The high profits of petroleum refining are well known. In recent years, domestic refined oil consumption has continued to rise, while domestic refined oil supply is limited, resulting in the continuous rise in oil prices. The savvy entrepreneurs in Haidong all see it and are also salivating about the refining industry, hoping to have the opportunity to get a share of it.

Feng Xiaochen knew the entrepreneurs’ ideas, so he heard Xue Mucang talk about it. Xue Mucang has served as the head of the base since its establishment. Now, because he is old, he has retreated to the second line, but he still often participates in the base work and has a close relationship with private entrepreneurs such as Ruan Phucang.

Two years ago, large petrochemical companies such as Beihua Machinery and Xinyang Secondary Machinery were vigorously promoting large-scale refining equipment with an annual output of more than 10 million tons. Feng Xiaochen also communicated with the State Planning Commission and other departments for this, hoping that the country can invest in the construction of large-scale refineries of this level and provide equipment manufacturing companies with an opportunity to verify their technical level. However, as Wang Zhenbin said earlier, the country cannot provide so much funds at one time, and local governments can only raise funds to build small refineries themselves, and large-scale equipment has no place to be used.

After learning about this situation, Ruan Phucang and others proposed that private funds could be raised to build a large oil refinery. Their calculations were very smart. Large oil refineries had higher production efficiency and the refined oil produced was competitive in price. In addition, the domestic finished product market was in short supply, so building a refinery was definitely a business that would be profitable and not lose money.

However, an oil refinery involves an investment of over 10 billion yuan, which cannot be built by private enterprises if they want to build. Investment projects of this level must be approved by the State Planning Commission before they can be started. In addition, unlike ordinary light industrial enterprises, the crude oil used by the refinery is a national strategic material and needs to be distributed uniformly by the state. If the refined oil produced is to enter the national sales system, the state also needs to issue a "pass". The state's supervision in the refining market is very strict. Local governments in some provinces and cities have to go through cumbersome procedures to build a refinery, and sometimes it may not be approved by the Planning Commission. What can Ruan Phuchen and his group of township entrepreneurs do? How can they get such a license?

Feng Xiaochen heard about this, but he did not get involved. His identity is now quite sensitive and should not be involved in any areas that have nothing to do with him. Ruan Phuket and others also came on a whim and saw that things were difficult to do, so there was no trouble in the end.

Just now, Wang Zhenbin was run over by Feng Xiaochen and had nothing to say. He blurted out that Feng Xiaochen would raise funds to build a refinery with an annual output of 20 million tons. Feng Xiaochen seized the head of his words. Feng Xiaochen felt that perhaps it was the time to open the oil refining market to private capital. After all, joining the WTO is imminent. Instead of giving up this market to foreigners, it would be better to let private capital come in and disturb the situation. Relying on state-owned enterprises alone to fight against foreign competitors is a bit weak. Private capital is also China's capital. In this kind of competition, it can be an allies of state-owned enterprises.

After all, Wang Zhenbin has been working for many years in economic work. How could Feng Xiaochen have thought of something that he could not have thought of? He heard Feng Xiaochen speak so seriously, he pondered for a while and said, "This is a way. Anyway, we also want to open the market. Foreigners can come. Why can't private capital come?"

"That's true." Feng Xiaochen said, "According to the current economic development momentum, China's demand for refined oil will definitely double in the next 20 years. By 2020, China's oil refining scale will be no less than 800 million tons, and our current production capacity is only a fraction. With so many new production capacity, it is far from enough to rely on state investment. Attracting private capital investment can make up for the shortcomings of insufficient state funds."

"But, what does this matter have to do with you?" Wang Zhenbin asked.

Feng Xiaochen said: "Of course it's related. The cost of building a set of equipment and building three sets of equipment is different. If the whole country can start construction of three sets of 20 million tons of equipment at the same time, I can reduce the cost of a single set by more than 10%. Do you think it's meaningless?"

Feng Xiaochen's words are not false. Many of the cost of complete sets of equipment can be shared. For example, there is no big difference between designing one set and designing three sets. At best, it is slightly modified based on the differences in oil products used by different refineries. The main design is universal. The design cost of complete sets of equipment must account for about 5% of the equipment quotation. If three sets of equipment are designed at the same time, the cost can be divided equally by three companies, and each company can save at least 3%, which is not a small amount. In addition, some process equipment must be involved in equipment manufacturing and installation, and the sharing of batch production and single-piece production is also different.

Feng Xiaochen does not need to explain the calculations to Wang Zhenbin and the others. Even if it is explained, the other party may not be able to understand. For Wang Zhenbin, the number reported by Feng Xiaochen is enough. A set of equipment is more than 20 billion yuan, and saving 10% is more than 2 billion yuan. Isn’t this enough?

