Chapter 447 Idea Contest
After the news that the province of Bosnia and Herzegovina would establish a strong province of heavy industry spread, it immediately caused a sensation in the capital circle.
The layman watches the fun, the layman watches the doorway.
Heavy industry has always been a big investment, and a long-term investment. It is normal operation for an investment that cannot be recovered for several years or more than ten years.
Likewise, once the industry gets bigger, the profits will be much higher. This threshold alone eliminates most competitors, and there are far fewer competitors in heavy industry than in other industries.
At present, the Austrian economy has just emerged from the crisis and is developing at a high speed. The demand for steel and copper has greatly increased, and the supply is in short supply.
In theory, as long as they are produced, these two products will not worry about selling at all. However, this is only modern, to join this industry, it is not a day or two to have results.
According to past experience, it takes at least two or three years from the beginning of finding a suitable factory to the launch of the product.
In fact, the time required is longer. Not to mention internal preparations in advance, such a large investment must be organized by professionals for prospecting, comprehensive cost assessment, and transportation, and market analysis is also indispensable.
In this era, there are not so many professional institutions to do the work on their behalf, and all of them have to be organized and judged by investors themselves. These are not enough. Even if you invest in a bank loan, the cost of the initial investment is at least hundreds of thousands of Aegis.
Suffice to say, it knocked most of them out from the start. Don't come if you don't have money. This industry is a special event for capital predators, and small workshops now have no living space.
It is impossible to be a white wolf with empty gloves. Banks are all privately owned, and each one is more strictly audited than the other. There is no collateral, and no one wants to lend huge amounts of money.
In this era, heavy industry investment has already climbed to millions of Aegis, even if it costs tens of millions of Aegis, it is not impossible.
The most valuable is not the machinery and equipment, but the mines that produce the raw materials. There is no shortage of cheap mines in Austria, but since it is cheap, it also means that the difficulty of mining has greatly increased, or it is a poor mine with a certain mining value.
Experienced practitioners know that this is not cheap. If the production cost cannot be controlled, it will be cool in the event of an economic crisis.
As for the separate operation of mines and smelters, it does not exist. The most popular ones are group-based and industrial chain-based, generally one-stop service from upstream raw material production to downstream product sales.
Industry fragmentation, which is based on the fact that local raw materials are exhausted and must be purchased from outsiders. This increases costs substantially, and capitalists don't like it.
At present, the biggest problem of the French industry is to import coal from the outside world, which increases the cost of the industry, which is why Napoleon III stared at the Rhineland region.
The Starbucks Club in Vienna, you can see that it is Franz's bad taste when you look at the name. Most of the well-known companies in his memory have been made in advance.
Of course, a lot of things may have changed. Time has passed for too long, and memory errors will also occur. Sometimes vague memories, companies with the same name have very different business scopes.
Michelin can become an ice cream brand, and Country Garden can become a park. There are many company names that have been played up. If there are more people who pass through, they will definitely be confused.
These changes are destined to be unknown. Several middle-aged people in the box are playing bowling and chatting.
A middle-aged man threw the ball in his hand and asked with a smile, "Thor, are you really going to invest in heavy industry in Bosnia and Herzegovina?"
Thor smiled slightly and said, "All in, Wells, your technique has improved again."
He stepped forward, threw the ball out of his hand, sighed, and then added:
"Yes, I have plans in this regard. At present, most industries in China are saturated, and emerging industries seem to be very profitable, but we can't play.
The advantages of the Austrian New Energy Power Company are too great. Even if we join in now, we can only follow them and eat.
It is unreliable to be in the financial industry all the time, the investment is too concentrated, and the ability to resist risks is too low. Although heavy industry has a large initial investment, it has great development potential.
Compared with emerging industries, these technologies are mature. You know, I still have a half-dead steel factory in my hands, and it's not completely without foundation to enter this industry. "
Several people present are shareholders of Austrian Savings Bank, and they are also the behind-the-scenes bosses of several securities companies. They even completed the transition of their identities and obtained the title of nobility.
However, these bigwigs also have a sense of crisis. With the normalization of the financial order, the risk of manipulating the stock market is getting higher and higher.
As a member of the emerging aristocracy, they also cherish feathers. No one wants to go through all the hardships to get into high society, and then get ruined in no time.
You must know that they are life-long aristocrats, and there is another name called: quasi-aristocrats, or aristocrats during the investigation period.
Usually at this stage, the veteran nobles will look at them with a magnifying glass. Once something is committed, it is easy to be knocked out of the dust.
Austrian titles of nobility are not cheap. It takes money to smash the title of nobility. If you are lucky, maybe tens of thousands of aegis are enough. If you are unlucky, you may lose a few million aegis.
The military knighthood system is full of discrimination against players like them. If you form a group to go to the colony to gain military merit, the people below will also share the profits, but not all of them will fall on the boss behind the scenes.
If you brush the title of nobility in the country, it will be even more difficult. It is only possible to obtain a knighthood if he has made a significant contribution to society and has been recognized by Franz.
Franz succeeded so much
Only two capitalists completed this feat in 2010. On the contrary, because of technological inventions, there are more than 20 scientists who have obtained the title of nobility.
Wells shook his head and said, "Thor, you are too optimistic. I think mining salt in Bosnia and Herzegovina is more profitable than industry, or at least returns faster.
