Chapter 127: Rain and Dew

"Competing with developed countries on cost, and competing with countries with low labor costs on technology—this is the advantage of the Torch Group in the global lighter industry in the future!"

Gu Xiguang opened the plan. The first page was the preface written by Li Dongling for the Torch Company. This is the foundation for the Torch Company to establish itself and compete with a group of lighter manufacturers in Japan, Korea, Europe, and America.

After glancing at the plan in his hand, Gu Xiguang looked at Li Dongling. Today, he and He Heng came together, and just now he remained silent, actually expressing support for Li Dongling.

The Foreign Exchange Department was full of concerns about Dongling High-Tech's overseas channel plan. If 200 million US dollars really went down the drain, a group of people including He Heng, even if they didn't directly bear the responsibility, would definitely be demoted to the second line.

But the Economic and Trade Commission didn't have this worry. Gu Xiguang is not in the same department as He Heng. He didn't speak just now, actually secretly supporting it.

If Dongling High-Tech is determined to acquire overseas sales channels, this matter can be directly promoted with the support of the Economic and Trade Commission and Hanxi. But now Li Dongling threw out this plan, which made Gu Xiguang not quite clear about what his junior brother, who was four years younger than him, was playing at.

Gu Xiguang's attitude toward Li Dongling today is not only because both graduated from Hanxi Jiaoda. Even if they are from the same school, at his status, this relationship can only be considered a stepping stone for acquaintance.

He is in the Economic and Trade Commission, high in the temple, but he also needs the support of people below the temple. The appearance of Li Dongling and Dongling High-Tech, coupled with the background of Hanxi Jiaoda, is most suitable for Gu Xiguang.

Putting these thoughts away, Gu Xiguang looked at the plan in his hand. At first, he didn't pay much attention, but the more he looked, the more energetic Gu Xiguang became, and his waist straightened up.

Roughly reading the plan for establishing the Torch Group, the words "big move" couldn't help but appear in Gu Xiguang's mind. It was absolutely a big move. Even in the planning department, he rarely saw such a big move.

Gu Xiguang, who has also operated and led major projects, can distinguish the difference between empty talk on paper and feasible major projects!

This Torch plan analyzed the current market and pattern of the global lighter industry. Japan and Korea occupy technical advantages, while lighter manufacturers in America and Europe have market advantages.

And what is the advantage of the upcoming Torch Group? The most direct advantage is human resources and cost advantages. Compared to manufacturers in Japan, Korea, America, and Europe, Torch's technology might not be as good, but because of salary reasons, this makes Torch's production cost of lighters far lower than that in Japan and Korea.

Besides this, Torch has the biggest advantage, which is being able to gather the entire lighter industrial chain in one place. This is an advantage that manufacturers in Japan, Korea, America, and Europe cannot have. Those manufacturers cannot let component suppliers revolve around them. But if the Torch Group can do this with the help of the Economic and Trade Commission, Hanxi Municipal Government, and Pingyang Municipal Government, this will reduce production costs by another large margin!

Gu Xiguang was thinking about the feasibility of the Torch Group. After He Heng finished reading the plan, he only had two thoughts: the establishment of the Torch Group can provide more than 60,000 employment positions, and the other is exporting to earn foreign exchange, and it is a lot of foreign exchange!

Even according to the forecast in the plan, after the Torch Group is established and production capacity starts to explode, the Torch Group is expected to export 1.5 billion lighters annually within three years, export more than 5 billion within ten years, and export more than 10 billion within fifteen years!

No one knows what the world will become in fifteen years, but He Heng can see the scenes in three or five years, and he will still be in his position then.

According to the Torch plan, in the early stage, Torch mainly produces mass-market lighters. In the country, the selling price might only be one or two yuan. Exported to overseas, the selling price will also be lower than the 4 US dollar selling price of Japanese and Korean lighters, priced at 1 to 2 US dollars. But even if it is only 1 or 2 US dollars, with an annual overseas shipment of over 1 billion lighters, the foreign exchange earned will also exceed hundreds of millions of US dollars.

And lighters are consumables. As long as the market is occupied, so many can be sold every year in the future, and even the market share will become higher and higher!

"Director Gu, do you think this plan is feasible?" He Heng asked Gu Xiguang in a low voice after finishing the last page of the plan.

Compared to this big plan of the Torch Group, Dongling High-Tech's overseas acquisition plan is not very eye-catching. Although those 200 million US dollars still make He Heng a bit worried, with the Torch Group project, he can at least go back to Yanjing to hand in his work.

To be honest, the Foreign Exchange Department in this era belongs to a strong department, but it also depends on who the object is. For those companies that want to spend foreign exchange, the Foreign Exchange Department is the big daddy who says one thing and one thing in their heads.

But facing companies that earn foreign exchange, especially private companies like Dongling High-Tech that can earn a lot of foreign exchange, the Foreign Exchange Department really has to coax them!

He Heng really didn't want to come on this trip to Hanxi. It is true that 200 million US dollars going down the drain would make He Heng eat a hanging, but if this trip delayed Dongling High-Tech's business and the foreign exchange income earned next year shrank, then the first one to be unlucky would still be him, He Heng.