"Can your equipment company submit a complete report on this matter so that I can report to the leader?" Wang Zhenbin said.

"No problem at all!" Feng Xiaochen agreed readily. If this matter can be achieved, the three sets of equipment have a contract amount of more than 70 billion yuan, and a number of petrochemical companies such as Beihua Machinery and Xinyang Secondary Machinery will not be crazy about it? Not to mention asking them to submit a report, even if they are asked to send a truck of reports, they will do it as they will.

When Xu Zhenbo saw Feng Xiaochen and Wang Zhenbin reached a consensus, he asked: "So, do you all think we have the ability to deal with foreign competition for refined oil? If so, it would be great. We can agree to foreign conditions and exchange many conditions that are beneficial to us."

Wang Zhenbin smiled and pointed at Feng Xiaochen, saying, "It's useless to ask me this question, it depends on Mr. Feng and the others' abilities."

Feng Xiaochen responded with a smile: "I can guarantee that if Director Xu needs a military order, I can also ask the Petrochemical Design Institute and Beihua Machinery to open it for you. We introduced equipment manufacturing technology from abroad in a bitter way to deal with today's situation. Given five years, we will definitely be able to defeat the refined oil from abroad. At that time, we will be afraid that they will cry and complain about us to dump it."

"There is really a day when I will help you respond." Xu Zhenbo's emotions were also mobilized by Feng Xiaochen, and he volunteered.

The talks ended in a friendly and friendly atmosphere. Feng Xiaochen warmly invited Wang Zhenbin, Xu Zhenbo and his party to have a dinner at the sauerkraut restaurant he mentioned, but were politely declined by the two directors. There were many results today, and both of them had to write a report to their respective leaders.

Feng Xiaochen returned to the equipment company and summoned everyone to talk about what he had discussed with Wang Zhenbin. Everyone was also excited. Leng Feiyun tsk in a word and said, "Equipment alone is more than 70 billion, which is called large industry. We can be considered a success."

Wang Genji pretended to be disdainful and said, "Lao Leng, your eye sockets are too shallow. You have only been happy like this for more than 70 billion yuan. In recent years, steel and electricity departments have been large projects worth tens of billions of yuan, and I have become numb to hear it."

Leng Feiyun retorted: "Old Wang, haven't you seen Xiaochen say that these three large devices are just the beginning. There are more devices in the next step. By then, it will be more than 70 billion, and 700 billion is possible. Think about it, what impact will such a large business have on our system. When I first entered the reinstallation process, I couldn't believe that one day we can organize such a large production scale."

"Xiaochen has said this a long time ago, but you just don't believe it." Wang Genjiniu commented. In the past meetings, Feng Xiaochen had indeed predicted the prospects of the equipment manufacturing industry more than once, saying that a scale of hundreds of billions a year was not a problem at all. When he said this, everyone felt that he was a little silly, but in recent years, the scale of basic construction in the country has become increasingly larger and large-scale projects have emerged one after another, so everyone began to believe this prophecy.

Leng Feiyun blushed and argued: "When did I not believe what Xiaochen said? I just didn't expect things to come so quickly. It was quite difficult in our system a few years ago, but in the past two years, the market suddenly became active."

Wang Genji wanted to say something, but Wu Shican interrupted him and said, "I also felt what Xiao Leng said. There have been obvious signs of acceleration in national construction in the past two years. We have been preparing for the 20 million tons of oil refining equipment in the past, so that all enterprises and design institutes will do pre-research. Now it is not difficult to start it officially. What I think is that the other pre-research projects that Xiao Chen mentioned in the past, such as offshore wind power, offshore oil, high-speed railways, industrial robots, etc., are probably going to speed up the progress. According to the current trend, I estimate that these projects will be put on the agenda in less than 10 years. If we cannot produce excellent technology, it will delay things."

"That's right, Lao Wu is right." Wang Genji quickly agreed, "After Xiaochen took office, he has been talking about equipment pre-research, and I still don't take it seriously. Now it seems that Xiaochen is indeed too foresight. Take this 20 million tons refining device as an example. At the beginning, we asked Beihua Machinery and others to make technical reserves, and those grandsons bargained. Now, if they can't come up with technology, this project will not have their share, and they can't even touch the grave even if they cry."

"Now is not the time to make them cry. If you want to cry, you have to wait until the equipment is built before crying." Feng Xiaochen continued Wang Genji's words, "The plan committee will have to discuss some discussions on this matter, but I think it's already an arrow, so I have to send it. Lao Leng, you immediately contact a few petrochemical equipment companies and ask them to send people to the capital to discuss cooperation and research issues. Lao Wu, the Petrochemical Design Institute and the Chemical Design Institute, you are responsible for contacting. As for Lao Wang, please help contact the representatives of several oil tyrants in the capital of the Middle East. I want to talk to them."
Chapter completed!