Chapter 228 Buying Equipment and Building Equipment
Tokyo, New International Airport.
A group of Chinese people came out from the arrival entrance and stood outside reluctantly saying goodbye:
"Director Xiao Feng, goodbye, let's go back to China to see you!"
"Mr. Xu, goodbye, take care of your health!"
Xu Wenliang and Feng Xiaochen shook hands, exchanged smiles with each other, and then left with their own team.
According to the agreement signed with Sanli Steel Manufacturing Institute, Qinzhou Heavy Machinery Factory sent a technical team led by Xu Wenliang to Sanli Steel Manufacturing Institute to participate in the rolling mill design work, and personally experienced the rolling mill design process of Sanli Steel Manufacturing Institute from scratch and learned their design experience.
Feng Xiaochen followed another team, which was a large fertilizer equipment inspection team, with very complex members. The ministries and commissions included the State Planning Commission, Economic Commission, Agriculture, Machinery, Chemical Industry, etc. There were government officials from several provinces in the local area, and the enterprises included cadres and technical personnel from five or six large fertilizer plants and four or five chemical equipment manufacturing plants. If we want to divide them from a professional perspective, there are roughly two camps, one is to use fertilizers and fertilizers, and the other is to make fertilizers.
The mission of this inspection team was full of contradictions from the beginning. Local officials and fertilizer plants proposed to investigate the manufacturing of fertilizer equipment in Japan, and then directly introduce large fertilizer equipment to form fertilizer production capacity as soon as possible. The Ministry of Machinery and several chemical machinery factories believed that the manufacturing capacity of fertilizer equipment should be introduced to achieve the localization of large fertilizer equipment. In the future, the number of fertilizer plants you want to build will be as many as you want.
The Planning Commission, Economic Commission, Ministry of Agriculture, Ministry of Chemical Industry, etc. have ambiguous attitudes. Some support buying equipment, some support introducing equipment manufacturing capabilities, and some are smart in the middle, saying that you can buy a few sets and then make a few sets by yourself, so that both sides can take into account the ideas.
China is a major agricultural country, and the demand for fertilizers has always been very high. Since the 1950s, my country has introduced Soviet technology and gradually formed a small and medium-sized nitrogen fertilizer equipment production capacity with an annual output of 10,000 to 50,000 tons. Based on this, a small fertilizer system in the "five small industries" has been established.
At this time, foreign fertilizer production technology has already gone large-scale, and the annual output of 300,000 tons of synthetic ammonia devices has become a popular trend. There is a huge gap in energy consumption between large fertilizers and small fertilizers. It is estimated that the power consumption per ton of ammonia for large devices with an annual output of 300,000 tons of synthetic ammonia is 38 degrees Celsius, while the power consumption per ton of ammonia for small devices with an annual output of 5,000 tons is 1,363 degrees Celsius. Different consumption levels have brought huge differences in costs and profits. In the early 1980s, the profit per ton of synthetic ammonia produced by large factories was 130 yuan, while the profit per ton of small factories was only 27 yuan.
In addition, domestic nitrogen fertilizers are mainly ammonium bicarbonate with a lower nitrogen content, which is commonly known as ammonium carbonate by farmers. The nitrogen content is only 17%. Urea is commonly used abroad, with a nitrogen content of 48%, and the difference in fertilizer efficiency is also extremely obvious.
In the early 1970s, in order to increase grain production, China began to import urea from abroad in large quantities and spent a lot of foreign exchange. In order to get rid of this dilemma, in the mid-1970s, the country introduced 13 large fertilizer equipment with an annual output of 300,000 tons of synthetic ammonia and 520,000 tons of urea from the United States, the Netherlands, France, Japan and other countries; in the late 1970s, four sets of equipment of the same specification were added.
However, relying solely on these 17 sets of imported equipment cannot fully meet the demand for chemical fertilizers in domestic agricultural production. The Ministry of Agriculture and the Ministry of Chemical Industry estimate that by the end of this century, the fertilizers required for domestic agricultural production will reach more than 40 million tons based on the pure amount. Taking into account the structure of large, medium and small nitrogen fertilizers and phosphorus fertilizers, at least 30 new 300,000 tons of synthetic ammonia devices are needed in China.
In this way, two factions are formed, including buying equipment and building equipment, and they are evenly matched and stalemate.
Making equipment is the general direction set by the state, and Feng Xiaochen's Renovation Office, where Feng Xiaochen is located, assumes such a mission. Among the 11 major technical equipment responsible for the Renovation Office, it includes the large fertilizer. The state clearly stated that large fertilizer equipment is a key equipment to ensure national agricultural security and must master this technology by itself. In this sense, the party who advocates the construction of the equipment itself has the "political correctness" sword of Shangfang and has the confidence to speak.
However, there is a good reason for the party who advocates buying equipment. If you buy a set of equipment, you can start production in three years, providing urgently needed urea for agricultural production. If you choose to build your own equipment, from digestion and absorption to the mature technology, it will not be possible in less than ten or eight years. During this period, farmers need fertilizers. If the country cannot provide it, it means that the grain cannot increase production, and 1 billion people are hungry. Who is responsible? If it is provided by the country, it can only rely on imports, which also costs precious foreign exchange.
