Rebirth 76: Industrial Internet Empire

"I can guarantee that Mr. Zhao can be trusted regardless of his ability or character! Aren't we also looking for strategic partners!" Chang Yonggui assured.

Yang Mo shook his head and smiled bitterly: "Mr. Chang, it's not that I can't trust Mr. Zhao. Mr. Zhao is your old friend and a senior in the rare earth industry. Lucheng Rare Earth Company is also a well-known listed company in China. It is indeed a good partner, but..."

"Mr. Yang, I can guarantee this! Regardless of whether we can ultimately reach strategic cooperation or not, I will not reveal a word of what I said here today! We guys from the northwest will spit and nail!" Zhao Hengbo said in a deep voice. .

Yang Mo pondered for a long time and then said: "Okay! In this case, if I keep hiding it, it will show that I don't trust my friends! The entire rare earth industry rectification plan is divided into three stages. This first stage is particularly important, which is to turn the Western Rare earth smelting companies are kicked out of the industry chain!"

"Ah? Kicked out of the industry chain?" Zhao Hengbo didn't believe his ears...

"I don’t need to say more about the strategic significance of firmly controlling the entire rare earth industry chain in the hands of domestic companies. However, it coincides with the critical moment of WTO accession negotiations. It is inconvenient for the state to use administrative means to intervene and can only rely on commercial competition. This means that Western rare earth smelting companies will automatically exit due to large losses!" Yang Mo said in a deep voice.

"Isn't this impossible? France's Rhodia and Canada's AMR are giants in the rare earth industry. They are ahead of domestic companies in terms of capital and technology. It will be difficult for us to defeat them in a price war!" Zhao Hengbo looked suspicious. said.

Yang Mo nodded: "It is indeed difficult to defeat them with ordinary business competition methods. We need to change our thinking and use some unconventional methods!"

"Unconventional means?" Zhao Hengbo asked puzzledly.

"According to convention, foreign-funded enterprises such as Rhodia and AMR will sign contracts for the rare earths required for smelting and purification next year during this industry conference. The key to our entire plan is to create an illusion of oversupply of rare earths, so that these foreign Given their nature, they will definitely join forces to lower the price..." Yang Mo said in a low voice.

"Wouldn't this mean that rare earths have become even more expensive?" Zhao Hengbo said in surprise.

"Foreign-funded enterprises have formed price alliances to join forces to lower prices. We can also secretly form price alliances to hoard and compete for pricing power, just like Sumitomo Corporation did in the London copper futures trading!" Yang Mo continued.

Zhao Hengbo became more and more confused as he listened, and asked in confusion: "Since we are establishing a price alliance, shouldn't we create an atmosphere of tight supply of rare earths? Why do we do the opposite and create a panic about oversupply? There are so many For their own selfish interests, rare earth mining companies will contact foreign businessmen privately and sell rare earths at low prices to compete for the market!"

"Mr. Zhao, if the price of rough-processed rare earths is raised in the short term just through price alliances, it will have almost no impact on these foreign smelting companies. They can absorb the rising raw material costs by raising the price of refined rare earths!" Yang Mo explained.

Zhao Hengbo immediately figured out the key and asked thoughtfully: "You mean to make foreign-funded enterprises feel that the supply of rare earths is oversupplied. In order to lower prices, they should not sign raw material contracts in a hurry, but first sign a sales contract for refined rare earths!"

Yang Mo stretched out his thumb and praised: "Mr. Zhao is really not simple. The plan we have been planning for a long time was seen through by you at a glance!"

Zhao Hengbo shook his head and smiled bitterly: "But those buyers of refined rare metals are not stupid! There is an oversupply of rare earths, so how can they rush to place orders? Also, even if a sales contract is signed in advance, even if the raw materials increase by 10-20%, these Even foreign-funded enterprises with deep pockets will not break their muscles!”

"Since Mr. Zhao intends to have in-depth cooperation with Zhiyuan Group, I also want to tell you a big news. In order to cooperate with our rare earth war, the country will launch a pilot project of light rare earth futures. This is also the main reason why we hunt down foreign rare earth smelting companies. The battlefield!" Yang Mo said in a deep voice.

"Rare earth futures pilot?" Zhao Hengbo asked with his eyes widened.

"Yes! From this you can also see the country's determination to rectify the rare earth industry!" Yang Mo nodded.

"Creating the illusion of oversupply in rare earth mining, tempting foreign rare earth smelting companies to join forces to lower prices, and short-selling in the futures market to hedge risks?" Zhao Hengbo instantly figured out the logic behind the entire plan.

"The entire plan is interconnected. There can be no mistakes, and more importantly, no information can be leaked!" Yang Mo said in a deep voice.

After Zhao Hengbo pondered for a long time, he said with concern: "Mr. Yang, your plan is clever, but it is not easy to complete and you will face many problems!"

"Tell me, what problems will you face?" Yang Mo asked with interest.

"First of all, we will face financial problems. We need to purchase rare earths mined in medium and small mining areas. This alone may require billions of funds. The futures market uses a lot of funds, and the biggest problem is still It’s not about funds, it’s about people’s hearts!” Zhao Hengbo said worriedly.

"People's hearts?" Chang Yonggui couldn't help but ask.

"Yes! Brother Chang, you are a senior in the non-ferrous metal industry. Once the plan goes as smoothly as we want, and the rare earth ore rises sharply, and the wealth is attractive, some people will be unscrupulous, violate the cooperation agreement, and secretly sell the mined rare earths. To foreign smelting companies, the price alliance is bound to collapse!" Zhao Hengbo explained.

"No, Mr. Zhao, you may not know much about our Zhiyuan Group. Zhiyuan Group will never put its destiny in the hands of others and is willing to cooperate with us. All companies participating in this rare earth industry rectification plan need to be designated by Zhiyuan Group The company secretly signed a rare earth purchase agreement and sold all the rough-processed rare earths mined in the next year to the Zhiyuan Group at market prices!" Yang Mo said without doubt.

Zhao Hengbo smiled bitterly and said: "Isn't this inappropriate? Since it is cooperation, of course profit sharing is required. Otherwise, why would other rare earth mining companies take such big risks to cooperate with you?"

Yang Mo chuckled and said: "Isn't it right? The risk is almost borne by the Zhiyuan Group independently. Didn't you sell all the rough-processed rare earths at market prices? And we, the Zhiyuan Group, need to raise tens of billions of funds to come After completing this plan and kicking foreign businessmen out of the industrial chain, won’t all of you benefit?”

Zhao Hengbo argued: "Mr. Yang, you can't say that! Cooperation means sharing the same interests and forming a community of interests. Tie all participating rare earth mining companies to the chariot of your Zhiyuan Group, so that everyone can do it If we work together, we won't fall out of control at critical moments, or even betray..."