Chapter 418 – Stock up
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Feng Yu had agreed to give these people a chance. He will let these people in charge of selling health supplements. Not willing to do sales? You want to sit around and do nothing? Then don’t come to Bing City Pharmaceutical Corporation!
The City also agreed. They were thinking, at least this would solve the employment issue of these people. If these people were not suitable to do sales, then the city would also have an excuse. Look, I had arranged a job for you. You are the one that was not up to the task.
The city knew that there were too many people in the enterprises and they need to learn from the enterprises overseas. Retrenchment! But they were the government, and they need to take care of their people. This was the reason why they could not act like those private companies.
Now, it was the same throughout China. This would last until the iron fist president comes into power. He would force those enterprises to change. Those enterprises that were supposed to be bankrupt were shut down. He would stop these enterprises from sucking the City dry. He would give those retrenched workers a sum of money and let them look for jobs themselves or reassign them. This was better than letting them sit at home without any salaries.
The conditions were all finalized. Feng Yu does not have any problems with most of the conditions. He only wanted the position of vice chairman for himself. Of course, he also wanted a veto vote. Also, he also assigned his man to be the factory director of Sixth Pharmaceutical Factory. This factory would be in-charge of producing his health products. Wu Zhigang has a new title now. He was not also the factory director of this factory.
Feng Yu also transferred a few financial staffs from the Machinery Company to this corporation and reassigned the financial staffs from the Pharmaceutical to the Machinery Company. This was because the staffs were not familiar with the leaders and would prevent them from being in cahoots with each other.
Now, most of Tai Hua Trading’s recruitment was for financial staffs. Those new recruits will be getting high salaries after their 3 months probations. There were very few openings for other positions. Even the positions for translators were few. This was because Translator Xue had entered Tai Hua Trading and his salaries were higher than before. A few of his former colleagues in the Foreign Affairs department started to moonlight at Tai Hua Trading.
This was advantageous for Tai Hua Trading. These translators were much cheaper than those University’s professors, and they specialized in translating business documents.
After the conditions were finalized, it comes down to the last part. This was the hardest part of the negotiation. Feng Yu wants this company to be registered with a capital of 400 million RMB. This way, they would have enough funds to purchase some equipment. They could also buy some medical formulas from overseas.
But the City does not agree. They felt that 300 million would be sufficient. This way, the city could take away 100 million RMB after Feng Yu invested his money into the company.
If this corporation were registered with the start-up capital of 400 million, the City would not be able to profit so much from this deal. They could only get 60 million. This was not in-line with what they had planned. Although this was still in negotiations, the City had already planned what they were going to do with the money!
When Feng Yu learned how the city was going to spend the money, he was shocked! He had finally seen how the government spent money.
Damn, we had not even finalized all the conditions, you had already finish spending the money?
But even if they were not going to buy medicine formulas from overseas, they should at least get the equipment for R&D. Although these factories do have research facilities, they were using the inefficient and old equipment. These should all be replaced!
But the City had already planned how to spend the money, and this let Feng Yu have more rooms to negotiate.
“The registered capital should be at least 360 million. The City can still take out 100 million from the funds. Other than the money used to reassigned those retrenched workers, the city still has a lot of money left. This sum of money can be used for another purpose. If the City does not agree, then forget it. I will cooperate with smaller pharmaceutical factories in other cities. I can even be the major shareholder there!”
Feng Yu leaned back on the sofa and crossed his legs. He was shaking his legs with an irritating expression!
Deputy Mayor Li became nervous. We had finalized almost all the details, and we had given in to your requests on the merger. Now you are telling me that you want to stop this cooperation?
“Feng Yu, what is the meaning of this?! You think this is a joke? You think you can stop this cooperation as and when you like?” Deputy Mayor Li shouted.
“What’s wrong? You are Bing City’s, Deputy Mayor. Don’t tell me that you are going to beat me up? If we are about to see eye to eye on the conditions, then we will cooperate. If not, this deal is off. Don’t you understand such simple things?”
Feng Yu’s attitude was very arrogant. Who does this Deputy Mayor Li think he was? It’s okay if he thinks highly of himself and talks down on others. But he does not even know how to speak nicely to others and keeps shouting.
You think I am your subordinate? You think you can bang tables and stare at me? Even Old Zhang must speak nicely to me. Last year, when the Deputy Provincial Mayor wanted to meet me, I also dare to reject him. Who do you think you are?
If this were a few years earlier, maybe I would still give in. After all, I do not have so much money at that time. I was also afraid of you using some political means to deal with me. But now, you can try. We shall see who would go down first!
Zhang Ruiqiang signaled to Deputy Mayor Li and turned to Feng Yu: “Feng Yu, the City has important uses for this sum of money. We need to repair the roads and improve the City’s traffic conditions. This would involve relocations of the affected residents. This is not a small amount.”
“Mayor Zhang, you want me to create China’s top pharmaceutical corporation within a year, with only a factory and old equipment? You think I am a god? The production and research facilities must be replaced. How much can those old production lines produce in a month? The capacity is not enough!”
“Not enough? This is not possible. The whole Sixth Pharmaceutical Factory will be manufacturing those 5 types of health supplements. The factory’s production now is doubled compared to before the merger. This is still not enough?” Zhang Ruiqiang was very curious. Those 5 products were medicines, and the permits they applied were also medical products permits.
“It is not enough. Just the current production lines for oral solution are only sufficient for Zinc gluconate oral solution. I am still thinking of a manufacturing Calcium gluconate oral solution and Oral solution for red blood cells. As for the tablets, other than Calcium tablets and multivitamins, I will still be producing Zinc gluconate and Calcium gluconate tablets in the future. The current production will not be able to keep up.”
“What if all these products are not sold?” Deputy Mayor Li interrupted.
“Even if that really happens, I, Tai Hua Trading will buy all those unsold products!” Feng Yu looked at Deputy Mayor Li. What else do you have to say?
Once again, Deputy Mayor Li was speechless. He was really pissed off! This Feng Yu was too arrogant!
In the end, the City accepted Feng Yu’s proposal. The registered capital was 360 million RMB, and the City will own 51% of the shares. Feng Yu would own 49% of the shares. The Sixth Pharmaceutical Factory would be entirely under Feng Yu’s control. The City will not interfere. Also, the Sixth Pharmaceutical Factory will be using the most advanced equipment.
Feng Yu was the second largest shareholder of this Pharmaceutical Corporation. However, not a lot of people knows about this. The Government will not announce such news to the public. Even those factories’ workers do not know about this. They only know that there was a change in their leaders. Most of them do not even know who Feng Yu was.
Everything was finalized, and Feng Yu asked Wu Zhigang to inform the Sixth Pharmaceutical Factory to start producing Zinc gluconate, Calcium gluconate and Blood enrichment oral solution with the existing equipment. He also ordered the production of the calcium and multivitamin tablets.
Feng Yu does not care whether there were permits. Anyway, he was not selling these products now. When the approval was granted, then he would print it on the packaging. His goal now was to stock up his products!
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