The dominant player in heavy industry is the Austrian Iron and Steel Group. This state-owned enterprise has too great advantages and monopolizes nearly half of the domestic steel production.
It is too difficult to defeat them, but it is not as good as other industries. Even the newly emerging Austrian New Energy Power Company does not have such a big advantage. "
Thor threw the bowling ball out of his hand again and said: "It seems that it is difficult for us to convince each other.
Austrian New Energy Electric Power Company relies on a win-win cooperation model. It has conquered cities and conquered land in the European continent. Even in Britain and France, they have a large market share.
Although this share is potential, they have established a system, and most power companies have become their strategic partners, which will become a reality as long as there is no accident.
Once copper production increases and the cost of power equipment decreases, most of Europe's electricity supply will be monopolized by this alliance. I don't think the power company you are tinkering with will be able to break through.
On the contrary, the Austrian Steel Group is easy to deal with. They are state-owned enterprises and will not kill us except for normal business competition.
Until there is a change in supply and demand, there is no direct conflict for everyone. Such a long time has been enough for us to grow and develop. "
It is a fact that the monopoly established by the Austrian New Energy Power Company is mainly a standard system, and by the way, it promotes equipment.
Among the subsidiaries established in various places, the Austrian New Energy Power Company did not take the dominant position, and most of the shares were distributed, and some regions simply invested in technology.
This is the advantage of mastering the core technology. Even if it is not a major shareholder, the right to speak in the company is also not low, and there is no need to worry about being squeezed out.
As a latecomer, it is very difficult to break this monopoly. The biggest problem is that they have no core technology and cannot break through the patent barrier.
No one knows when they will be able to come up with another system. The market waits for no one. Once the standard is popularized, it will be difficult to intervene.
Can't dismantle the installed power supply network and replace it with their new technology standard? This is not a question of whether it will work, but why everyone should change.
Without enough interest, who would abandon the mature equipment and replace it with new electrical equipment that has not passed the inspection.
Unless they can come up with a new technical system before the technology is popularized, and apply it in practice, and achieve success, they will have the ability to compete.
Wells waved his hand with an innocent look on his face, and said, "Okay, I'm giving up on persuading you. But, my friend. Who told you that I was going to compete with them?
It is true that I invested in a power company, but the strength gap between the two sides is too great. If I want to jump into the sinkhole of the power supply system, I can only become cannon fodder.
According to the engineers, not to mention bypassing patent barriers, even if there are no patent restrictions, it is impossible to copy their technology without three or five years.
This is a complete technical system, but it is not just a technology, it will not work without any link. Otherwise, the British and French will not buy the patent license, but start a new one.
The electric power company I invested in researches and develops the application of electric power in industry, and uses electric machinery to replace the steam engine on the market. The two parties are not competitors at all. "
In theory, these technologies have unlimited potential, but the investment required is not a small number. Wells' attempt to convince Thor was actually a matter of funding.
It's not that he doesn't have money, it's mainly that new technology research and development is full of uncertainty, and it is necessary to find someone to share the risk.
Judging from the current market situation, this new technology company has the shortest lifespan and is the main force in reducing the average lifespan of Austrian companies.
In contrast, the vitality of traditional enterprises is much stronger. It is normal to survive for 20 to 30 years, and there are many century-old companies.
After all, traditional industries are assets, and they can also be sold if they change hands. Many companies have changed hands many times and still survive.
In contrast, the high-tech innovation industry is different. If you are lucky enough to develop a new technology, then the enterprise still has value; if you are unlucky, if nothing is done, such an enterprise is completely worthless.
Companies without results will not survive long, and investors have limited patience, and no one will wait for them to sharpen their swords in ten years.
The shortest technology company only has a lifespan of a few months. R&D of a certain technology, because competitors come up with results first, they will be abandoned by investors that they have no potential.
The capital market is so cruel, the strong prey on the weak, and the fittest survive.
It is not surprising that capitalists are reluctant to invest in new high-tech companies. Not only is the risk high, but even the results obtained may not necessarily have commercial value.
As a result, most of the technological inventions and innovations in the 19th century were driven by individuals. After the results are achieved, the capital will rush forward to promote the technological revolution.
If it weren't for the sudden emergence of the Austrian New Energy Power Company, which built a city that never sleeps in Vienna, everyone saw the importance of electricity, and the power industry would not be popular with capital.
Even so, capitalists are also looking for ways to reduce risk. This is also the reason why the strategic expansion of Austrian New Energy Power Company can be so smooth.
This is a battle of investment ideas between the two. There is no right or wrong, only whether it is suitable or not.
Not entering the light industry fight is enough to prove the vision of the two. Of course, the economic crisis that just ended should also be an important factor.
Capital will not avoid risks, but capitalists have the instinct to avoid risks. Everyone knows that industries with overcapacity are sunset industries.
It is not easy for the sunset industry to survive, and it is obviously impossible to obtain huge profits.
Seeing the scene was a little embarrassing, Lawrence Lowski, who was traveling with him, changed the subject and said, "It's almost 12 o'clock, and it's time for us to have lunch. I think the beef in the restaurant next door is good, why don't you try it?"
Thor smiled and said, "I prefer their Kao Goose, how about you?"
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