Now that there is the Torch Group, He Heng has room for maneuver and can let go of some operations. As for whether to report to Yanjing immediately, he still wants to ask Gu Xiguang for his opinion.

Glancing at He Heng, Gu Xiguang deliberated, "According to my experience, the establishment of the Torch Group is very hopeful. However, this matter still needs to be verified by experts before it can be determined. After all, the early investment in this project is really too large!"

Gu Xiguang didn't say the words to death, and also expressed his attitude to Li Dongling. He supports the establishment of the Torch Group.

"Dongling High-Tech hopes that the Torch Group will be guided by the Economic and Trade Commission, assisted by the Foreign Exchange Department, and jointly invested and established by Dongling High-Tech, Shangguan Town Component Factory, and Hanxi State Investment. The first phase of the project will invest 1 billion yuan, and Dongling High-Tech will contribute 400 million yuan to obtain 40% of the equity of the Torch Group!"

Li Dongling said. For the Torch Group, Li Dongling did not expect to earn much money, but as long as it develops, it will definitely not lose money. Returning the capital is just a matter of time, the difference is just earning more or less.

Establishing the Torch Group is mainly to pull departments and units like the Pingyang Municipal Government, Hanxi Municipal Government, Economic and Trade Commission, and Foreign Exchange Department to Dongling High-Tech's side.

Hearing Li Dongling's words, Gu Xiguang naturally understood the meaning. The Shangguan Town Component Factory represents the Pingyang Municipal Government, Hanxi State Investment represents the Hanxi Municipal Government, and then giving the names to the Economic and Trade Commission and the Foreign Exchange Department, the establishment of the Torch Group, Pingyang and Hanxi have tax revenue, and the relevant department leaders have political achievements. It can be said that rain and dew are evenly distributed. This means is not exquisite!

As for what Dongling High-Tech got, Gu Xiguang can think that from the day the Torch Group is established, Dongling High-Tech will truly become the local snake of Hanxi. With the existence of the Torch Group, the entire Hanxi Municipal Government, and even some departments in Yanjing, all stand by Dongling High-Tech's side. Whether it is outside the province or local monsters and ghosts, if they want to move against Dongling High-Tech, they have to weigh the consequences!

"This plan is not complete. It seems that Junior Brother, you have left a backhand!"

Gu Xiguang raised the plan in his hand and said to Li Dongling with a smile. In the plan, although it said to compete with Japanese lighters, how to compete was mentioned in one stroke, especially some document pages involving technology and promotion were drawn out. Obviously, Dongling High-Tech left a hand.

Li Dongling just smiled at this and did not deny it. If the entire plan was handed over, including subsequent technical development, promotion plans, etc., then whether it was the Economic and Trade Commission or some people in Hanxi, they could completely set up another stove and compete with the Torch Group. Li Dongling didn't want to cultivate an opponent. He should leave a hand, and he must leave it.

"I think this matter needs to be reported to the department. In addition, the Torch Group plan also needs to be notified to Pingyang and Hanxi Municipal Government to discuss the agreement!"

Gu Xiguang said to He Heng, which means that both of them are willing to support this project and also hope that this project will become one of the achievements on their resumes!

"And the matter of Dongling High-Tech acquiring the Falan Braunge electrical shopping mall."

Li Dongling did not forget to remind the two. Hearing this, Gu Xiguang and He Heng nodded silently, obviously supporting Dongling High-Tech's overseas acquisition plan. The Torch Group is now more important to them, as well as the Economic and Trade Commission and the Foreign Exchange Department, than this matter.

Even, if the Torch Group succeeds, this matter will become one of the classic guidance cases of the Economic and Trade Commission. In the future, the Economic and Trade Commission's right to speak in the Yanjing department and even in various parts of the country will greatly increase. Who can't distinguish between heavy and light?!

Li Weimin, Luo Junwu, and Yao Zhengru, who were waiting in the lounge, saw the two walking out of the conference room in a hurry, asked for a separate room, and then started making phone calls one after another. When the three were still confused, they were invited into the conference room and saw the plan.

More than half an hour later, reacting similarly to Gu Xiguang and the two, Luo Junwu gave instructions to his secretary, and after Zhang Xiaocheng arrived at Dongling High-Tech, he also walked out in a hurry. Li Weimin directly called the provincial government.

"The people from Hanxi State Investment will arrive here in an hour and a half!" After the call, Li Weimin sat down, looked at the plan, and still couldn't help but have his heartbeat accelerate.

"Hoo!"

"Dongling High-Tech has launched another satellite. I don't know how many people will be unable to sleep tonight!"

Yao Zhengru said to Li Dongling. Reading the plan several times back and forth, this kind of big-move project made him feel surging. With the entire Shangguan Town as a chessboard, wrapping the entire Shangguan Town in it, when the Torch Group is built, the entire Shangguan Town will have to start revolving around the Torch Group.

Even, Yao Zhengru felt that it wouldn't be long before Luo Junwu and the Pingyang Municipal Government would submit an application to the Hanxi Provincial Government to turn Shangguan Town into Shangguan District, directly under the jurisdiction of the Pingyang Municipal Government.

(End of chapter) ===== CHAPTER 128 =====