Chapter 968 Procurement Restrictions
In return, Liao Yi voluntarily agreed to increase the price of Longyuan's chip purchases from Wanhe by 20%, and promised to choose Wanhe's industrial control chips as much as possible among new products in the future to reduce purchases from other chip manufacturers.
The conditions given by Liao Yi are not bad. As a strong machine tool company, Longyuan Company is also something that Wanhe cannot ignore. Compared with Huayang Heavy Industry, Chen Hao, the head of Wanhe Electronics Company, is certainly unwilling to offend Longyuan Company. In addition to the trade-offs in interests, there is also a little bit of personal friendship in it...
However, the consequences of directly refusing to provide high-performance chips to Huayang are also relatively serious. Although Huayang is currently not as large as Longyuan Company, its development speed and potential are very considerable. What's more, the Xinghua Society behind it is also feared by Chen Hao.
He is the son-in-law of Liu Wanhe, the founder of Wanhe Group. Now he is the chairman of the group and has taken over the entire industry. Therefore, he has also heard about the affairs of the ancient Chinese Society.
Strictly speaking, he and Longyuan Company actually survived directly based on Zhong Yang, and their relationship with the three major groups is not close. It is precisely because of this reason that he is closer to Longyuan Company, which does not mean that he is willing to offend Xinghua News Agency, one of the three major groups.
A few years ago, Chen Hao almost didn't know that there was such a company, but in just a few years, it actually became an important customer of the company in the domestic civil market.
In a year, the total amount of industrial control chips purchased by Huayang Heavy Industry itself and its affiliated companies actually reached more than 80 million Huayuan. It was beyond Chen Hao's bottom line to be accepted by such a customer.
What's more, Chen Hao has also investigated it clearly. This Huayang Heavy Industry is simply the core industry of the Liu family and is the heart of Liu Haoran, the president of Xinghua News Agency. How dare he offend him openly?
When Liao Yi made a request to Chen Hao, he left some room for Wanhe Electronics. He did not ask Wanhe Company to completely stop supplying Huayang's chips, but only asked him to limit some high-performance chips. At the same time, he also added some constraints to ordinary industrial control chips. These constraints are enough to make Huayang and its affiliated companies' CNC machine tool production face the dilemma of shutting down work and waiting for materials from time to time.
"Chairman Chen, if it weren't for the serious matter, I wouldn't have troubled you. After all, interfering in the operation of other companies is a very rude thing. But this young man named Liu Yongzhuo is a very terrible opponent. Before, Liu Yongzhuo was only producing chemical equipment, and his machine tool company was still very weak."
"Now, he has made the machine tool company bigger. His goal is to repeat the same trick and squeeze our Longyuan Company." Liao Yi said frankly to Chen Hao. After all, the two have the same interests.
"Chairman Liao, you are too modest." Chen He said with a smile. "How can an emerging company pose a threat to your Longyuan Company?"
Liao Yi said: "Chairman Chen, I'm going to say that our Longyuan Company has been threatened by Huayang Heavy Industry. Huayang Heavy Industry has transferred CNC technology to hundreds of mid-stream machine tool companies, allowing these companies to produce very low-priced CNC machine tools, thus strictly squeezing our Longyuan Company's monopoly market."
"By the way, more than half of the chips used in the products of these Chinese companies come from your Wanhe Electronics Company."
"Haha. That's why we Wanhe has caused trouble for Chairman Liao." Chen Hao said with a slight smile. "However, I think these midstream and downstream companies can still obtain chips from our peers even if they cannot obtain chips from our Wanhe Electronics. As a chip supplier, we have no reason to adopt a differentiated policy for our customers."
"I did not ask Chairman Chen to adopt too many differentiated policies on the civil market. I just hope Wanhe can support our Longyuan Company at this critical moment. There was an allusion in ancient times called "The Lip and the Teeth Cold". If our Longyuan Company collapsed, I think maybe the next target of Xinghua Society is your Wanhe Electronics." Liao Yi said threateningly.
Not only will the state not oppose this kind of anti-monopoly operation, but also the International Economic and Economic Union. As for Zhong Yang, he never cared about such trivial matters.
But Liao Yi and Chen Hao made a living by this, they had to care about their own interests.