The import price of a ton of urea is calculated at US$100. If the device with an annual output of 520,000 tons of urea is put into production one year earlier, it will save US$50 million in foreign exchange expenditure. If you wait for domestic equipment, even if it only takes five years, the loss of foreign exchange will be as high as US$200 million to US$300 million, and this money is enough to introduce five sets of equipment.
There is a historical data. From 1971 to 1985, the country introduced 17 sets of large fertilizer equipment and other related equipment, spending 1.06 billion US dollars in foreign exchange; while in 1988, the import of fertilizers had reached 2 billion US dollars in foreign exchange. Should I seize the time to introduce equipment instead of importing fertilizers, or would rather import fertilizers than import equipment to make way for domestic equipment? This multiple-choice question is probably not difficult to do?
If the saying "It is better to buy than to make it" is not mixed with ideological labels, it does make sense sometimes.
In addition to these big principles that can be used on the desktop, there are some small principles that cannot be said but everyone knows. They are also very important, and they can even be said to be even more critical than the previous big principles.
Unlike rolling mills, the price of introducing large fertilizer equipment is not particularly high. In the mid-1970s, the total investment of 1,700 mm hot-rolled and cold-rolled production lines introduced by China was 3.89 billion yuan, while the investment was only 300,000 tons of synthetic ammonia and 520,000 tons of urea was introduced during the same period. The investment was only 300,000 yuan. The former was huge and local governments were unable to bear it, and the state had to pay the money. Therefore, the Economic Commission could mandate the "joint manufacturing" and gradually improve the level of localization. The investment required by the latter was able to raise by the provincial government. People paid for the money to buy equipment themselves. What reason does the country have to say?
Large chemical equipment enterprises are all directly under the state, and the province cannot afford such large enterprises. However, fertilizer plants belong to the province. The fertilizers produced and the profits obtained are all the benefits of the province. Which province is willing to give up the fat meat at its mouth and use them to practice technology for chemical equipment factories directly under the state?
As for the benefits that the introduction of equipment can bring to the parties involved, it is even more unpretentious, but who can say that this factor is not important?
Feng Xiaochen jumped in now, such a vortex. This inspection team was led by the Economic Commission. From the beginning, when the participants were agreed, there were already many conflicts and tensions, which made the leaders of the Economic Commission very troubled. Because it involved the introduction of large-scale equipment, the Economic Commission asked the Reinstallation Office to send people to participate and coordinate the camera. Luo Xiangfei also knew the troubles of this matter. With the mentality of being a dead horse as a living horse, he sent his own magic weapon Feng Xiaochen, hoping that with Feng Xiaochen's wit, he could sort out a clue in the middle of this mess.
The Large Fertilizer Equipment Inspection Team and Qin Chong's mill design delegation were heading to Japan on the same plane. Feng Xiaochen originally planned to talk to the staff of the inspection team on the plane. Unexpectedly, Xu Wenliang and Cui Yongfeng were pulled over as soon as they got on the plane and talked about the mill issues along the way. This made Xu Wenliang and the others finally send away, and Feng Xiaochen returned to his team.
"Xiao Feng, let me introduce you to you. This is Mr. Qian Guiwuzhi, Vice Chairman of the Japan Chemical Equipment Association."
When the head of the inspection team saw Feng Xiaochen coming, Wang Shicheng smiled and introduced him to the people who came to greet him. Wang Shicheng is a deputy director of the Economic Commission, and the Reinstallation Office is an institution under the Economic Commission, so Wang Shicheng is Feng Xiaochen's indirect superior. However, Wang Shicheng is a very smart person. He had long heard that the chief director Zhang Keqiang admired Feng Xiaochen quite well. Moreover, because Feng Xiaochen had the idea of establishing a Jingwei Consulting Company, which solved the employment problems of many unemployed children of the Economic Commission. Many cadres of the Economic Commission were grateful to him, so Wang Shicheng was not convenient to put on the airs of Feng Xiaochen in front of Feng Xiaochen, and was very polite to him in his words.
"Mr. Qiangui, I'm glad to meet you."
Feng Xiaochen walked forward, bowed to Qian Guiwuzhi, and greeted the other party in Japanese.
"I didn't expect that Xiao Feng, your Japanese is so good!" Wang Shicheng exclaimed half-truely, "No wonder Director Luo respects you so much. By the way, Mr. Qiangui, I forgot to introduce you to you. This is Mr. Feng Xiaochen, the deputy director of the Major Equipment Office of our Economic Commission. The issue of the introduction of major equipment is directly responsible for the department where Director Feng is located."
The following sentence was said to Qian Guiwuzhi. The translator translated his words to Qian Guiwuzhi. Qian Guiwuzhi looked a little surprised on his face, and then bowed to Feng Xiaochen again and said, "In this way, this time, the cooperation between us and us will rely more on Director Feng."
Feng Xiaochen smiled and said, "Haha, Mr. Qiangui made a mistake. Director Wang was joking with you just now. Director Wang is my leader. Everyone in our delegation is my leader. I just act as a translator for them and a handyman who runs errands. However, I still hope that we can cooperate happily."
Chapter completed!