Great Power Industry: You're a private company building an aircraft carrier?

Yang Guoqiang spoke forcefully, his gaze sweeping over everyone present: "If you guys don't have the ability, then give up your positions and let young people who dare to think and act make room for you!"

Upon hearing this, everyone present turned pale.

To do foreign trade, you can't do without the foreign affairs department, and they dare not offend Yang Guoqiang.

However, everyone usually gets along well on the surface, so why did Yang Guoqiang suddenly lose his temper?

“That’s right, Lao Yang is right.” Luo Guangrong finally spoke up: “We are walking a path that no one has walked before. Looking back won’t work. We must show the courage to reform! State-owned enterprises have the right to import, so why can’t private enterprises? Just because one is the biological mother and the other is the stepmother?”

Luo Guangrong spoke up, and his support was much stronger than Yang Guoqiang's, after all, he was Yang's direct superior!

"Only through competition can we develop and progress; our economy has developed through competition!"

Luo Guangrong continued, "Now, we are very happy that Laiyang Factory, a private enterprise, is developing very quickly. If you guys are not convinced, then catch up with it!"

Finding a way to catch up is the right path.

Backstabbing and tripping others up are the most despicable things!

"That's right, Leader Luo is right!"

Zhou Yongkang almost applauded. With Luo Guangrong's words, let's see who dares to trip him up again!

"Leader Yang, you just said you wanted to come up with a new solution. Could you tell us about it?" Zhao Changgui asked.

My suggestion that Ansteel act as an import agent is a new approach, isn't it? Since you've denied it, then come up with an even better solution!

I refuse to believe you can come up with any new ideas!

"Finding a solution is your steel company's business, what does it have to do with our foreign affairs department?" Yang Guoqiang rolled his eyes at him.

So you had no other choice after all! And you were so self-righteous just now! If it weren't for the huge difference in rank, Zhao Changgui would have wanted to retort.

"However, the Laiyang factory has come up with a new solution for us."

"any solution?"

"Our country's economy is developing rapidly, and the demand for iron ore will also increase rapidly," Yang Guoqiang said. "However, our own iron ore is of low grade and difficult to mine, so we will definitely buy a large amount of iron ore from the international market in the future, and the quantity will increase exponentially."

Everyone nodded.

Even though the steel industry has experienced some overcapacity in the past year or two, the demand for steel continues to grow with economic development, and iron ore will definitely be imported in large quantities in the future!

"However, we have little say in the procurement of iron ore. Even if we sign long-term agreements, we may not be able to get a good price, which is very disadvantageous to us."

Iron ore is the second largest commodity after crude oil, and globally it is mainly controlled by three major companies: BHP Billiton (Austria), Rio Tinto, and Vale (Mexico).

Before the 1950s, iron ore supply was plentiful and spot trading was common. Starting in the 1960s, the island nation's economy took off and the steel industry developed rapidly, making it the main iron ore seller in Australia. In order to strengthen cooperation, the two sides began to sign short-term contracts, which gradually developed into long-term contracts.

Under long-term contracts, the quantity and price of iron ore will be locked in for ten or even twenty years.

This is clearly disadvantageous to the seller, since the Americans keep printing money, the dollar is constantly depreciating, and its purchasing power is getting lower and lower.

Therefore, in 1975, iron ore exporting countries established an organization of iron ore exporting countries, abolishing the previous long-term agreements and replacing them with short-term contracts!

In the 1980s, a negotiation mechanism for iron ore emerged, and as it matured, the pricing method returned to long-term agreements.

However, these are all agreements between island nations and South Korea. The East does not have such a mechanism. When the East buys iron ore on the market, the price is much higher than the price under the long-term agreement. How can it compete in the international market under such circumstances?

Of course, we don't need to consider that now, since there aren't many companies that can export steel.

But what about the future?

When Yang Guoqiang mentioned this, everyone frowned. Yes, when we buy iron ore internationally, the more we buy, the more expensive it is. We're definitely being ripped off. But what can we do if we don't get fleeced?

"Leader Yang, so how can we break this status quo?"

"Yes, Director Yang, does Engineer Qin have any insightful suggestions?"

"We're going to buy mines overseas!"

How to avoid pitfalls in iron ore procurement? Just buy the mine yourself!

After 07, China's iron ore imports surpassed those of the island nation, making it the world's largest importer. China then sought to dominate iron ore pricing. At this point, the island nation and South Korea interfered. Negotiations had barely begun, and prices hadn't even dropped significantly before they accepted the offer!

What gives them their confidence? Of course, it's because they own mines! When prices are high, they can still profit.

To break this monopoly, you need to own your own mine!

“The world’s iron ore reserves have long been monopolized by three major companies. Where are we supposed to find mines?” Zhao Changgui asked.

“Mineral development has a long cycle. If it just starts to turn a profit and then an unexpected upheaval occurs, we could lose everything!”

Listening to these people's concerns, Yang Guoqiang couldn't help but sigh inwardly: Sure enough, these guys are typical examples of those who lack ambition and have no pioneering spirit whatsoever! If we want to develop, we still have to look to private enterprises!

In the North, there is a heavy machinery factory.

"The rolling mill at Laiyang Steel Plant was designed and manufactured by our First Heavy Machinery," Zhao Guangsheng said as he accompanied a group of South Koreans on a tour of the entire production line.

"Our company, First Heavy Machinery, specializes in designing and manufacturing various heavy industrial equipment, and rolling mills are our specialty!"

"If we sign the contract, can you produce the rolling mill within three months?" Kim Jong-geun, president of Dongguk Steel, asked.

"No problem at all."

"If you are unable to produce it, you will need to pay double the amount, which is four billion US dollars."

Zhao Guangsheng's heart skipped a beat. The compensation was really high. But... that's how international contracts are. If they can't be manufactured, they have to compensate. This is also a way to reassure customers.

"This needs to be reported to the factory manager and decided by the higher-ups. Let's make it clear first that these three months only refer to the production equipment time, excluding transportation and installation."

"Of course. We hope to sign the contract as soon as possible. How about we pay a 10% deposit upfront?"

No matter what business you do, a 10% deposit is too little. But this business is very expensive, with a total price of two billion US dollars. A 10% deposit is two billion US dollars. Even if we don't pay the balance, we can still make a lot of money.

Therefore, Zhao Guangsheng did not hesitate much.

"Okay! I'll wait for your reply. I hope we can sign the contract before I board the plane tonight, and you should also hurry up with production."

“This…” Zhao Guangsheng was stunned: “Mr. Jin, a contract of this level must be signed in a more formal manner. We can arrange to sign it at the Great Hall of the People and invite the top leaders as well. That would be much more prestigious!” Zhao Guangsheng felt that it was too rushed.

"No need, we don't care about those things. We want to sign the agreement as soon as possible and start production immediately!"

"Alright, rest assured, we will definitely not let you down!" Zhao Guangsheng had no choice but to agree. It would be even better if no one else was there; he deserved the most credit for this!