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Chapter 590 Carrots and Sticks

more than two hours later

The Boeing 747 special plane has flown 2,000km eastward and entered the vast Indian Ocean. In the 30,000-foot-high air conference room, the special meeting on the iron ore project has also come to an end.

The related topics are arranged rigorously and orderly, and the work allocation is also clear and organized. Basically, there is nothing to explain.

Wang Yaocheng smiled and encouraged a few words, and then announced the adjournment of the meeting, allowing everyone to enjoy a delicious lunch and rest for a while before landing at the Abu Dhabi International Airport in Dubai, United Arab Emirates, in more than an hour.

"Staff officer, He Wei and Hulkinson, the three of you come to my study. Jianfei, you will come with me."

"Okay, Chairman."

Wang Yaocheng said hello to everyone, stood up and left the conference room, followed the stairs leading to the second floor to the dedicated study room, and said to the beautiful flight attendant Kayla next to him; "Kaila, it makes me happy to see you.

, please bring us some pre-dinner fruit and drinks."

"Okay, partial chairman, you will only leave your love to the blonde girl, and give me the cheap compliments."

"I love you too. I have dreamed about you in my dreams."

"Come on boss, is that a nightmare about the dark night?"

"Haha, I just like your cleverness."

After making a few jokes casually, Wang Yaocheng watched the slim and slim Keira turn away and couldn't help but smile knowingly.

Kayla, an African-American girl, has been serving on the special plane for more than 14 years. We are very good friends. We usually make a few gentle jokes to adjust the atmosphere, and we get along very harmoniously.

For Wang Yaocheng, whose career spans the world, he flies around Europe, Asia and North America all year round. He spends more time with the flight attendants than his wife, and has a closer relationship than ordinary colleagues.

When Jessica, the last flight attendant, got married, Wang Yaocheng personally came to give blessings and presented a Cessna small plane worth 230,000 US dollars. Jessica hugged him and kissed him wildly in excitement, and the groom was even a little jealous.

"Come on, everyone, sit down and talk about what you are doing." Wang Yaocheng saw several people arriving one after another, and asked everyone to sit down.

Han Jianfei was the last to leave and closed the door. He found a seat on the sofa and sat down, placing a thick stack of information on the coffee table.

"President Hao, how is the situation in the domestic steel industry? How are your discussions with domestic steel manufacturers and traders going?"

When Hao Wei heard the chairman's order, he quickly sat on the sofa with half his butt straightened, and reported with a rigorous expression;

"Well, Chairman, their demand for high-grade iron ore is still very strong, especially Baosteel Group, Taiyuan Iron and Steel Group and Wuhan Iron and Steel Group, which are committed to producing high-value special steel and stainless steel rolled sheets, and they have a strong demand for Simandou iron ore.

The project is unanimously optimistic and can afford a higher premium.

Through contacts, I discovered that domestic steel companies have an endless demand for high-quality iron ore, and their appetites are terrifying.

However, due to factors such as restrictions on superior approval of foreign investment projects, as well as its own financial capabilities and lack of international investment experience, it is difficult to carry out large-scale foreign resource investment. It is completely tied up and there are not many eye-catching projects.

On the contrary, some private enterprises have a particularly positive attitude, such as Shagang in Zhangjiagang, Weiqiao Group in Shandong Province, as well as Valin and Haicang. They actively contacted us and wanted to join forces to go overseas, hoping to establish long-term and stable import channels.

As international bulk resources become more and more popular, their mood becomes even more urgent.

Most of China's participants in the "long-term agreement" negotiations are state-owned enterprises. In 2006, the share of iron ore supplied by the three major mines at the "long-term agreement" price was mostly in the hands of state-owned enterprises, and large and medium-sized private enterprises could get very little.

This has resulted in vicious price hikes and competition between each other. The "long-term agreement" price of iron ore has increased by 37% on the basis of the previous year, and many private enterprises still cannot get this price.

Therefore, state-owned enterprises that own a share of imported iron ore resell it at a higher price, earning huge profits that are even higher than the production of steel products. As a result, the price of iron ore has skyrocketed, even reaching 60% to 75%, and all kinds of chaos.

Our group's price reduction and profit concessions eventually made this reselling trend intensify.

Many large state-owned enterprises did not focus on steel products, but resold imported high-quality iron ore to make huge profits, and instead used domestic iron ore of worse grade, creating an incredible and strange phenomenon."

Wang Yaocheng was shocked when he heard this. He tapped his desk gently with his slender fingers, thought about it and sighed deeply and said;

"Sigh... The chaos in the country must have been seen by the three major mines, and they clearly know that there is sufficient room for price increases. Negotiations for iron ore next year will definitely be more difficult. Our country is too big, and steel companies

There are too many, and trying to adopt a unified approach to the outside world is like trying to catch fish in a tree, and it is simply impossible."

"Who says it isn't?"

After Hao Wei became the president of Australia's FMG Resources Company, he conducted in-depth and detailed research on the steel industry. Now he can be said to be an expert, and he can see the various shortcomings more clearly.

"The China Iron and Steel Association convened a meeting of member companies to unify the standard of negotiation. Before the meeting was over, the three major mines knew the rather secret inside story. You must know that these are leaders of very large state-owned enterprises!

The inside is so riddled with holes that it falls apart with just a push of your hand.

There were repeated orders from above not to resell the share of imported iron ore, but the iron ore ships were sold out as soon as they arrived at the port, and no company even listened.

A business can easily generate profits of hundreds of millions of dollars. If I can really control it, I would rather believe that a sow can climb a tree.

