Compared with Lu Yongjun's cautiousness towards Lu Weimin's suggestions, Radar's trust level was much higher. When Lu Weimin brought up the matter, Radar just asked if he had done anything. When Lu Weimin said that he would do something about it later, it would depend on the situation.

It seems that after the small leader must have taken the initiative, Radar made a very direct statement, and then Tuoda Group was ready to follow up.

In addition to Huada Steel, Tuoda Group has also established a new steel structure company in Songzhou. Judging from the current situation, the situation is relatively good. The pull of several trillion yuan has caused the entire building materials industry, which was already in decline, to be pulled back again.

However, the radar that has been immersed in the shopping mall for decades is still keenly aware of the market crisis.

"Has Da Ge also noticed that the market is unsustainable?" On the evening flight, Lu Weimin had half a day's leisure. He asked comrades from the Provincial Government Office to accompany Dou Qingwen and the others to see the scenery of Changzhou, and he took time to chat with Radar.

, Yuan Lianmei and Lei Zhilong came to visit him respectively last night. The conversation lasted for more than an hour. Everyone was very friendly, which made Lu Weimin full of emotions. Today, Radar also made a special appointment with Lu Weimin and asked Lu Weimin to make room for him.

Time to have a good chat.

"Having been together for so many years, you are somewhat sensitive, right?" Lida loosened his belt. He has grown in stature in recent years, and his weight has jumped to more than 90 kilograms, which makes him feel out of breath even with the slightest movement.

Feeling angry, I started to exercise and control my diet now.

"The financial crisis is not terrible. We are engaged in industry. As long as there is a market, it is not a problem. The problem is that the market is out of order. It seems that it is still early to talk about China's urbanization process. The problem is what farmers can live on when they move to the city. Everyone

We are calling for more urbanization, but you can't force farmers to move into cities, right? I think the next step of slowing down urbanization is inevitable, and infrastructure construction is in full swing. Those are all state investments, but you have to think about them.

With such a huge investment, what is the return ratio? Everyone is bragging about building roads, but the problem is that some roads are obviously political roads and do not count as economic benefits. In the end, the government pays the bill, and it cannot even pay the interest. I think this is unsustainable.

.”

"So you think a crisis is coming?" Lu Weimin asked.

"Well, I guess it's almost the same. The year before last, Tuoda Cement was planning to expand production, but I vetoed it. I said you should stabilize the current production capacity. Focus on refined management, reduce costs, and improve efficiency. This is more important than anything else.

Strong, it is much more important for a company to be strong than to be big. The scale of Tuoda Cement is sufficient and not inferior to other companies, but in terms of cost savings, fine management, and product innovation, it is still far behind. I think

If the market is really oversupplied, then if Tuoda Cement wants to survive, it can only make a fuss about cost management, and price wars are inevitable. Then it is more important than cost control. Tuoda has no loans, which is better than other companies.

It's much better, but it's not enough. Saving costs while maintaining stable quality is the magic weapon to win." Radar seemed very calm, but his tone was still a little anxious: "I'm not very worried about Tuoda Cement, after all, we have market share.

In terms of scale and cost control, I think it is already very competitive. Whether it is Lafarge or Conch, I am confident in competing with them, but I am not confident in Huada Steel."

Lu Weimin rubbed his chin, his radar sense of smell was sharp enough, and he was not dazzled by the short-term glory brought by trillions of dollars. This method of relying on financial investment is not smart. It treats the symptoms but not the root cause.

It can even be said that drinking poison to quench thirst.

"Then what are you going to do now?"

Lu Weimin's question surprised Radar, which meant that the situation might be worse than he expected, otherwise Lu Weimin would not have used this method of questioning. Over the years, Radar has become almost blind to Lu Weimin.

Trust, he quickly asked: "For the people, the situation will be really bad? I am just guessing, are you so sure?"

"Bad premonitions often become reality. This is a common practice." Lu Weimin shrugged, "It won't happen just because you don't want it to happen. On the contrary, the probability of it happening will be greater. So, we need to respond early."

"Then what do you think I should do?" Radar has maintained a very secretive but low-key but close relationship with Lu Weimin over the years. He trusts Lu Weimin more than anyone else because Lu Weimin has never let him down over the years.

"It depends on what you plan to do." Lu Weimin also knew that Radar was hesitant, "If you want to continue in the steel industry, then you can only seize the opportunity now and further expand and upgrade production. Expansion and upgrade refers to improving the product structure.

Throw away primary products, develop high-quality and high-end products, like Tuoda Cement you mentioned, manage carefully, reduce costs, and prepare for the winter."

"What else? Is there another way?" Radar then asked.