Chen Hao replied with a smile on his face: "I have fully understood what Chairman Liao means. As an old company, Wanhe will naturally stand with Longyuan Company. However, when it comes to how to restrict exports to other companies, I still need to discuss with my executives. I think Chairman Liao should be able to understand it?"
"I fully understand, Chairman Chen, I'll ask you about this. Please remember that this is not only a war between our Longyuan Company and Huayang Heavy Industry, but also a competition between us retail investors and the three major groups. Please." Liao Yi said, stood up and bowed deeply to Chen Hao, and then said goodbye and went back.
After sending Liao Yi away, Chen Hao called the sales director Kang Qishan and asked him to analyze whether the company should respond to Liao Yi's request.
After listening to Chen Hao's introduction, Kang Qishan said disdainfully: "Does Chairman Liao want to tie us to his chariot? Their Longyuan Company itself lacks the ability to innovate and cost control, but Liu Yongzhuo actually wants us Wanhe Electronics to help, which is too much."
"Director Kang, do you think what Liao Yi said makes sense?" Chen Hao asked.
Kang Qishan said solemnly: "I think there is at least one thing he said is unreasonable. As far as I know, Huayang Heavy Industry is a pure machinery enterprise and does not have any electronic technology department. Even the Xinghua Society behind it is centered on the shipbuilding industry."
"So what Chairman Liao said about the loss of lips and teeth is unfounded for us, Wanhe Electronics. Huayang Heavy Industry was very close to Xianzhe Technology Company in the past, and some of their industrial control chips were obtained from Xianzhe Company. If we do not provide chips to Huayang, Huayang Heavy Industry will increase the purchase of goods from Xianzhe Technology Company, which will pose a threat to our Wanhe Electronics."
"What you said makes sense," Chen Hao said, "However, the conditions that Liao Yi has offered us are very good. He promised that as long as we add a little obstacle to Huayang Heavy Industry in terms of chip supply, he can increase the price of Longyuan Company's purchase from us by 20%. According to this plan, we will not lose the customer of Huayang Heavy Industry, and we will not offend Longyuan Company. Why not do it?"
Kang Qishan said: "Chairman, you don't know. Chairman Liao came to us at this time because there is a very important competition between them and Huayang Heavy Industry. Both of them are developing new automobile stamping production lines. Huayang Heavy Industry signed an intent agreement with us a year ago, requiring us to provide them with industrial control chips for stamping."
"The stamping machine, robot, automatic mold change facility, etc. on each stamping production line requires a total of hundreds of different chips, with a total amount of more than 800,000 Huayuan."
"If we postpone the provision of these chips to Hanhua Heavy Industry, does it mean that Longyuan Company will be able to win this competition?" Chen Hao asked.
"I think that's the case," said Kang Qishan. "Although Hua Yang may also seek to obtain chips with the same performance from Xianzhe Technology, there will be troubles in terms of time and cost. However, if we do this, I think Hua Yang Heavy Industry will be very angry, which will affect our long-term cooperation."
"So. You can go to Dongguan now to try Liu Yongzhuo's mouth and see what his attitude is." Chen Hao said, "We can't be completely led by Liao Yi. But if the other party's reaction is not so firm, it is OK to help Longyuan Company appropriately."
In this way, Kang Qishan flew from Shanghai to Dongguan, stayed at the Emgrand Hotel, and invited Liu Yongzhuo to meet.
"Director Kang, can I ask, what is the reason for your company to make this decision?" Liu Yongzhuo asked with a calm expression.
Kang Qishan began to pretend to be stupid and said, "General Manager Liu, we are completely out of the need to stabilize the cooperation between the two parties. Please don't get me wrong."
Liu Yongzhuo smiled and said, "Director Kang, we have an old saying, "It's a secret saying that people don't say secret words. Wanhe is a well-known old-fashioned enterprise at home and abroad. Our Huayang Heavy Industry is now a little famous. It would be too childish to play with such a scheming between two such companies?"
"Sorry, General Manager Liu, I don't understand what you mean." Kang Qishan bit him to death, but refused to admit that he had any special intentions.
