Chapter 110 – 3 Parties Cooperation (Part 1)
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“Director Li, have you considered what I told you the last time?” Feng Yu sat on the sofa and crossed his legs. Beside him was a frowning Li Shiyou.
Feng Yu had mentioned to him about using the ultrasonic vibrations technology for the humidifier. It will be safer, and the effects will be better.
But the Motor Factory does not have this technology. The Motor Factory was a military factory in the past, but their primary focus was still electric motors and electrical related products like batteries, generators and electrical wirings. They had the best technologies for these products in China. This ultrasonic technology had nothing to do with electric motors.
But Li Shiyou knew which factory had this technology. He wanted to get this technology but to no avail. Now, Li Shiyou was also interested in branding. If the electric fans had used the Motor Factory’s brand, then they would have enjoyed higher profits.
He also did not expect this small humidifier could also bring in such big profits. This time, he had learned his lessons and proposed a joint corporation with Feng Yu. He does not want to be a contractor anymore. He wants a cut of the profits. Feng Yu also suggested that he wanted the factory to develop the ultrasonic humidifier. He will pay for the development costs and the share the results. The profits sharing can be discussed later.
Li Shiyou discussed with the other leaders of the factory, and everyone agrees to this proposal. Although the government was encouraging the development of electric generating facilities, the technology for hydropower was still weak. The primary source of electricity was still from thermal generators. The Motor Factory main strength was always in hydropower, Thermal power and wind power was still lacking. They also just started researching on solar energy. As for others, they were still in the theoretical stage.
Li Shiyou had thought about this carefully. If they depend on electric generators, the factory might not suffer any losses, but there were not many profits either. Look at Tai Hua Trading. Just an electric fan and they had made millions of profits. They were also working with the Machinery Factory, and the Machinery Factory was doing very well. Even Li Mingde, who used to be looked down by him, started to talk arrogantly to him!
Li Shiyou decided to gamble. Anyway, Feng Yu will be paying for the research and developmental costs. If it succeeds, the Motor Factory have another revenue stream. If it fails, then consider it as accumulating experience. But they had tried. They understand the theory behind the ultrasonic technology and how to turn water into mist, but they just can’t produce the humidifier. Based on his factory engineer’s estimation, the size of the humidifier would be about the size of a car. How to sell?
Li Shiyou wanted to trick the Aviation Factory into giving him the ultrasonic technology. After all, both factories were state-owned enterprises and had worked together on many military projects before. But the Aviation Factory just refuse to give them the technology.
What does the Motor Factory want? We, Bing City’s Aviation Factory, can just manufacture it and sell it to you!
Li Shiyou was now searching for a solution in the dark. He was afraid that if Feng Yu knew about this, he would ditch them and work with the Aviation Factory. Then, the Motor Factory will have nothing to do with this in future.
In the end, both parties were just business partners and do not have a close relationship. If the Motor Factory had helped Tai Hua Trading to warn Song Xiao in the past, Song Xiaofeng would have stopped threatening them. After all, the Motor Factory used to be a military factory and was more ferocious than the Police!
Because they had not helped Tai Hua Trading, both sides had some feelings of animosity. Li Shiyou felt that if Feng Yu had found a better partner, he would ditch the Motor Factory immediately.
Feng Yu waited for a while, and Li Shiyou just kept quiet and frowned. Feng Yu knew that something was wrong.
“Director Li, what happens? You don’t intend to work with me anymore? It’s fine. Actually, the Machinery Factory can also manufacture this humidifier.” Feng Yu stood up and wanted to leave.
The Machinery Company indeed can produce the humidifiers. But the Machinery Company will never produce it! Although all the critical decisions in Machinery Company, were not decided by Li Mingde alone, it was Li Mingde was controlling everything from behind.
Even if Feng Yu could persuade Li Mingde to produce the humidifiers, he still has to split the profits with them. Once the Machinery Company found that the earnings for the humidifiers were high, then they will want to get the more significant share, and Feng Yu will be getting the lesser share. It would not be like with the Motor Factory where they just accept the contractor fees.
Li Mingde was also more despicable than Li Shiyou. Before Feng Yu becomes the major shareholder of the Machinery Company, he would not put all his eggs in the Machinery Company basket, for them to reap the benefits.
Since the Motor Factory was not willing to corporate with him, Feng Yu had another option, which was the university. No matter if it was a technological university or a shipbuilding university, they were strong in research and development. This ultrasonic technology was not considered complicated, and the university lab should be able to complete it. The only problem for Feng Yu was the patent for the technology. The university will not hand over the patent to Feng Yu.
“Wait, Director Feng. It’s not that we do not want to work with you. But our ultrasonic vibrations technology was still in the theoretical stage, and it will take at least 1 year to put it into practical use.”
Feng Yu finally found out that Li Shiyou was bluffing when he said that they had the ultrasonic technology. The Motor Factory had only started researching on it after Feng Yu’s suggestions!
“Director Li, let’s be honest with each other. The Motor Factory does not have any engineers that know the ultrasonic technology? You all tried to research about it now and discover that it was impossible for you all to succeed? Since you all dare to agree to work with me last time, then you must know where to get this technology. Which factory is it? Or which university’s professors?”
Li Shiyou looked at Feng Yu in astonishment. He could guess so much with so little information? How can a teenager be so shrewd? He must be at least a few decades old.
“I know that the Bing City’s Aviation Factory have this technology and even have the experts in this. But they do not want to sell the technology to me. I had tried to meet Director Hou a few times but never got to see him.”
“Experts from Aviation Factory? Why not you try to ask Director Hou of the Aviation Factory out. We can discuss for a 3-way corporation. They can come out with the technologies, I can come out with the capital, and you can do the production. The profits will be split between the 3 of us.”
Another partner? Feng Yu was happy to have another partner. Furthermore, Feng Yu wanted to know Bing City’s Aviation Factory’s, Director Hou. His next business idea will need to partner with the Aviation Factory, and it will be even more profitable.
“3-way corporation? Okay. I will contact him.” Li Shiyou was glad the Feng Yu made this suggestion. He was afraid that Feng Yu will ditch them.
Hou Haitao received Li Shiyou’s call, and it was about the ultrasonic technology again. Hou Haitao just gave the same reply, which was the Aviation Factory would manufacture whatever he wanted and sell it to him. Hou Haitao was more senior than Li Shiyou. When he was the Director of Aviation Factory, Li Shiyou was still a junior deputy director. Even when Li Shiyou was the director now, Hou Haitao always treats him as his junior.
This time Li Shiyou did not hang up the phone. Instead, he said that he will be bringing a friend to meet him at the Aviation Factory to talk about a joint project and guaranteed that the Aviation Factory has nothing to lose.
After hanging up the phone, Hou Haitao was wondering. How could he not know any of Li Shiyou’s friend?
Feng Yu had already decided that no matter how they cooperated, and how much money he had to fork out, the patented technology and brand must be under his control. These were the most important things!
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