Rebirth 2008: I Can Make Money Reading - Chapter 296
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Chapter 296

The strategic department of Xinghai Group rushed all night and overnight, and on the second day, handed over the more detailed information of Hydro Aluminum Company to Muyang.

After reading the information, Mu Yang has a deeper understanding of Hydro Aluminum Company. At the same time, it is necessary to divide the cooperation area, such as the Huaguo market, which is definitely not within the scope of cooperation, mainly the European and American markets, and which markets are included, but also specific details. talk.

In the same way, Assem and his entourage analyzed Xinghai Group's aluminum alloy automotive sheet factory. If they cooperate, what they need to come up with and what they will get; if they do not cooperate, how much will they lose.

Everything is built on a win-win basis.

At present, the global aluminum alloy automotive sheet competition situation is severe, especially after Xinghai Group and the international market share.

Last year, the global demand for aluminum alloy automotive sheets was about one million tons, of which Novelis had a market share of almost 50%, or about 500,000 tons;

Followed by Hydro Aluminum Company, although it is the second place, its market share is only about 18%, 180,000 tons (about 930 million US dollars, this company's annual output value was about 8.11 billion US dollars last year, aluminum alloy automotive sheet just one of the businesses);

The third is Alcoa, with a market share of only about 15%.

Alcoa is a behemoth, founded in 1888, the world's third largest aluminum producer after Rio Tinto and RUSAL. The main products include rolled products, wheels, forgings, fastener systems, precision castings and solutions in the field of building systems. The technology also involves other light metals, including titanium, nickel and superalloys.

On May 7, 2007, Alcoa launched a $27 billion hostile takeover of Alcoa, aiming to merge into the world's largest aluminum producer.

However, the final acquisition failed.

Therefore, in the aluminum alloy automotive sheet business, if Xinghai Group cooperates with Hydro Aluminum Company, in addition to its biggest rival Novelis, there is also Alcoa.

Now, Xinghai Group is going to come in to grab the cake, after grabbing the domestic ones, and then grabbing the foreign ones.

The domestic market is not large. According to Muyang's previous estimates, it is estimated that around 2011, the demand for aluminum alloy body panels in my country's auto industry will be about 70,000 tons.

At present, Xinghai Group's annual output of aluminum alloy automotive plates may reach 200,000 tons, and it plans to build a second phase of 300,000 tons.

According to the current sales price and the current sales situation of Xinghai Group, the domestic market share is about 50%, mainly because Yiqi and Shangqi have not been settled.

In overseas markets, Porsche has already been acquired, but it is impossible for Porsche to purchase all of them from Xinghai Group, and supply risks must also be considered.

In other words, the sales volume of Xinghai Group is currently only about 80,000 tons per year, which is still far from 200,000 tons per year.

Xinghai Group wants to sell the remaining 120,000 tons of production capacity, mainly from overseas markets, but currently there is not much progress in the international market, which is also where Mu Yang is worried, unless he is willing to cut prices, but doing so, It must be sued by peers, malicious competition destroys the local market, and the local country will increase tariffs on Xinghai Group.

The demand for aluminum alloy automobile plates is increasing. Next year, the domestic demand for aluminum alloy automobile plates may reach 100,000 tons, and the global demand for aluminum alloy automobile plates will reach 1.4 million tons.

In this way, Xinghai Group's annual output of 200,000 tons is quickly digested, but it is still far from Muyang's market share target, seeking a strong partnership to increase global market share and make more money.

If Xinghai Group is willing to cut prices, and domestic auto factories are willing to increase the use of aluminum alloys instead of steel, the demand for aluminum alloy automobile plates will increase sharply, in order to achieve small profits but quick turnover.

But Muyang felt that small profits but quick turnover was too laborious, and it was not necessarily more profitable than before. Moreover, it was impossible for auto factories to replace aluminum alloy automotive plates all at once. Design update is a long process.

On August 3, the third day at nine o'clock in the morning.

Assem and his entourage came to the old company of Xinghai Group again.

Mu Yang had been waiting for a long time, and the two sides started the real negotiation in the conference room.

Acem explained the advantages of its own company, which sales channels and technical advantages it has in the world that Xinghai Group does not have.

After he finished speaking, he went straight to the topic: "Mr. Mu, I suggest that we cooperate to establish a new aluminum alloy automotive sheet factory, you will provide the production line and technology, we will provide funds and personnel, and be responsible for sales and after-sales. As for the division of shares, We can discuss it later.

As for the technical authorization alone, he can't get much money. Mu Yang has already rejected him, so he can only establish a new company in partnership, and make money and share it with everyone.