Of course, Liu Yongzhuo can also circle Kang Qishan very artistically, but this is not his habit. After all, Liu Yongzhuo is a high-tech person who likes to solve problems straightforwardly. He said: "Director Kang, let's talk about it. You came from Shanghai to Dongguan to talk to me about this matter. It's nothing more than telling us that Wanhe will not provide us with chips in time in the future. As for overall packaged sales, and 2% to 4% discounts, it's just a more crowning guise."
"We don't have such an intention. I think General Manager Liu may have been over-thinking." Kang Qishan said, but since he did not make a clear rebuttal or correction of Liu Yongzhuo's words, he actually just made accusation.
"Our country's small and medium-sized CNC machine tool industry will develop no matter what. Without Wanhe Electronics, we may not be able to find other chip suppliers. Is Wanhe feeling too good about doing this?" Liu Yongzhuo continued.
Kang Qishan still lowered his head slightly, looked humble, and said, "General Manager Liu, let me make a statement again, I think you have misunderstood. We, Wanhe Electronics, really hope to establish a good cooperative relationship with other companies. I came here this time with such a wish."
"But, your approach is clearly making things difficult for us. Who can't tell this? How can we continue to cooperate with you with your attitude?" Liu Zhi interrupted angrily.
Kang Qishan still looked like a candy and said expressionlessly: "General Manager Liu, you said we are making things difficult for you, and I can't accept it. However, if you think that both parties cannot cooperate because of our proposal, I can only say that this is a very sorry thing."
"Okay, Director Kang, put away your diplomatic rhetoric. As a sales director, it is very boring to pretend to be like this kind of diplomat." Liu Yongzhuo said in an understatement, "Director Kang. I can tell you clearly that we Huayang Heavy Industry will not accept this condition."
"If Wanhe Electronics cannot promise to supply us in time, then we will cancel all orders and no chip will be purchased from Wanhe."
"This is a very regrettable thing." Kang Qishan said. "We are very willing to cooperate with Hua Yang, but..."
"Nothing, but our conditions are very simple. We either promise to supply goods in time or terminate all cooperation between the two parties. Director Kang is asked to consider it himself." Lin Zhenhua said, stood up and said to Liu Zhi and An Haoyu: "Let's go. Let Director Kang calm down."
"General Manager Liu, please don't get it wrong." Kang Qishan said hypocritically, but did not stop Liu Yongzhuo and his party from leaving. He knew that commercial negotiations were not that simple. Liu Yongzhuo's departure was just a bluffing psychological tactic. The final decision on the outcome of the negotiation was their respective trump cards.
The conditions proposed by Kang Qishan to Liu Yongzhuo were strictly calculated.
According to this condition, Hua Yang will be subject to certain restrictions when purchasing chips, which will lead to a decline in competitiveness. However, if Han Hua rejects this condition and purchases chips from other electronic manufacturers as Lin Zhenhua said, the losses will be greater. Yasuhiro Miyaki believes that Lin Zhenhua understands the principle that the two evils are less serious.
On the other hand, Lin Zhenhua's threat to KHN is not very lethal. Hanhua purchased chips in a year of about US$100 million. This loss is affordable for KHN. This determines that Yasuhiro Miyako can hold on and with Lin Zhenhua and stand it until Lin Zhenhua can't hold on.
"Mr. Lin, are we really not talking to KHN anymore?" After walking out of the Yanshan Hotel, Liu Zhaohua asked Lin Zhenhua.
Without waiting for Lin Zhenhua to answer, Donnie Yen said first: "Of course we can't talk to them anymore. The Japanese bullied people and bullied them to grandma's house."
"But... we don't have the capital to fight them." Liu Zhaohua said.
Donnie Yen said: "Why don't you have capital? The world is not just KHN, one of them, produces chips. There are more chip manufacturers in the United States, Motorola, Texas, and Nortel. I don't believe that it cannot replace KHN."
Liu Zhaohua shook his head: "The price of American chips is much higher than that of Japanese chips, which will lead to a decline in our competitiveness. Also, our previous products were designed based on khn chips, and it would cost a lot of money to modify the design. In fact, the conditions proposed by khn are not to completely kill us at once. We can accept it first and then slowly adjust it."