The members of the China Iron and Steel Association are all ministries and enterprises, and there are also many provincial enterprises. They have deep roots and are not afraid of offending people. It is difficult for an idle organization like the China Iron and Steel Association to be designated as one that cares neither about people nor money.

For us, it is not cost-effective to continue to give away profits, and we hope that the chairman of the board can pay attention to this issue."

"Hehehe..."

Wang Yaocheng smiled when he heard this, thought for a moment and said, "President Hao, our Royal Family Fund is involved in the field of steel resources. We have innate capital advantages and industrial integration advantages. We are familiar with international capital operations, and our investment projects have also achieved substantial returns.

But I have a word of warning;

Don’t cover your eyes because you are lost.

Royal Family Fund does not expect to make large profits in the field of bulk resources. Our original intention is to balance market supply, balance market prices, add an import channel for domestic steel companies, and benefit millions of industrial workers.

Making big money is not our goal. Whether state-owned enterprises resell their share of iron ore or participate in investments, the large profits earned make the company money, and a considerable part of it will benefit industrial workers. This is in line with our original intention.

.

It is impossible for a small FMG alone to solve the industrial chaos. What we can do is to face the strong demand for iron ore in China and quickly increase our supply capacity.

I believe that the wisdom of the domestic government will be able to solve this problem well.

Therefore, the next step is to win this West African iron ore project. In terms of volume, this should be the largest single iron ore project in the world. It is of high grade and easy to develop on a large scale.

The only difficulty is that a large amount of money is needed to build railways to solve the transportation bottleneck problem.

And this is precisely our strength. Backed by China's strong infrastructure capabilities, we have nothing to fear.

Moreover, China Railway Corporation’s railway project in Australia has come to an end, and China Harbor Group’s terminal project has also come to an end. I have found a new battlefield for them to use their strengths. These guys must be very happy.”

Hearing what the chairman said, several senior executives present exchanged glances with each other, showing admiration on their faces, and said;

"We are not only overjoyed. We have helped them open up markets in Southeast Asia and Australia, and now we have also opened up the African market. With Royal Fund, they can make money and have projects to work on. I think they will be overjoyed."

"Yes! Their boss wants to invite our chairman to dinner and has mentioned it countless times."

"I understand this, and I've also told you so."

Wang Yaocheng smiled and waved his hand and said, "I only have one mouth and one belly, so how can I get enough to eat? Let's get back to business. The Royal Family Fund has developed to the point where it is now powerful, so it is necessary to feed back the society.

The iron ore resource project is the cornerstone to ensure the stability of the domestic steel industry. It is a project undertaken by the consortium voluntarily and voluntarily. No matter how difficult your difficulties are, you must ensure that you win the Simandou Iron Ore Project in Guinea.

The staff officer is my designated person in charge of security in Africa. I will not only equip you with armored vehicles and tanks, but also training aircraft and helicopters. You must ensure the safety of the iron ore project and give me a steady stream of iron ore.

Can we transport it out?"

The staff officer suddenly stood up, with eager excitement in his eyes, and gave a straight military salute: "I am reporting to the chairman, as long as I have one breath left, I will protect the iron ore project and continuously deliver iron ore. To this end,

We will go up to the sword and go down to the sea of ​​fire, so please don’t worry.”

"good."

Wang Yaocheng was overjoyed, stood up, patted the strong shoulder of the staff officer, and said happily: "I thought that so many years of pampered life had wiped out the ambition in your heart, but I didn't expect that you still have the iron blood of a strong man.

Makes me very satisfied.

Hammer has been operating in South Africa for more than three years. He is an excellent commander and completely trustworthy. However, he does not have the ability to command large-scale operations above the company level. You are sent here just to take on the heavy responsibility.

You will shoulder an extremely difficult task, but you must act in the name of a notorious mercenary. This huge psychological gap needs to be overcome by yourself.

I will not let you shed blood or tears, and will try my best to provide sufficient military equipment and logistical support.

However, in the face of ubiquitous dangers, you need to pay a huge price including your life. I hope you have a correct understanding of this and consider the difficulties more and more comprehensively."

"I understand, I promise to complete the task."

"Okay, very good."

Wang Yaocheng turned to Wilkinson and said, "Standard Bank of South Africa has selected several powerful partners who are also very influential in the South African government and various countries in Southwest Africa. The Royal Fund needs their influence to resist all kinds of criticism and strangeness."

It is up to you to take the lead in this matter and carry out deep binding of interests.

In addition, finding suitable newspapers and TV stations in Southwest Africa for acquisition is a mandatory requirement for the promotion, packaging and beautification of the iron ore project. This matter should also be left to the bank. Is there no problem?"

Wilkinson stood up and said with a serious expression, "Boss, please rest assured that there are no obstacles for us to acquire media companies in Africa. The vanguard group has done a lot of work on this and paved the way forward, and we can launch acquisitions at any time."

"The soldiers and horses are not yet moved, but the food and grass are first. Then don't wait for my personal participation. Telegraph the person in charge of the advance team and others to start the acquisition immediately. The publicity and public opinion work that will follow must keep up and create a good society for Simandou iron ore investors."

image."

Wang Yaocheng made a decision with a wave of his hand, thought for a moment and then said: "Contact relevant parties in China, don't they have an African medical team? We will also send several to Guinea by then, and we will pay for the expenses, and... well

Don't these old black uncles like to ask for money and things? We organize a batch of cheap products from home, shirts, plastic slippers! T-shirts! Combs, small mirrors, etc., hand them out during events.

These gadgets are not worth a lot of money, but they are very effective.”

Han Jianfei wrote quickly in his notebook, recording the chairman's important decisions one by one. In addition to admiration, he was extremely impressed.

This carrot and stick strategy works so well, it would be a pity not to be a black-hearted businessman.


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