"It's not impossible to cooperate. Then, how much do you think our production line is worth and how much is the process technology worth? Let me reiterate that I will not sell process technology and production line drawings." Muyang is not opposed to cooperation, process technology and The formula is not sold to Hydro Aluminum, it is only licensed for use.

But with such cooperation, it is inevitable that the equipment of the original aluminum alloy factory of Hydro Aluminum will be eliminated.

Then, the staff of Hydro Aluminum Company must understand the process and learn how to operate the equipment. It cannot be said that it cannot be operated without the Chinese staff.

In the cooperative factory, Hydro has the right to use the process, but does not have the right to transfer the process or use it in other factories. Of course, Muyang will not open the core process.

If Hydro imitates the device, it is considered an infringement, and these details must be clearly explained.

"What if Xinghai Group will develop better processes and production lines? If it is replaced, will it cost extra?" Assem must take this into consideration. If Xinghai Group is not responsible, then in the future , the factories they cooperated with fell behind.

Of course, this cooperation is an exclusive cooperation. In the aluminum alloy automotive sheet project, Xinghai Group will no longer cooperate with other companies to produce aluminum alloy automotive sheets. The same is true of Hydro Aluminum Company, and the two parties have established an alliance.

However, except for the aluminum alloy automotive sheet project, there will be no restrictions.

"Mr. Assem, since we have cooperated, of course we will also be responsible for the follow-up technical optimization and equipment improvement. You don't need to pay additional fees, we need to win together." Mu Yang replied, if the other party is asked to pay additional fees, then the other party will pay more. Certainly not, "but if improvements to the plant and others are required due to technical optimization and equipment improvements, Hydro needs to be responsible."

"this is necessary."

"Then let's talk about how much this equipment is worth?" Mu Yang nodded and continued,

"A production line, which is about 40 million US dollars, can produce 20,000 tons of aluminum alloy automotive plates per year.

In the next year, we can plan to produce 600,000 tons per year, which will require 30 production lines to meet the international market demand, grab orders from competitors, and, due to the advanced equipment, use less labor and less energy consumption , less failure rate, etc. Our production cost is three hundred dollars / ton lower than the conventional one, and the comprehensive cost is four or five hundred dollars lower. This 600,000 tons saves 180 million to 300 million dollars. "

Muyang replied that the production cost of a production line is 70 million yuan, or more than 10 million US dollars, but it is made by himself.

Therefore, the price of the equipment must be based on the market price, which is almost 40 million US dollars.

Earlier, Li Shufu of Zheli Group asked Muyang how much a production line cost. Muyang said it was 120 million yuan, which was also exaggerated.

But it does not mean that 120 million yuan can be bought.

Even if it is 40 million US dollars, which is equivalent to 272 million yuan, Muyang will not sell it.

Equipment is one thing, craftsmanship and technology are another.

"Okay, the difference is not big, and we will estimate it at the end." Assem's expression was indifferent, but he was very happy in his heart. It was not expensive. Sure enough, things in Huaguo were cheap. "What about investing in technology? How do you want to value it?"

Asem has estimated the equipment of Xinghai Group~www.mtlnovel.com~ It does use less manpower and material resources, and various advantages, it is no problem to save three hundred dollars per ton in the comprehensive cost.

Xinghai Group has seized the market with excellent material properties and favorable prices. Hydro Aluminum Company must have a serious impact. Last year, it sold 180,000 tons, but this year may not be able to reach it. The market share will drop from 18% to 15%. the following.

If you don't cooperate, be optimistic. Based on the annual sales of 150,000 tons, Asem will make an annual profit of about 255 million US dollars.

If they cooperate, it will only be necessary to cooperate with the annual sales of more than 500,000 tons of aluminum alloy automotive plates. The proportion of shares is too low, so it is better not to cooperate.

According to Mu Yang's tone, it is unlikely that Hydro Aluminium wants to take a dominant position. They can choose other partners, but Hydro Aluminium requires at least 40% of the shares.

If it owns 40% of the shares and sells 500,000 tons of aluminum alloy automotive plates annually, plus the cost savings of $300 per ton, Hydro Aluminum can earn 1.57 times the previous net profit, which is about 1.5 times more. billion dollars.

If it can sell more than 600,000 tons, the profit is 1.88 times that of non-cooperation, and it will make an extra 230 million US dollars.

In this way, there is a need for cooperation.

Of course, if the two sides do not cooperate, under the pressure of competition from Xinghai Group, it is more pessimistic. Hydro Aluminum Company may sell less than 100,000 tons of aluminum alloy automotive plates a year, and it may not make money.

600,000 tons, for Hydro Aluminum Company, is to increase the market share from 18% to 50%, which is not a difficult task.

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