"But..." Zhen Zifei is not a stupid person either. He is just a little tougher. He heard Liu Zhaohua's analysis and calmed down a little and said, "Old Liu, what you said makes sense, but if we are run by KHN like this, the industrial control system of the stamping production line will become a problem. If it really doesn't work, I can only change the design and change it all to use Spischer's industrial control system."
"Be prepared for any trouble." Lin Zhenhua said, "Xiao Zhen, you can work hard with your people and start adjusting the design immediately and making a backup plan. If KHN insists on not letting go, we will not be helpless."
"This is not troublesome, but if Spicher's plan is used, the overall cost will be high." Donnie Yen sighed and said, "Well, I should have thought of preparing a backup plan from the beginning. Putting the eggs in a basket is too risky."
"The main thing is that this basket is carried in the hands of others." Liu Zhaohua said, "If it is our own basket, it doesn't matter."
Lin Zhenhua nodded and said, "This incident is a lesson for us. This kind of core ff8 pieces are held in the hands of others. Whenever others want to pinch us, we can pinch us whenever we want. We are too passive."
Liu Zhaohua's eyes lit up: "Mr. Lin, are you planning to do electronics?"
Entering the electronics industry is something that Wei Jingwen, Liu Zhaohua and others have been calling for for many years. Wei Jingwen set up an electronics research institute in the Hanhua Research Institute, recruited a group of electronic information technology talents, and accumulated a lot of research results. He just waited for when Hanhua would set up his own electronics company.
At the group meeting, the issue of establishing an electronics company was repeatedly raised and discussed, but the executives unanimously agreed that it was still too early. For Hanhua, the electronics industry was a new venture, which required a huge investment and would involve the reconstruction of the entire production system and sales system, which involved a very wide range of issues, so the management was reluctant to make this decision.
Now, does Lin Zhenhua say this mean that his ideas have loosened and he plans to start the electronics industry button?
Lin Zhenhua smiled slightly and said, "The time is gradually ripe now. I think I will put forward this proposal at the next group board meeting. However, far-flung water cannot quench the near thirst. If we want to start the electronics industry, it will take at least six or seven years to achieve results. During this period, we still need to establish a good relationship with KHN."
"Six or seven years..." Liu Zhaohua muttered softly. He knew that this time was not long. I am afraid that only with Hanhua's speed could it be guaranteed to establish an electronics company with a scale of 100% in six or seven years. Six or seven years is a long time for individuals, and compared with the cultivation of an industry, it is just a short moment.
"Mr. Lin, according to your opinion, we can only accept the conditions for KHN first, right?" Liu Zhaohua asked. He didn't feel much wronged now. Anyway, it's only six or seven years. A gentleman takes revenge, and it's not too late for ten years. So what can I do if KHN is proud of for a few years?
Unexpectedly, Lin Zhenhua said: "No, we cannot accept the conditions of KHN and cannot be used to their problem. I have to let Yasuhiko Miyashi Nishino swallow what he said."
"But, we have no measures to counter them." Liu Zhaohua said.
Lin Zhenhua glared and said, "Who said there was no? I'm ready long ago. In this way, Xiao Zhen, you can hurry back to Xiangshan immediately and organize people to prepare a preparatory plan to ensure that in case of the situation, Spischer's chip can be used instead of KHN's chip, and you must not let KHN pinch our throat."
"No problem!" Donnie Yen agreed loudly.
"Old Liu, you can study it as soon as possible to see how much our company and the companies we guide rely on khn chips. If we really break up with khn and turn to other manufacturers' chips, how much loss will be."
"Okay, I'll complete this work as soon as possible." Liu Zhaohua agreed without hesitation.
"Then you go." Lin Zhenhua waved his hand, sent the two of them away, then took out his cell phone from his pocket and called An Yan's phone: "Yanzi, what I discussed with you last time has happened now. It seems that you need your home appliance industry to help us."
"Don't worry, Brother Lin." An Yan's voice came over by phone: "I'll contact Brother Xiong immediately, we will be able to arrive in Beijing tonight."
Haha, Myrishino Yasumi, since you want to show off with us, let’s compare the trump card to see who has a stronger trump card. Lin Zhenhua put down the phone and thought confidently.
Chapter completed!