"Survive with a broken arm, direct and complete transfer. I believe that with the current market situation, many people are still optimistic about the steel industry, and your Huada Steel is second only to Shagang among private steel companies. I believe many people are still interested and have their own

The terminal has also invested in a mine in Australia, which reduces risks and has certain advantages in terms of cost control. If the news is released now, I believe someone will definitely come to negotiate for the purchase." Lu Weimin said calmly.

From the bottom of his heart, Lu Weimin didn't think it was a good idea for Radar to stick with Huada Steel. Although Huada Steel did well in terms of scale and cost control, it never made a big breakthrough in product structure, and Baosteel

/ Compared with Shagang, the product structure is not reasonable, there are insufficient high-end high value-added products, and the profit margin is obviously inferior to other top-ranked steel companies. Of course, from a local perspective in Songzhou, Huada Steel can be considered a supporter.

For half of the country, especially in those years when Songzhou's renaissance was just beginning, the completion and commissioning of Huada Steel was a heavy blow for Songzhou and also gained face for Lu Weimin.

Another major disadvantage of Huada Steel is that Huada Steel is only a purely private steel company. Compared with Shagang, it is not large enough. Compared with state-owned steel companies, it cannot compete with state-owned steel companies in obtaining support from financial institutions.

In comparison, of course there is no problem when the market is good, but once the market turns cold, especially when it is extremely cold, I am afraid that all problems will be magnified, and banks have always only added icing on the cake and are not willing to provide help in times of need.

The matter of bridge withdrawal is a normal thing. Even with the support of Huamin Bank and Minsheng Bank, when the market enters the cold winter, the bank must also consider its own interests and cannot provide unlimited support. After all, the interests belong to

, no one can let their own interests suffer in vain.

If Huada Steel merges into Huamin Group, of course it will not be a problem, but Huamin Group has no intention to enter the steel field. Lu Weimin has already verified this with Lu Zhihua. Lu Zhihua made it clear that Huamin Group will not enter the steel industry, especially now

It's even more impossible in this environment.

In this case, if Huada Steel wants to be transferred, it must find a successor with sufficient weight.

Regarding Lu Weimin's suggestion, Radar fell into deep thought. He was not a stubborn person, and he would not think that Huada Steel should be regarded as a career that he could not abandon because he had made it big in his own hands. He also knew that Huada Steel was a career that he could not abandon.

The shortcomings of Huada Steel are of course no problem under the current circumstances, but when the cold winter really enters, these shortcomings will become fatal injuries. If Huada Steel truly collapses by then, it will be the greatest pain.

"For the people, which one do you think I should choose?" Radar thought for a long time before slowly saying.

"I still say that, it depends on you." Lu Weimin was unmoved, "If you want to persevere, I think it may be difficult in the future, but I believe you can get through it, but it will be more difficult during this period.

In my judgment, for a long period of time in the future, the steel industry will enter a stage of low profit or even no profit due to the downturn of the overall domestic economic situation. Large-scale mergers and acquisitions are inevitable. If Huada Steel does not merge with others,

I’m afraid that eventually the situation will force it to be merged by others, because sticking together for warmth is the best strategy in that situation.”

"So it seems I only have a broken arm?" Radar seemed to have figured out some problems.

"Dago, a broken arm is not necessarily a bad thing. This arm may be bought at a good price now, and after it is sold, it can be reborn in other industries, and maybe a healthier and stronger golden arm can be grown.

Not necessarily." Lu Weimin smiled: "Actually, Brother Da, you already have an idea in mind, right?"

"Well, to tell you the truth, I have this intention. You must know the Fuxing Group, the Fuxing Department. They control Nangang and Jianlong Steel and hope to integrate their own steel industries. I revealed a little bit at the time,

They were very interested, so they made a special trip to find me. They have already called me twice, but I have not responded." Radar nodded.

Fuxing Department? Of course Lu Weimin knows it. This is one of the best enterprise groups in China that was built from scratch. It involves many fields, and steel is just one of them. Unexpectedly, they now intend to expand the steel industry. As far as Lu Weimin knows, the industrial structure of Fuxing Department is very complex.

Large, somewhat similar to the Hua Min Department, but the Hua Min Department is not involved in traditional manufacturing. Except for Jianlibao and Fengyun Communications, the others are mainly in the tertiary industry, while the Fuxing Department is in the bio-industry/steel/mining

/Real Estate/Finance/Commerce is the main industry, and steel is also its main business. Its acquisition of Huada Steel is probably intended to further expand and strengthen the steel industry. In this regard, Lu Weimin thinks it is a suitable transaction partner.
Chapter completed!