Chapter 24: Sanquan Plastics Factory

"Boss Yu, welcome, welcome!"

Although Yu Yang had walked over, the plastic factory was only separated from the glass factory by a single wall, so they had long since heard the commotion from the other side. They even knew that the glass factory had secured a million-dollar order, which not only resolved the issue of placing laid-off workers but also paved the way for capital injection and expansion. It was enviable!

As the owner of the plastic factory led Yu Yang into the facility, he racked his brain to recount the history of his company. In the past, all means of production belonged to the public. The Sanquan Plastic Factory was naturally one of those enterprises that had transitioned from state-owned to private. It faced the same familiar set of problems: assets being sold off prematurely, the inability to place laid-off workers, years of accumulated debt that were difficult to reconcile, and struggles to pay pension funds for retirees.

However, the plastic factory was lucky; it had managed to keep pace with the changing times. Much like in the seventies and eighties, when heavy industry was lagging and light industry was lackluster, and aluminum products were requisitioned for aircraft manufacturing, people could only rely on enamel mugs, enamel basins, and tin buckets. But today, in economically developed cities, lightweight, inexpensive, and easily molded plastic products had become widespread. Plastic cups, plastic basins, plastic bags, plastic toys, plastic tables and chairs—Sanquan Plastic Factory had managed to survive precariously by producing food containers.

"While we are able to operate normally, our plastic raw materials—such as polyethylene, polypropylene, polycarbonate, and polystyrene granules—mainly come from resin, shellac, and rosin," the owner explained. "Domestic output of these materials is low, and most must be imported. We have limited capital and can only order small quantities, which leads to low production output and slow profitability, ultimately preventing the company from scaling up."

"Furthermore, manufacturing plastic goods requires calenders, bearings, blow molding machines, injection molding machines, extruders, conveyor belts, and even stamping presses. Most of these machines can only produce one type of product; if we want to change the style, we have to change the molds. Replacing a set of molds can cost anywhere from thousands to millions. This has become a major factor limiting our development."

"However, Boss Yu, rest assured: as long as we get the order, we will customize the molds and add relevant production lines immediately. We will never delay delivery."

Yu Yang nodded, observing the busy workers. The scale of the plastic factory was far inferior to that of the glass factory. Upon entering the premises, there were two offices on the left, a carport and six dormitories on the right, and a parking area in the middle. Straight ahead stood five large red-brick tile-roofed buildings. The sides of the rooms were stacked with numerous bags of plastic granules, canned catalysts, and drums of lubricants. In the center, arranged from east to west, were seven or eight old, paint-chipped machines. They all required manual operation—sometimes even manual assistance—and it was hard to find any sign of electronic systems, let alone smart numerical control.

Even so, the minimum valuation of this equipment was no less than 500,000. If one included the property, the land, and the existing business, 600,000 wouldn't be enough to secure it. This was the business intelligence Yu Yang had gathered after having the township head make inquiries through various channels and cross-referencing with the manager of the glass factory.

A short while later, after touring the factory, they arrived at the office. Once Yu Yang was seated, he got straight to the point: "Actually, I came here today because I intend to acquire your plastic factory."

"This..."

As previously described, the plastic factory was having a hard time. Its manager hesitated slightly. "May I ask what price you are offering?"

"I did my research before coming. You have been running this plastic factory for seven years, and the equipment is already slightly outdated. In the past few years, you mainly produced foam food containers. After the government issued a ban on those, your factory purchased new molds and switched to producing polystyrene instant noodle bowls and fast-food containers."

"That is correct, Boss Yu."

"How about this? To be honest, I am in urgent need of a transparent plastic packaging box made of a material similar to mineral water bottles. After I take over your factory, everything will continue as usual, and there is a possibility of expanding production in the future."

"Are you willing to take over the problems we currently face?"

"The issues of placing laid-off workers, paying pensions for retirees, and settling past debts—all of that will be left to me."

The factory manager breathed a sigh of relief. "Since Boss Yu is so straightforward, I won't beat around the bush: 650,000, including the factory area and the land. You can arrange for someone to verify the assets."

