the Royal Family Fund had no intention of investing in the steel industry known as Sunset Industries.
Even Nippon Steel, the world's leading steel company, has no appeal to royal funds.
Wang Yaocheng is considering the iron ore enterprise. Mitsui Consortium has been in this field for decades and has a profound foundation.
It is the major shareholder of BHP Billiton, Vale and Rio Tinto, the world's three largest mining companies, and holds a large amount of equity in the top 20 mining companies in the world. It is the invisible king in this bulk resource field.
Royal Fund has no foundation in this field at all. According to its steady strategy and its friendly relationship with the Mitsui Foundation, it is the best choice to hold a small number of equity interests in mining giants.
It is a financial investment in the complete sense, just a little brother who gets dividends.
As a glorious reborn, Wang Yaocheng couldn't afford to lose that person, nor did he want to make this money.
As the world's largest importer of iron ore, China now has ore pricing power completely in the hands of the world's three largest mining companies. It is experiencing the pain of constantly plundering wool and losing tens of billions of dollars every year.
Now is just the beginning. As the domestic economy takes off, the demand for steel has increased significantly. Domestic production has exceeded the 1.1 billion tons mark, accounting for more than half of the world's production.
As a result, as mining giants increase steel prices one after another, hundreds of domestic steel companies are struggling to operate, and most of their profits are plundered by mining giants, amounting to tens of billions every year.
US dollars.
Faced with this, what can Wang Yaocheng do?
next few days
The second round of cooperation negotiations between Royal Fund and Mitsui Foundation went smoothly and many cooperation intentions were reached.
The group returned to Hong Kong with a full harvest. The specific cooperation projects were broken down into various companies. It was like a precision instrument running in an orderly manner to digest the results achieved previously.
Hong Kong, Royal Center Building.
Wang Yaocheng instructed Deputy Director of the Secretariat Hao Wei to say;
“This time we are cooperating with Japan. During the negotiations, they brought up a large magnetite project. Australia Mineralogy is interested in seeking strategic investors to jointly develop the magnetite in Preston, Western Australia.
This project has aroused my interest and I hope to learn more about it.
This time, I hope that you will take the lead in setting up an inspection team to Australia to make preliminary contacts with Mineralogy and other mining companies interested in cooperation and compile a detailed feasibility report.
In terms of team members, the secretariat will mobilize capable personnel and gather relevant experts from the Hong Kong Guanfengyun Research Institute to conduct detailed demonstrations of the project.
The consortium itself does not have talents with experience in the steel and metallurgical industry. This is not a big problem. Domestic partners can provide experienced engineers and senior experts who have been engaged in the steel trade for a long time, and Nippon Steel will also provide professional guidance."
Deputy Director Hao Wei responded with a solemn expression; "Chairman, please rest assured. I will hand over the work in hand now and start preparing for an inspection team to Australia immediately. I will complete the tasks you have delivered with high quality."
"Very good, notify the Hong Kong Guanfengyun Research Institute and ask them to produce an analysis report on the current situation of the world steel industry in the near future to make a professional interpretation of iron ore supply and resource distribution for decision-making purposes."
"clear."
"Don't be in a hurry to come back this time. Investigate it thoroughly for me. Go to the mines below for a run-through, including resource storage, railway transportation and dock conditions, and let me know everything clearly."
"Please rest assured, Chairman, we will make it clear."