Chapter 121 Investing in the Mainland
Liu Zhicheng just said that donating a cement road is fine, but this is a port, it can not only be used for civilian purposes, but also for military purposes.

Although the central government has given the Shekou Industrial Zone sufficient autonomy, this involves the deep waters of reform and opening up. Director Yuan cannot give a direct answer or refuse directly.

"Mr. Liu, the current plan for the Shekou Industrial Zone is to build up the industrial zone first. In the early stages, the export of goods will go through the ports in Hong Kong. However, if there is a need to build a port in the future, I will first consider Mr. Liu's opinion."

"Yeah, I thought too far ahead." Liu Zhicheng nodded.

I feel that I am a little too impatient. The reform and opening up has just begun and it is impossible to achieve everything in one go. We can only wait until the Pengcheng Special Economic Zone is established.

"Mr. Liu, what the Shekou Industrial Zone needs right now is a manufacturing factory. With a factory, you will have everything. Otherwise, everything is just wishful thinking." The accompanying President Qin said on the side.

"Invest in a factory?" Liu Zhicheng glanced around and said, "Whether the land is flat or not is not a problem. The main thing is when can the water and electricity be connected?"

Although, he knew that the Shekou Industrial Zone could eventually solve this problem, the Pengcheng Special Economic Zone would be established this year, and a year later, the first residential building project in cooperation with Hong Kong would be pre-sold in Hong Kong.

But we must maintain normal logic. We can't just agree to invest when we don't have any hardware conditions.

President Qin and Director Yuan looked at each other and then said, "Mr. Liu, this is the current situation. At present, the industrial zone has no funds, so we are preparing to apply for a loan from a bank in Hong Kong. As long as the funds are in place, we guarantee that the infrastructure will be built within three months."

"But you also know that banks in Hong Kong generally have risk control, so we hope Mr. Liu can invest in Shekou first, so that we can apply for a loan from the bank."

Liu Zhicheng smiled and said, "Okay, so I plan to invest in a factory here that specializes in making electric fans."

"Electric fan?" Director Yuan was a little disappointed, so he asked, "Mr. Liu, what is the production capacity of this electric fan?"

"I plan to build a production capacity of 300 million units. Of course, in the early stage, we will mainly purchase parts from Hong Kong for assembly, and then gradually purchase parts domestically."

Liu Zhicheng did not intend to make money from low-end industrial products such as electric fans, but the amazing thing was that this was the first home appliance in which he could produce most of the components himself.

Now under the extreme operating model, the cost has been reduced to the lowest level. If we continue to produce in Hong Kong, it would be a bit of a waste to use the production to produce fans with the current labor cost in Hong Kong.

Of course, there is not much room for main profit, and only by moving to Shekou where labor costs are cheap can more profits be earned.

Moreover, electric fan production is a labor-intensive industry and is most suitable for the current Shekou Industrial Park.

With the advantage of extremely high cost-effectiveness, Chigo electric fans are expected to export orders of 150 million units this year, and the orders on hand are increasing year by year.

Therefore, it is not an exaggeration to say that we invested in an electric fan factory with a production capacity of 300 million units.

"300 million electric fans? Are they all for export?" Director Yuan asked with his eyes lighting up.

"Of course, can I still sell it in the mainland?" Liu Zhicheng said with a smile.

The policy in the early days of reform and opening up was to use domestic labor and land to build OEM factories and implement the "three-in-one" policy. However, domestic sales were not allowed and all products had to be used for export sales.

Unless it is a necessity that cannot be produced domestically, because such products have always needed to be purchased directly with foreign exchange domestically.

President Qin next to him was also shocked by the number. Millions of electric fans, even if each one earned one US dollar, the total could be as high as millions of US dollars.

"Haha, I said Mr. Liu is not a stingy person. Millions of electric fans are quite generous."

"Director Yuan, this electric fan is just the beginning. If the cooperation goes well, I will gradually move more factories to the mainland."

Director Yuan said: "Thank you very much, Mr. Liu, for your support!"

"Director Yuan, investing in building a factory is not just about infrastructure. What's more important is the workers, and they also need to have the corresponding qualities. I wonder how Director Yuan will solve this problem." Liu Zhicheng said again.

"Then I wonder what kind of workers Mr. Liu needs?" asked Director Yuan.

"For ordinary workers, it would be best if they have attended junior high school and can recognize most Chinese characters. We would need about 1000 people, among whom it would be best if there were about 100 people with a high school diploma or above." Liu Zhicheng said after thinking for a while.

Originally, Liu Zhicheng wanted to find a college student, but thought it would be a bit difficult, so he didn't even mention it.

"1000 junior high school students? 100 high school students?" Director Yuan was a little surprised. This was a very high requirement.

"My products are mainly exported to supermarkets in Europe and the United States. Once quality problems occur, the losses will be huge, so there are also requirements for the quality of my employees," said Liu Zhicheng.

Now Chigo's electric fans are mainly sold to North American customers. If the quality cannot be guaranteed, they will not come to build a factory in China even if the labor is free.

If you can’t guarantee the quality, you will lose customers. Even if you offer a higher salary now, you still need to ensure the quality of the talent.

The salary in Shekou is the highest, but it is definitely not higher than the labor cost in Hong Kong, so this will be Shekou's advantage in the next few years.

