Chapter 962 Resource Utilization
More than a month later, a company called Pantong Technology was established in Shanghai in a low-key manner.
There are two bosses of this company, one is Sun Yaoliang and the other is Lu Hairong. The company's main business is divided into two parts, one is investment and the other is recycling of resources.
The former is easy to understand. This business is basically similar to Shenghua’s investment company, mainly seeking suitable companies for angel investment.
Angel investment originated in the United States in 1978. Although it has not been around for long, it has developed rapidly in recent years. Angel investment has now gradually replaced the original traditional investment and has gradually become the mainstream of the investment community. Song Yuanchao's Shenghua Investment and several investment companies under Shenghua Investment are currently mainly engaged in the same investment work.
As for the latter, it sounds a bit high-sounding, but in reality it is not that great.
Recycling resources, literally understood, is nothing more than the acquisition, integration, utilization and sale of those resources that can be recycled to gain profits. But in fact, this high-sounding industry can be described by a simple and easy-to-understand name, which is "junk collection".
Collecting junk is not a new thing for ordinary people. When the newspapers, toothpaste tubes, glass bottles, metal parts, etc. accumulated at home on weekdays reach a certain level, they can be sent to the scrap station for recycling. Or when you hear someone ringing a bell and shouting outside, and when a junk collector rides a tricycle through the streets, you can give these things to him in exchange for money.
Scrap collectors collect these things, sort them into categories, and then sell them to factories that need raw materials, making money from the difference. This process is considered recycling resources.
Both Sun Yaoliang and Lu Hairong graduated from prestigious universities. Sun Yaoliang once worked at Sitek, where he was not only the general manager of the sales company, but also the vice president of Sitek Group. Lu Hairong, as a college student who went abroad to study after the reform and opening up, obtained a doctorate degree overseas and now teaches at Columbia University, the youngest Chinese professor in the business school.
One of these two people is a business elite, and the other is a veritable scholar and expert. The fact that they chose this industry to start a business together is bound to be surprising, and even shocking.
What else could these two people do? Why did they choose to collect junk? It's unimaginable. With their experience and connections, they should have been involved in international trade or something even if they didn't do real estate? Collecting junk? Aren't they afraid of losing their status?
However, no matter how others could not watch, Song Yuanchao was very optimistic about their choice. Song Yuanchao had to admit that Sun Yaoliang and Lu Hairong were unique in starting their business from this perspective, and their choice was the most feasible and successful at present.
Don't underestimate the scrap collecting business. In fact, every industry has its own advantages, and it is not easy to do your job at the forefront.
With the deepening of reform and opening up in recent years, the domestic economy has developed at a very fast speed, and it is no exaggeration to say that the development of various industries is changing with each passing day. The rapid economic development has also promoted the construction of cities. Compared with more than ten years ago, not only cities, but also rural areas are changing at a speed visible to the naked eye.
Various enterprises have sprung up like mushrooms after a rain, and the future world factory has already taken shape. Exports are growing continuously and domestic demand is also rising.
For this reason, the domestic industries have a huge demand for raw materials, and many raw materials cannot be met by domestic supply alone, so most of them can only rely on imported raw materials. However, the import prices of raw materials are high, and the domestic demand continues to grow, resulting in the international prices of many raw materials continuing to rise, thereby increasing production costs.
In this case, the use of renewable resources has become a substitute for this demand. In the use of many raw materials, the use of renewable resources can account for a large proportion, including metal renewable resources, such as scrap steel, etc.
In addition, in the beverage packaging of fast-moving consumer goods, that is, the production of plastic bottles, recycled resources also account for a large proportion. The raw material for the production of plastic bottles is plastic particles, but the production cost is too high if all plastic particles are used in production. According to the process, a certain proportion of recycled plastic bottles and broken plastic flakes can be appropriately added as a supplement, thereby reducing production costs.
Of course, the two types of recycled resources mentioned are only a small part. The scope of recycled resources utilization is extremely wide. In addition to these, it also includes the recycled resources of various products in various other industries, such as paper, glass, etc.
This is a huge market with great business opportunities. Recycling of resources has become a huge industry abroad, but it is still in its early stages in China. Domestic recycling of resources has not yet formed a truly professional and technological structure. Sun Yaoliang and his team started from this perspective, and we have to admit that they have a unique vision.
