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Chapter 289: Reasons for Selling
Taking the wine glass, Lin Kaifeng thanked him and smiled faintly, "Are you curious about why the DW Chemical Group, a large and powerful company, wants to sell the photoresist business?"
"Curious indeed."
Joseph said frankly: "I just can't figure this out. Even if DW Chemical Group wants to sell its photoresist business, it won't choose now."
Joseph and Lin Kaifeng belong to a community of interests, so there was no beating around the bush and he asked Lin Kaifeng directly why he placed the focus of solving the problem on DW Chemical Group.
Why would the other party agree to the acquisition so readily?
The conflict between Northern Machinery Group and several major photoresist companies in the island country caused a sharp rise in global photoresist prices.
This also brought about a round of market value increase for DW Chemical Group's photoresist business.
The overall market value has tripled.
Lin Kaifeng drank the red wine in his glass and said slowly, "We have an old saying in Longguo, 'different trades are like different mountains.' Joseph, you are an elite in the retail department store industry, and you know nothing about the semiconductor industry, especially the photoresist industry. Perhaps in your opinion, the global photoresist price will rise, and the market value of companies related to this business will also make a lot of money."
"It's understandable to think so, but you only see one side. You don't see the industry reshuffle hidden behind the rise in global photoresist prices."
Joseph frowned and wondered, "Will there be a new shock in the photoresist market soon?"
Lin Kaifeng put down his glass and said, "As we all know, the photoresist companies in the island countries control the majority of the global photoresist market, 70% of which is in their hands, and the remaining 30% is occupied by European companies and American companies."
"This is a fact, and the newspaper has already reported on it."
Joseph interrupted, “But what does this mean?”
"It represents the absolute pricing power of the island nation in the photoresist market."
Lin Kaifeng said: "Longguo's photoresist enterprises are still very weak and cannot provide strong production support for my Northern Machinery Group for the time being."
"If I lose this battle, the group's development will have a domino-like adverse reaction. This chain reaction will directly impact my country's semiconductor industry, and all companies related to the group will also fall into a cold winter."
"Without the Northern Machinery Group as a leader, not only will the semiconductor industry be unsustainable, but the home appliance industry, the automobile industry, and mechanical processing will also face threats from the island country's products."
Behind one business are countless businesses. The Northern Machinery Group alone supports hundreds of Chinese enterprises.
Hundreds of thousands of workers.
Lin Kaifeng has invested heavily in the semiconductor field.
The collapse of the semiconductor sector will inevitably affect the group's other businesses.
The island nation's home appliances, cars, industrial machinery...
A variety of commodities will enter the Dragon Country market with unprecedented force.
Near future.
The most imported goods in Dragon Country are neither American goods nor Western goods, but goods from island countries.
The U.S. market cannot accommodate island countries.
The huge market of Dragon Country with nearly one billion people will surely become a new business opportunity for island companies.
Under the influence of a series of good news, will the island's photoresist and semiconductor companies rest on their laurels after their current success?
The answer is absolutely no.
Today, the island countries' photoresist companies are able to attack the Northern Machinery Group together.
Will these companies launch a new round of blockades and blackmail against semiconductor companies in other countries and regions tomorrow or the day after tomorrow?
The island country completely dominates the semiconductor market, and semiconductor chip manufacturers around the world must rely on the island country for their survival.
Can other photoresist manufacturers, mainly DW Chemical Group, withstand the island country's step-by-step expansion?
"understood."
After Lin Kaifeng's detailed explanation and analysis, Joseph suddenly understood.
No wonder DW Chemical Group would sell its photoresist business, which still has good development momentum.
If the Northern Machinery Group collapses, the island country's photoresist companies will further strangle other chip companies.
It will also extend its reach into other photoresist markets.
Joseph is a senior executive of DW Chemical Group, and he will definitely sell the photoresist business with rising market value at this time for a good price.
If I don’t sell it now, I’m afraid there won’t be another chance to sell it at a high price.
Someday.
The island country's companies are preparing to acquire the global photoresist business, and it is impossible for them to offer a high acquisition price like Lin Kaifeng.
This will inevitably push prices down to a level that cannot be lowered any further.
at the same time.
A discussion meeting on tomorrow's negotiations is being held at the DW Chemical Group headquarters in the same city.
The island nation, like the United States, is an economic society with highly developed capital.
A capital game that follows the principle of big fish eat small fish, and small fish eat shrimps.
The major photoresist companies in the island country gathered together for no reason and put pressure on the Northern Machinery Group, maliciously raising the export price of photoresist in an attempt to ban Lin Kaifeng.
Ordinary people cannot understand the reason behind the incident.
In the eyes of business elites and corporate leaders, the purpose is clear.
The island country is not targeting Longguo’s semiconductor business, but Lin Kaifeng’s machinery group.
The U.S. government's tolerance for island country companies has reached an intolerable level.
In the past two years, the White House has successively introduced restrictions on refunds, specifically targeting products from island countries.
The good days of island country products in the United States are completely gone.
To continue to maintain economic growth, the island nation must create new business opportunities.
Where are the new business opportunities? The answer is obvious.
In order to develop the economy, the Dragon Kingdom opened its doors.
There is no need to worry that the island country will set its sights on the Dragon Country market. American and Western companies are also making plans to enter the Dragon Country.
Northern Machinery Group relies on its geographical advantages.
We have been carrying out business layout in Longguo for several years ahead of overseas capital.
It has established a reputation as a product that has won widespread praise, and has strong official support behind it.
Whether it is a price war or other product confrontations, the island country will not be able to completely defeat the Northern Machinery Group.
The only way to defeat them is to cause internal strife within the Northern Machinery Group.
The semiconductor industry in which Lin Kaifeng invested heavily has been completely paralyzed, which means that the core business has collapsed, and other businesses will also be affected.
Through investigation, it was learned that Lin Kaifeng built two large industrial parks in Pengcheng Special Economic Zone, one of which was a semiconductor industrial park.
The industrial park can accommodate tens of thousands of workers, and a large wafer factory is about to be moved to the semiconductor industrial park.
Lin Kaifeng invested huge amounts of money in these projects.
If the project fails, the Machinery Group will be only one step away from collapse.
The next morning.
Joseph drove Lin Kaifeng to the headquarters of DW Chemical Group.
Negotiations officially begin.
Represented DW Chemical Group to contact Taylor, Vice President of Business of Lin Kaifeng Group, and offered a sale price of US$150 million.
Joseph, who accompanied Lin Kaifeng to the negotiations, changed his expression slightly.
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