bullyxtreme Chapter 38
Chapter 38
Yang Mo stayed at the Rongchang Iron Works all day long. The iron company's financial situation had deteriorated extremely. Wages had been paid at one-third of the standard for three consecutive months. People in the factory were in disarray, and employees were leaving every day.
In terms of technical equipment, Yang Mo's eyes lit up, including a 1900mm slab continuous caster, a 2050mm hot rolling mill, a 2030mm cold rolling mill, sintering furnaces, coke ovens, ironmaking blast furnaces, steelmaking converters, continuous casting, hot rolling mills, etc. The entire process of rolling and cold rolling is basically the most advanced equipment of this era.
Yang Mo spent the longest time in the technical department. Through communication with technical staff, he also gained an intuitive understanding of the cutting-edge metallurgical level of this era.
Chen Rongchang's original intention to find Yang Mo was because he heard rumors about Daquancheng, and he was able to get the workers back from the police station without any effort last night. He wanted to use Yang Mo's energy to let the financial company pay attention to Rongchang. The iron factory should not push too hard and win some buffer time. There is no thought of revitalizing the operation of the iron factory. The funds are exhausted, the supply of raw materials is not available, and as long as the blast furnace is stopped, there is no other way but bankruptcy and liquidation!
Now looking at the attitude of this young man, he has a targeted understanding of the core assets and financial status of the iron plant. What surprised Chen Rongchang is that this young man is not only familiar with the corporate management process, but also knows the production process of the steel plant well, and even knows the cutting-edge metallurgical technology. Their understanding is no less than that of the technical staff at the ironworks.
Back in the factory director's office, Yang Mo lit up a cigarette and fell into deep thought like an old monk in meditation. All the hardware of Rongchang Iron Factory perfectly met his requirements, but he was almost at a loss as to how to help Rongchang Iron Factory get out of the current predicament. …
After pondering for a long time, Yang Mo suddenly raised his head and asked: "Boss Chen, I know that Rongchang Iron Factory is your life's work. How much are you willing to pay to help him survive this crisis?"
Chen Rongchang thought for a while and said: "As long as we can survive this crisis safely, I am willing to sell 30% of the equity of Rongchang Iron Works!"
Yang Mo smiled lightly and said: "Boss Chen, let's think about it in a different way. How much capital do you think is needed to help Rongchang get out of trouble?"
Chen Rongchang thought for a while and then replied: "It needs about 1500 million!"
Yang Mo smiled and said: "I'm afraid 1500 million can only allow you to resolve the loan dispute of the financial company and temporarily restore normal production order. It can't even restore the normal supply of raw materials, let alone the subsequent technology development costs. Capital is gradually Li, who do you think will be so kind at this time? Invest 1500 million in exchange for 30% of your equity, just to share the difficulties with you?"
Chen Rongchang showed a slight embarrassment and said: "If we can inject 2000 million at a time, 40% of the equity can be negotiated. With this 2000 million, I am confident to lead Rongchang out of the predicament!"
Yang Mo looked at Chen Rongchang who was swearing and smiled without saying a word. Chen Rongchang explained: "Rongchang's valuation of 5000 million is reasonable. The investment in fixed assets such as land, factories, and equipment exceeds 6000 million. This does not include the investment in technology development. Although we are involved in a loan dispute with the finance company, our receivables are enough to repay the loan from the finance company!"
Yang Mo stood up and smiled: "Then I wish Boss Chen can deal with the contract trap as soon as possible, collect the receivables and resolve the loan dispute!"
Chen Rongchang stood up in a hurry and tried to persuade him to stay: "Mr. Yang, stay! Now that the matter has come to this, I won't hide it from you. Rongchang has indeed reached the end of its rope. Gui Lao has contacted many banks and forced us to keep our capital chain." The supply contract cannot be completed if the company is broken. As long as we can keep Rongchang, it doesn’t matter whether we have a controlling stake or not. I hope Mr. Yang can help!”
Yang Mo pondered for a moment and then said: "Rongchang Iron Works needs to invest at least 3000 million to get out of the current predicament. In business, no one will be willing to invest huge sums of money to transfuse a factory that is on the verge of bankruptcy at this time, unless..."
Chen Rongchang asked eagerly: "Unless what?"
Yang Mo paused and then said: "Unless the expected return from Rongchang far exceeds the risk, in fact, it is just a yard and wharf, it is not worth investing a huge amount of money + offending the ghost guy. Looking at the entire Xiangjiang, we have the ability to compete." There are only a few people practicing in the ancient times!"
Chen Rongchang's eyes dimmed. Since Rongchang fell into crisis, he has begged his grandfather and grandma everywhere. He has exhausted almost all the ways of mortgage loans and equity financing. This is always the case in shopping malls. There are many people there when the icing on the cake is there, but how many people are there to help in times of trouble?
In fact, Chen Rongchang was on the verge of giving up several times. If he persisted, he would eventually be unable to complete the supply contract. With compensation for breach of contract and snowballing loan shark interest, he had no choice but to go bankrupt, but he couldn't swallow this breath.
Yang Mo looked at Chen Rongchang, who was a little downcast, and suddenly changed the topic and asked: "I wonder if Boss Chen has heard of the Wharf anti-takeover case?"
Chen Rongchang nodded and said: "Of course I have heard of it. I'm afraid no one in the whole of Xiangjiang doesn't know that Li Chaoren teamed up with the Charter King to fight against the British foreign companies..."
At this point, Chen Rongchang seemed to suddenly realize something, and asked in surprise: "Mr. Yang, do you mean to ask them for help?"
Just after I asked, I felt ridiculous: If you are not a relative or a friend, why should others help you?Rongchang Iron Works is not a Wharf and does not deserve the help of such a big boss...
Yang Mo seemed to have read through Chen Rongchang's thoughts and said with a smile: "Of course, just one Rongchang Iron Works is not worthy of such a big shot. If Rongchang Iron Works holds some kind of internationally leading patented technology for high-strength alloy steel, , it just so happens that this high-strength alloy steel can be used to manufacture marine steel for the hull structure of seagoing ships and inland waterway ships!”
Chen Rongchang smiled bitterly and said: "How is this possible? If Rongchang had such patented technology, not to mention the major banks would compete to give me a loan, even big guys like the charter king would take the initiative to seek cooperation. Rongchang's crisis would be Solved!"
Yang Mo looked at Chen Rongchang and smiled without saying a word. Chen Rongchang continued: "Marine steel not only requires high strength and high toughness, but also requires a certain degree of low temperature resistance and corrosion resistance, as well as good welding performance. According to what I have learned, You know, looking around the world, there are only a few steel companies that can produce high-strength marine steel. How can a steel company with this patented technology invest in Rongchang?"
Yang Mo shook his head and said: "It's not a stake in Rongchang, it's a merger. Mr. Chen should know the value of this patented technology!"
Chen Rongchang nodded and said: "If, as Mr. Yang said, the patented technology is leading the world, then its value is indeed immeasurable, but I still don't understand, how can such a company acquire Rongchang Iron Works?"
Yang Mo pointed to the tip of his nose and smiled: "Because I am the actual controller of the company that owns this patent!"