"No need, let's proceed directly to the transfer." Yu Yang was in a hurry to move his goods and had no time for asset verification. Upon hearing that the offer was reasonable, he agreed immediately. As for the factory and the land... he would leave them for now. Once the situation settled, he could resell them or compensate the city of Liao by investing in a vegetable market and a transit warehouse.

The factory manager, clearly not expecting the deal to be struck after only a few sentences, felt a bit dazed. The finance staff, sales team, and workshop supervisors who accompanied the discussion realized they weren't losing their jobs and would be working for a more promising boss in the future. They immediately suggested a casual lunch and finishing the transaction in the afternoon. The manager realized this was the right thing to do and immediately pulled out his phone to contact a large restaurant and book a private room.

...

A short while later, at the Liao City Grand Hotel, everyone sat down in turn. Drinks were served, dishes were brought out...

As the host, the plastic factory owner started the conversation. "Mr. Yu, if I may be so bold, what are you using the transparent plastic boxes for?"

"Oh!" Yu Yang was about to explain when he caught sight of the dishes on the table and was surprised to see that his own bean sprouts had reached Liao City. He immediately picked up his chopsticks and grabbed a few. "Try this?"

Everyone didn't dare refuse and had no choice but to eat.

Yu Yang asked, "How is the taste?"

"Very good, fresh, crisp, and fragrant, with a faint aroma of soybeans," the factory owner said, racking his brain to compliment the food.

"To tell you the truth, these bean sprouts are nine times out of ten supplied by my family."

"Oh?"

"There is an expressway near my home. A while ago, a truck delivering vegetables to Walmart in Beijing accidentally overturned. It was carrying nothing but out-of-season bean sprouts. I took the opportunity to ask the driver, 'How much are these?' I never expected the driver to just hold up five fingers."

"Fifty cents?"

"That wouldn't even cover the shipping costs! Five yuan!"

"Holy cow!" everyone exclaimed.

Yu Yang continued, "Even without thinking too hard, you know there’s profit in this—and big profit at that." Everyone nodded in agreement.

"It just so happened that the driver lost his cargo and his truck was gone too..."

"Why was the truck gone?"

"The people in our area are honest and simple-minded; they think that if they pick something up, it belongs to them."

"..."

"Of course, that's not the point. The point is that the driver didn't dare go back, so I got him to teach me how to grow bean sprouts. Hey, guess what happened?"

"It must have been a success!"

"Exactly. Not only was it a success, but it was an instant hit. A portion the size of two palms sold for two yuan. Vegetable vendors from all over the ten miles and eight villages were lining up to buy them wholesale."

"Boss Yu, you’re making a fortune!"

"Yes, later I set up 11 plastic greenhouses. Not only the vegetable vendors, but even the owners of the semi-trailers in Quanpu switched to selling bean sprouts."

Before he could finish, the factory owner slammed the table. "Boss Yu, let's not do the transaction yet. You give me the plastic factory, and you prioritize giving me the bean sprouts. Once the payment for the goods accumulates to 650,000, we'll finalize the deal."

"???"

"If you don't agree, I'm not selling the factory!"

"..."

The reason the factory owner was doing this wasn't on a whim, nor was it because he intended to switch professions based on a few words. It was because Quanpu was not far from Liao City. Anyone involved in the transport industry would know where the semi-trailers were bought. Therefore, he actually knew that some semi-trailer owners in Quanpu had gone off to sell bean sprouts. Or rather, every owner of a semi-trailer in Quanpu was planning to enter the industry—or at least take advantage of the winter and the end of the year to make some quick money. After all, once a trailer was built, it was better to use it for transport than to let it sit idle.

Most importantly, the plastic factory primarily produced instant noodle bowls and fast-food containers. They were in constant contact with instant noodle factories and the catering industry. Some of the instant noodle factories had special flavors that used soybean sprouts as a kimchi packet; if they replaced regular soybean sprouts with bean sprouts, the taste would likely be better and could become a selling point. As for the catering industry, it went without saying—stir-fries, cold dishes, soups...

"I'm going to make a fortune!" The factory manager thought of his notebook filled with contacts, his familiar buyers, and the big client, the instant noodle factory. Excited, he raised his glass and downed it in one go. He then slammed the glass on the table. "Is it a deal or not?!"

Yu Yang shivered, "It's a deal, definitely a deal!"