Chapter 209: The Great Bluff!!_2
Joe Ga nodded as a matter of course, "Of course, it's us. I alone don't have the capacity to build a city, so of course we need everyone's power."
While speaking, Joe Ga looked at Joseph, who still seemed a bit confused. He smacked his lips and said, "OK, let's start from the beginning.
When coal enters Sangha Town, what do we need?"
"Coke!"
Hearing the unanimous answer from the group of young people, Joe Ga smiled and nodded, then patted Xiao Huang on the shoulder and asked, "How much is the domestic coke production equipment now?"
Xiao Huang decisively said, "A complete set of coke production equipment with an annual output of 100,000 tons is about 3 million US dollars. If it's second-hand, the price can be around 15% lower."
Joe Ga nodded and asked, "What's the usual profit for coke and coal dust?"
Xiao Huang paused, then checked some information and said, "This can't be compared to the domestic market, but under normal circumstances, the price of coke is between 180 and 230 US dollars per ton, while the price of coal fluctuates based on the quality of the coal and the market conditions, with the lowest being 80 US dollars and the highest can reach about 150 US dollars."
Joe Ga looked at Joseph, who was staring wide-eyed, calculating in his head. Smiling, he said, "What do you think of this business?"
Joseph nodded subconsciously, then finally realized Joe Ga's idea. He said incredulously, "You want to fund us to establish..."
The moment Joe Ga heard this, he hurriedly waved his hands and said, "It's not me funding you, but you making the investment yourselves. If I'm the one shelling out the cash, how can you make a fortune?
Only when you put in the real money will those profits fill your own pockets."
As he spoke, Joe Ga patted Xiao Huang on the shoulder, saying with a smile, "What I can do is help you contact the equipment suppliers, contact technical experts, and arrange all the technical guidance you need.
Of course, these are going to cost you money. I can only ensure that their demands won't be excessive.
Let's get back to coke. Do you think this business is workable? Who wants to do it?"
"I do!"
No sooner had Joe Ga's words fallen than Mary Aenola, who had been listening from the periphery, smiled and raised her hand, "I will take charge of the coke, and I can promise to increase the production of coke at any time according to the output of steel."
As she spoke, Mary Aenola looked at Joe Ga with a smile and said, "I think, now that we have coke, I can negotiate with our president about establishing a power plant in Sangha Town. The new Sangha Town will definitely need a sufficient power supply."
Joe Ga was taken aback, then gave a thumbs-up, selectively forgetting Miss Ainola's intention to monopolize the Central African coke industry expressed in her words.
He clapped his hands vigorously to attract the attention of all the young people, then said with a smile, "You see, you were too slow to react. Now you have no part in the coke factory.
Now let's talk about blast furnace iron making and converter steelmaking..."
With that, Joe Ga signaled to Xiao Huang.
Xiao Huang, with a smile on his face, said, "If the requirement for the condition of the equipment isn't high, um, I mean if second-hand is acceptable, then you have a range from 100,000 to 2 million in capacity available.
Following the average coke ratio, every 0.7 tons of coke can produce a ton of steel. So, if a factory with an annual output of 100,000 tons of coke is established, it means that Sangha Town would need at least an annual output of 140,000 tons of steel to consume this coke.
Um, the equipment is quite cheap. Without counting the cost of transportation, 200,000 US dollars can buy the equipment needed for a small steel plant with an annual output of 10,000 tons. Of course, second-hand would be even cheaper.
With a larger investment, you could try building a 300 cubic meter blast furnace. Assuming a cost of 50,000 US dollars per cubic meter, plus the investment in other auxiliary equipment, it would only take 18 million US dollars to establish a modern factory with an annual output of 250,000 tons of steel.
My personal suggestion is for multiple people to come together for a joint investment in a modern plant, as it produces less pollution and is more efficient."
Joe Ga patted Xiao Huang on the shoulder, cutting off his speech. Thinking that expecting this group of people to raise 18 million was unrealistic, as they would end up with their brains beaten out if they had a meeting about it.
Looking at the young people with shining eyes, Joe Ga said with a smile, "Well then, let's calculate based on an annual production of 20,000 tons. Can anyone tell me the current price of steel?"
Joseph raised his hand and said, "The current market price for steel materials is between 500 and 900 US dollars, perhaps even higher."
Joe Ga shook his head with a smile and said, "That's the price for finished steel products like rebar and steel plates, special steel higher in price is not what we should consider. But if you could also invest in a rolling mill, then this price would be correct.
Okay, let's assume the lowest price of 500 US dollars per ton. So, am I right to calculate that as long as someone is willing to initially invest around 500,000 US dollars to establish a small-scale steelmaking and rolling mill with an annual output of 20,000 tons, they could earn an annual sales revenue of 10 million US dollars?
I remind you, Europe and America are all engaged in carbon neutrality, and steel production is shrinking, which will cause the price of steel to rise.
Now tell me, isn't this a profitable business?"
Joseph exchanged glances with his companions, then nodded and said, "Yes!"
Joe Ga looked at the group of young people, who were still a bit dazed, and said with a smile, "Would you like to do this business?"
"We would!"