In the past, the scale of the recycling industry in China took two or three years to develop, and reached its peak around 2000. However, around 2004, as the recycling industry continued to expand, some businessmen directly brought "foreign garbage" from overseas to China for landfill in order to make profits, which led to the deterioration of environmental protection.
Taking this factor into consideration, policies have imposed restrictions on this industry, proposed a registration and access system for companies operating in this industry, and set approval thresholds for operations. This has curbed the disorderly development of this industry and eliminated a large number of companies that claim to be utilizing recycled resources but are actually engaged in the profit-making business of recycling foreign waste, ensuring that the environment is not affected.
Pantong Technology's recycling business is currently focused , which are the two businesses with the largest resource demand in China.
As for the former, with the rise of real estate and local construction, the scale of steel enterprises in various places has continued to expand. In addition, private capital has begun to enter this industry, which has led to the prosperity of steel mills and iron mills, resulting in a continuous increase and gap in demand for ore raw materials.
China is rich in iron ore resources, and its ore reserves are among the highest in the world. However, due to the low quality of the ore and the high content of other elements in the ore, the cost of refining and using it is not optimistic. From this perspective, the use of domestic ore can only serve as a supplement in smelting, while the use of imported high-quality ore is more suitable in terms of production efficiency and cost, which has led to an increase in overseas demand for this resource.
In this case, the best option is to partially use recycled resources for recycling in production. In foreign countries, because Western countries developed earlier and resource recycling is more complete, especially the United States, which is known as the country on wheels. The proportion of car ownership is the highest in the world, and the number of vehicles scrapped and disposed of each year is astonishing.
After these vehicles are scrapped, they are usually directly pressed into iron blocks by special hydraulic presses and then piled up. Some local governments even pile them up directly due to insufficient funds. Many of these places are called "car graveyards" without exaggeration. Looking at the endless densely packed with all kinds of scrapped cars exposed to the sun and rain.
In addition, there is the separation of Big Brother. With the incident in Big Brother's family, the world's original two poles became one pole, and the previous confrontation became history, which led to many changes in the international situation. Some military equipment became scrap like scrapped cars, and were left there with no one interested. Even warships and cruise ships were dismantled in large quantities, resulting in countless similar materials.
In foreign countries, the cost of handling these things is too high, and the saturation of production makes them of little value for recycling. But in China, it is different. These things that no one wants abroad have become treasures in China. As long as you spend a very small price to buy them, and then pack them and ship them back to China, they will be excellent resources for recycling, and the benefits are huge.
The latter's waste plastics have similar reasons. Let alone developed countries in Europe and the United States, just take Japan across the sea. Japan produces a huge amount of waste plastic bottles a year, but there is not much demand for their treatment and recycling, so Japan worries about the ever-accumulating waste plastics every year.
In China , with the development of economy and the continuous growth of fast-moving consumer goods market, the demand for such raw materials is huge. It also has huge commercial benefits to ship these unnecessary and urgently needed things from Japan and other countries to China for recycling.
After the company registration was completed, Sun Yaoliang's office was directly set up in Shanghai, but the current office is just a transition. After Shenghua's building in Jiangdong is completed, the company will move to Shenghua Building. Song Yuanchao gave Sun Yaoliang and others a very generous price, basically reserving a floor for Pantong Technology at cost price. Sun Yaoliang and Lu Hairong were not pretentious. For them, this was just a small matter. What's more, when Pantong Technology was established, Song Yuanchao also invested some money in the company as a shareholder. It can be said that the money is kept within the family.
Lu Hairong returned to the United States soon. This time he was going to resign from his job at Columbia University and open a branch in the United States. As the branch of Pantong Technology in the United States, it would be mainly responsible for the later business work.
Sun Yaoliang was also busy. After recruiting and arranging the company's personnel and establishing the company structure, he took a few people to Japan to negotiate the business of waste plastics and other recycled resources with Japan.
Everything went very smoothly and Pantong's business was officially launched. By June alone, Pantong Technology's recycling business had shown very good development. Relying on huge profits from several trades in Europe, the United States, Japan and other places, Pantong Technology not only opened up the situation but also made a lot of profit. The entire company was thriving, which made Sun Yaoliang very ambitious.