Junior high school students nowadays working in factories to screw in screws is equivalent to undergraduate students working in factories to screw in screws before time travel. Not to mention high school students. Therefore, in the next few years, in Shekou and even in the Special Economic Zone, the wages of many factories will be much higher than in other places in the mainland.

"Excuse me, what is the factory price of Chigo's electric fans?" Director Yuan hesitated for a moment, but still asked. He needed to know the specific value before reporting to his superiors.

"The factory price is around US$14," said Liu Zhicheng.

This is not a secret. There are many manufacturers in Hong Kong that export fans, and the prices are already very transparent.

"Then the annual export can be 4200 million US dollars?" Director Yuan could hardly hide his excitement.

I didn’t expect that the Shekou Industrial Zone, which had just been established and had not yet started construction, could get such an investment. As long as it is reported, it will definitely attract enough attention.

You should know that during this period, the total annual exports of the entire country were only more than 100 billion US dollars, most of which were crude oil and mineral resources.

Shekou, a small place of 10 square kilometers, can generate more than 4000 million US dollars in exports from the very beginning. It is impossible for the leaders not to pay attention to it.

"Director Yuan, the export can reach more than 4000 million US dollars, but a large part of the accessories still have to be imported from Hong Kong, such as the core motor of the fan. Unless there are enough talents here, it will be possible to gradually realize localized production." Liu Zhicheng had to remind again.

This is actually the development process of Chigo Fan in Hong Kong. In the beginning, they needed to purchase accessories, and it was a pure assembly workshop.

"I understand. I will report to my superiors immediately and ask them for the person." Director Yuan nodded.

Director Yuan has worked in the foreign trade department, so he naturally knows the importance of quality. Without enough highly educated employees, an enterprise cannot have long-term development.

"Okay, if the employees are ready, we can promise to basically achieve localized production of accessories within five years," Liu Zhicheng promised.

"Moreover, I can also consider transferring some of Hong Kong's other industries here. According to estimates, it will be no problem to export more than 100 million US dollars a year." Liu Zhicheng said lightly and continued to paint a rosy picture for Director Yuan and others.

But this is not just a pie in the sky, it is just a beautiful vision. Moreover, Liu Zhicheng knew that in the next few years, only Shekou could build wholly foreign-owned enterprises, so he attached great importance to the reform and opening up of Shekou.

"One hundred million US dollars?" Director Yuan's eyes almost popped out. This was far beyond their expectations. If Shekou won this project, who knows how much of an impact it would have on the whole country.

"Is what Mr. Liu said true?" President Qin on the side was also extremely surprised.

"President Qin should know that this 100 million US dollars of production capacity is really nothing to my industry."

The subsequent business details would naturally be negotiated by his subordinates. It had been planned to locate the electric fan factory in the mainland long ago, so Liu Zhicheng did not have much hesitation.

Shekou is a wasteland, so naturally there is not much to visit.

That afternoon, after Liu Zhicheng and Huo Haiqing selected the factory site, they returned to Hong Kong overnight.

The reform and opening-up policy in the mainland has just begun, and the relevant policies and supporting facilities have not yet been put in place. At this time, it is still not suitable for large-scale investment.

Even the fan industry is not a one-time relocation, but the annual sales volume is as high as tens of millions of US dollars. This level of export is enough to attract the attention of mainland leaders.

Shekou and Guangdong Province naturally attached great importance to it. In less than a week, they agreed to the talent conditions proposed by Liu Zhicheng.

At the same time, we accepted his donation of a cement road from Pengcheng to Shekou. As for the implementation of the donation of this road, it will be undertaken by the Yanxin Zhicheng Charity Foundation. Some things are better left at a separate level.

After receiving the news, Liu Zhicheng immediately formed a team headed by Liu Changhai, rushed to Shekou, and organized the construction of the fan factory.

With the letter of intent for investment from Chigo International and a phone call from Liu Zhicheng, the Bank of East Asia, which had a long-term partnership with Chigo International, made special arrangements and provided Shekou with a loan of HK$3000 million within three days for the infrastructure construction of the Shekou Industrial Zone.

It was February now. Although it was still the Spring Festival, the Shekou Industrial Zone did not stop, and Chigo International quickly signed an investment agreement with the Shekou Industrial Zone.

After the first batch of funds arrived, Chigo Electric (a newly established wholly-owned subsidiary of Chigo International in Shekou) immediately invited domestic construction companies to start building factories and office buildings.

Under the call of the power of earning foreign exchange, the construction speed was naturally very fast. The mainland construction team worked 24 hours a day, and the equipment did not stop. By the end of April, the standardized factory was fully built.

The construction efficiency in the industrial zone was also very high. Almost at the same time, water and electricity were opened in the industrial zone and the roads were built.

Let Liu Zhicheng witness what Pengcheng speed is.

As for the Pengshe Highway donated by the Yanxin Zhicheng Charity Foundation, since it involves many places (Pengcheng City has not yet been established), it may take some time, but it is already much better than before.

Chigo International also quickly relocated the equipment in the fan assembly workshop, starting with the most labor-intensive fan assembly line.

The first factory invested by Liu Zhicheng in China was officially established. He personally went to Shekou to attend the opening ceremony.

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(End of this chapter)