Extraordinary Genius - Chapter 123 – Constant Good News
The reopening of school also gave Feng Yu time to take care of his businesses.
The research and development of the 2nd generation humidifier had entered the final phase. The engineers from the Aviation Factory had said that the research would be over after a few more tests and there should be no problems. Within a week, he could send the research results to the Motor Factory for them to start production.
Feng Yu was pleased by this news. The earlier the development was completed, the earlier he could capture the market. Seems like in a few days’ time, he got to invite Fu Guangzheng over to discuss the exportation contract.
The Machinery Company also had good news. Their first batch of new tractors was sold out, and they also attracted a lot of new orders. Their tractors’ performance was better and cheaper than the Dong Fang Hong tractors. Even fools knew which tractor to buy.
The orders for plowing machines and seeder were also increased, and their market share was growing. This made the Machinery Factory from Lin Province to be semi-shutdown, as no ones were buying their products.
Based on this development speed, the sales for the Machinery Company would be over 300 million, and they will have profits of at least 60 million. This amount of profits was something that they don’t even dare to dream of in the past. Even the Machinery Factory no longer belongs to the City Government, but the City was still the major shareholder of the company, and the dividends would be much higher than previous years’ profits. There was even a significant amount of taxes too.
Zhang Ruiqiang had used the Machinery Company as a pilot project to import high tech machinery and technologies from the Soviet Union and get the investments of a Hong Kong businessman. This was considered a significant achievement and his status in the City Government improved. Now, he can implement the reformation of some State-owned enterprises, and there will be lesser objections to his plans.
Feng Yu was not satisfied with the 300 million RMB sales and profits of 60 million RMB. The Machinery Company was being myopic now and did not care about the research and development of the new technologies, to be the leader in this industry. If this carries on, the Motor Company would be back to square one after 5 years.
Of course, Feng Yu would not let that happen. Within 5 years, he wants to be the major shareholder of this Machinery Company, and when that happens, he will call the shots and do what he like with the company.
And this was not too far away. This year, Feng Yu will have the opportunity to increase his family’s stake by more than 1 time!
Feng Yu was so confident because of Kirilenko who was in Moscow.
Kirilenko had called Feng Yu yesterday and told him that he had news about the high-temperature steel furnace.
This piece of news really excites Feng Yu. High-temperature steel furnace was just a furnace used to produce refined steel which was used to make molds.
In China, there was similar furnace too but this furnace could not withstand such high temperatures and could not produce many kinds of specialized steels.
In China, at least 3 big factories wanted this High-temperature furnace, and the Motor Factory was one of them. Feng Yu could only import 1 furnace, and Kirilenko had quoted him 3 million Rubles.
This type of large high-temperature steel furnace was using the technologies that were few years old, but a brand new furnace was priced at more than 10 million Rubles. The price for a second-hand furnace would also be more than 30%.
Feng Yu immediately contacted the Motor Factory and asked them if they wanted this furnace for 5 million Rubles.
Li Shiyou agreed without any hesitations. So what if this was a used furnace. So long it was still in a working condition, they would able to produce products which they could only imagine before. The material costs would also be lower, and they would be able to recoup this amount within 2 years.
Feng Yu had wanted the Motor Factory to absorb part of the taxes which amounted to about 300,000 Rubles. But what surprised Feng Yu the most was that Li Shiyou said that he will take care of the taxes. The taxes could be waived off as he will import it under the name of the military.
Feng Yu was shocked by the authority of these state-owned enterprises. Having a military background was too useful. Even the Motor Factory was no longer a military installation, they still can waive off the taxes!
What Feng Yu wanted was the ultra-high power electric furnace. This type of furnace had high technical content and was priced above 40 million Rubles. But because it was so expensive, Kirilenko dared not to sell it to Feng Yu.
For items that cost a few million, Kirilenko could easily collaborate with the factory’s manager to sell it. But it was too tricky for high-tech machinery that was more than 10 million Rubles. Especially this type of furnace was used to manufacture military products, and the risk was too big for Kirilenko to illegally sell it to Feng Yu. He said he got to wait a while more.
In fact, Feng Yu wanted to tell him that he was willing to pay more for that furnace and the technology behind it.
China does not have the technology to build this type of ultra-power electric furnace. It can be said that any factory that owned this furnace, the factory would be the most high-tech in China.
After spending tens of millions of Rubles, even if the technique were not known, the factory would also be willing to waste materials to figure out the technique and technologies!
Feng Yu told Kirilenko that he was willing to buy the technologies even if there were no machines. He does not want those military technologies. Those technologies used for non-military purposes will do. But the technologies must be considered advanced internationally, and he will give Kirilenko a right price for it.
In that era, the industrial technologies in China were too backward. Don’t say being compared to Europe or the US, they can’t even be compared to their neighboring countries. Many types of machinery in China at that time were imported from Korea and Taiwan.
If Feng Yu could purchase those technologies, he would keep those that were useful to him and sell off those that were useless to him. Not only he could benefit himself, but he could also increase China’s industrial technology standards. Killing two birds with one stone.
Most importantly, Feng Yu could increase his status in the leaders’ eye. It would be better if he could get to meet up with the senior leaders because of this. There was no harm knowing more people.
The Motor Factory paid 10% deposits and signed the contract. Feng Yu then informed Kirilenko to deliver the furnace and send at least 3 experts over. The salary will still be the same as the ones before. Of course, if more experts were willing to come over to work for Feng Yu, Feng Yu will also welcome them. The more, the merrier!
Talents are hard to find. If there were a few dozens of senior engineers from the Soviet Union working for Feng Yu now, his status would be different. With these experts, he would be considered a prestigious guest of the Provincial Government.
Kirilenko told Feng Yu that this time, he would at least send a dozen industrial experts into him! The previous 3 experts were living comfortably in China, and their meals and lodgings were even provided for by the Motor Factory. Every month, they were still able to receive salaries, much higher than what they were getting in the Soviet Union.
The last time, Kirilenko had contacted more than 10 experts, but most of them had a wait and see attitude. With the 3 experts doing so well now, the rest were willing to come over to work.
They could make a lot of money and still be doing what they do best. They would be able to send money back to their families. Their lives would be much better than working in the Soviet Union.
But these people had one condition, which was if the Soviet Union needs them, they will return immediately. The salary would be pro-rated to the day they left.
This made Feng Yu unhappy. Leaving work unfinished and returning to the Soviet Union? Then why should we still give them such good benefits?
Feng Yu countered offer to them that they would at least need to give a one month notice before they return to the Soviet Union. If not, they would have to pay a compensation of their 3 months salaries. Everything will be written in the contract.
Kirilenko passed Feng Yu’s message to the experts, and the number of experts that were willing to come over to China was reduced to 5. The rest wanted to monitor the situation longer.
Feng Yu told Kirilenko to contact those experts that were in poverty. Feng Yu don’t believe that these experts could resist the temptations of high wages!
One week later, the first prototype for the ultrasonic humidifier was developed!