Chapter 437: A $200 Million Investment Agreement(1/2)
After all, it is Lin Ping's hometown, and Mu Yanfei has no nonsense.
The next day, he came to the county town and met with all the leaders for a meeting, Mu Yanfei called North America.
Instead, I called Port City directly.
If you want to build a ready-to-wear processing factory, you can buy the most advanced equipment in the world today.
Moreover, for a garment factory, the most advanced equipment is nothing more than a sewing machine.
However, for Lin Ping's original intention of trying to help poverty alleviation, the best way is to provide relevant parts factories in the county town.
Textile factories are responsible for processing fabrics, and hardware factories are responsible for producing various metal buttons and zippers, and even various metal accessories and decorations.
In addition, there are other plastic button manufacturers.
In addition to the above, the leather factory should also be within the planning.
Only with the above supporting enterprises can the clothing factory become bigger and stronger.
There are currently no private large clothing factories in the domestic market. If the clothing styles that people can accept can be designed, once the expressway is opened to traffic, the clothes can be sold all over the country.
The huge market with a population of one billion is an extremely attractive cake for clothing companies.
When Mu Yanfei came from the capital to this small county town, everyone's clothes were almost the same.
Only in the capital, you can occasionally see young people wearing a little more fashionable dress.
But even the young people in the capital were lagging behind Hong Kong City for many years.
This time, Lin Ping wanted to invest in a clothing processing factory, while Mu Yanfei wanted to participate in the investment.
During the whole day, Mu Yanfei made dozens of calls.
Contact all the relevant machinery of supporting factories and their quotations.
If you open a large clothing factory with 5,000 people.
Then the supporting investment of the entire project will reach HK$35 million.
And this is just the purchase price in Port City.
The shipping to this small county town, plus the construction investment of the factory, all of them are calculated to cost at least 40 million yuan.
However, this amount of money is not worth mentioning to Lin Ping.
Selling a little arcade can earn the investment amount of the entire project.
"I plan to invest too. How many shares are Boss Lin going to give me?" After getting everything done, Mu Yanfei called Lin Ping.
Lin Ping, who received the call, was drinking water frantically while gasping for breath.
Just now, Lin Ping ran back and forth more than a dozen times on the top of the mountain where he was about to build a house.
Today, the county organized more convoys and sent more red bricks, steel bars and cement.
Seeing that there was no place to be placed in the fields, Lin Ping directly asked everyone to move some of them and sent them to the top of the mountain where he was about to build a house.
Although the mountain is not high, everyone carries more than 100 kilograms, and they are still quite tired from above and below.
Lin Ping stood aside and watched, feeling a little sad.
Although I paid my salary, the people here are not my employees.
Everyone comes here because of helping.
Lin Ping was embarrassed to watch others work, so he took the initiative to join in and carry some bricks to the top of the mountain.
But after more than a dozen trips, I was as tired as an old dog.
When Lin Ping heard the phone ringing in the room, he ran back to answer the phone.
"Such a small project is just a small clothing factory.
Although mosquito meat is also meat, it is too small.
How could you be interested in such a small project?" Lin Ping asked curiously.
Although Lin Ping also knows that if a clothing factory wants to open up the market, it must design unique clothing styles.
With his grasp of history, this small clothing factory is likely to become the largest clothing processing company in the entire North China market in the future.
Looking around the country, Lin Ping does not have this luxury for the time being.
After all, the county cannot support such a huge enterprise.
If you want to supply the national market, you may need a huge industrial park as support.
This clothing industrial park must meet at least 200,000 jobs.
Moreover, the daily consumption of cloth is more than two million cloth.
Such a large consumption cannot be met by transportation alone.
Unless there is a railway crossing the county town, it is impossible to fight against other companies by car transportation alone.
Before others start their own business, take the lead in a market gap.
Once it was the late 1980s and early 1990s.
After a large number of clothing processing factories on the market started, the cost of transportation alone will limit their competitiveness with other companies.
Clothing processing plants in coastal areas will inevitably have stronger competition conditions.
A large population is concentrated in coastal areas, and it is produced and sold on site.
Moreover, it is backed by the harbour, and various raw materials are cheaper.
Every piece of clothing you produce first needs various raw materials to be shipped here from other places.
Then the workers processed it into ready-made clothes. After the ready-made clothes were processed one by one, they would take a car to send it to the coastal areas for sale.
This going back and forth will inevitably increase costs.
At that time, the transportation cost will also cause a company to sharply reduce its sales or even go bankrupt on the spot.
After all, in the clothing industry, once you win the red eye, the net profit of each company is 3% to 5%.
Lin Ping did not consider the investment in the county so long.
The current investment is just to hope that during this difficult time, the entire county will have more opportunities.
"I have asked about the quotations for processing equipment in upstream and downstream industries. If it is a garment processing factory with a scale of 5,000 people, including the surrounding supporting enterprises, it can provide about 8,000 jobs.
After counting the entire project, it only requires HK$35 million for procurement of processing equipment. If the cost is transported here and installed in place, the cost may rise to 40 million.
I am optimistic about the domestic ready-to-wear market. I believe that as the opening up gradually relaxes, everyone will become more and more picky about clothing.
The aesthetic vision will gradually improve, and everyone will become less satisfied with the same clothes.
So I plan to invest, but now I am more in North America.
I don’t have much money now, so it depends on how many shares Boss Lin is willing to give me.” Mu Yanfei reported all the results of dozens of phone calls today to Lin Ping.
Unexpectedly, Mu Yanfei had already reached this point in doing things.
Lin Ping just wanted to provide a work processing factory for two or three thousand people to the county during the gap period.
This factory can live until the early 1990s.
In this way, it can help at least thousands of families, and in the early 1990s it can become ten thousand households.
Everyone has a historical mission, and the mission of the clothing processing factory he is about to invest in is to make every employee in the factory earn ten thousand yuan within five to eight years.
It is better to let everyone work and get a little reward than to just throw money.
Although your own donation can save you a lot of money.
But if this continues, it will breed a laziness for many people.
Once people rely on donations, they will lose their passion for life.
Fighting for life will naturally become a slogan!
"Since you are interested, the project will be handed over to you with full operation. Since you want to play, I will give you 200 million US dollars in starting funds!
If you make this clothing factory the number one in Asia production, sales and profit margin within three years!
I will give you 51% of the equity of this clothing factory!
This is equivalent to a betting agreement.
I invested 200 million US dollars in the entire project, and you don't have to spend a penny.
You just need to make your own efforts and work hard to increase your market share.
Remember, within three years, you will become the largest clothing manufacturer in Asia!
If you can do all this, this 51% equity will belong to you.
I believe that if you can really do all this, the 51% equity in three years may be worth $2 billion." Originally, Lin Ping planned to do a short-term project, but Mu Yanfei insisted on investing in it, and tomorrow she would simply turn the short-term project into a long-term project.
Mu Yanfei didn't expect Lin Ping to be so generous, and he could make 200 million US dollars at one move.
For a labor-intensive clothing company, 200 million US dollars is a huge investment anywhere in the world.
To be continued...