Bab 236: Chapter 236: Trade Tycoon Victor
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Victor scanned the crowd, noticing a man in his forties wearing a suit and exuding energy. Victor recognized him as a member of the prominent Lee family in Hong Kong.
"No problem," Victor responded with a nod.
As people saw that two production lines were still available, someone immediately announced, "Mr. Victor, my friend Hu Xinrong is interested in partnering with Hardy Group to start a rubber shoe factory."
Another person added, "I, He Song, am willing to collaborate to open a zipper factory."
The crowd quickly became animated, with many eager to sign up. Victor, however, calmly addressed them, "Everyone, there are still many details to discuss regarding these partnerships. Please take a look at the equipment and return to our company for a detailed discussion."
He continued, "Hardy Group is involved in various industries beyond what you see here. If you have other interests, feel free to bring them up, and we can discuss potential collaborations."
Upon hearing this, the crowd settled down, understanding that establishing a factory involves significant investment and careful consideration.
After inspecting the machinery, the attendees moved to the Hardy auction house. The influx of people made the once spacious company seem crowded.
Victor distributed lists detailing the machinery and equipment, including available models, annual output, and investment requirements.
For instance, the iron nail production line, which included two polishing machines, two wire drawing machines, and thirty nail-making machines, could produce six models with an annual output of 4,000 tons. This setup cost $120,000, approximately 900,000 Hong Kong dollars.
This was the standard price for second-hand machines. Victor acquired these from Hardy's U.S. warehouse, where the cost was significantly lower, so he didn't need to mention the actual cost.
Establishing a factory also required additional investments in land, construction, workers, and raw materials, totaling around $170,000.
Potential partners could decide on their investment amount. Hardy Group didn't need to be a major shareholder but required retaining at least 40% ownership.
What intrigued many businessmen was the arrangement: they would handle the factory operations while Hardy Group invested and oversaw the factories.
Victor made it clear that Hardy Group was using surplus machines to generate substantial profits in Hong Kong. He encouraged attendees to review the reserve prices and consider collaboration before returning to him with their decisions.
When asked what would happen if multiple parties were interested in the same industry, Victor simply replied, "First come, first served."
As people left to discuss their options, some, eager to secure deals immediately, chose to sign contracts on the spot.
Victor then visited Governor Grantham. Grantham, a distinguished gentleman with white hair, was known for his high regard in future evaluations. Victor's activities had caught the attention of the Hong Kong administration, who sought to understand Hardy Group's intentions.
Grantham welcomed Victor, and after a respectful handshake and introduction, he asked, "What can I do for you?"
Victor smiled, "Hardy Group aims to build an industrial zone and seeks Governor Grantham's support."
"An industrial zone?"
"Yes, we have brought over a dozen factory production lines, including those for nails, rubber shoes, telephone lines, zippers, and more. We plan to partner with local businesses to set up these factories, which will create thousands of jobs."
"It will also contribute to Hong Kong's economic development and increase tax revenue."
"Moreover, Hardy Group plans to establish more factories in Hong Kong, turning it into a major manufacturing hub for Southeast Asia, China, Japan, North Korea, and other regions. The total investment may exceed $50 million."
Grantham was impressed. Given that Hong Kong's annual output value was only in the tens of millions of pounds, the proposed investment was substantial.
"Are you truly committed to investing $50 million?" Grantham inquired.
"Possibly more. Our headquarters is optimistic about Hong Kong, but this requires government support," Victor explained.
"What type of support do you need?"
"We need land. Hardy Group plans to build dozens of factories, requiring a large area for construction, including technical facilities such as roads, water, and electricity," Victor detailed.
"How much land are you seeking?" Grantham asked.
"Approximately 500 acres. We need space for factories, workshops, warehouses, and other facilities. A large industrial cluster will attract additional businesses," Victor responded.
Grantham was surprised by the large request but understood the need. He arranged for the land planning department to assist. In 1948, land sales were predominantly government-controlled, and while Hong Kong Island was densely populated, Kowloon offered larger tracts of farmland.
Ultimately, three plots were identified: one near Lion Rock, one near Kowloon Tong, and another along the seashore, which could be developed into a wharf and warehouse area.
The price for the 500 acres was set at just over $1 million, with the Hong Kong government also investing in infrastructure development, totaling another $1 million.
Victor, who had his own team, including U.S. and local hires, finalized the land contract. Meanwhile, he focused on another task.
Victor invited spinning mill owners in Hong Kong to discuss cotton procurement, offering a large supply of high-quality American cotton.
At a teahouse, mill owners gathered, each examining the cotton samples. Victor explained, "This is long-staple cotton from California, known for its high quality with an average length, strength, and fineness superior to other sources."
Victor offered the cotton at 2 cents per pound above the current market price, which was still competitive compared to smuggled cotton. The quality of this cotton promised higher yields and better thread quality.
Several mill owners placed orders on the spot, with demand totaling around 17,000 tons per month, much more than Victor had anticipated. This venture, combined with a shipping company, promised a substantial and profitable business.
A few days later, Victor extended another invitation, this time to powerful firms in Hong Kong, including British companies.
On a clear day, hundreds of prominent figures, including presidents and managers from major firms like Jardine, Swire, Hutchison, and Wheelock, as well as the Kadoorie and Ho Tung families, gathered at Victoria Harbour.
Victor greeted them and said, "Have you noticed the two freighters docked in the harbor? I'm curious if any of you are interested."
The crowd was intrigued.
"Mr. Victor, are you selling these cargo ships?" someone asked.
"Yes, Hardy Group is selling these large freighters. The smaller one, Liberty, has a capacity of 7,000 tons, while the larger one, Victory, can carry 15,000 tons. These ships were U.S. military transport vessels from World War II, and although they are relatively young, their prices are very low."
Liberty was priced at $800,000, and Victory at $1.5 million, a significant discount from their original values.
Many were surprised by the reduced prices. The four major shipping firms showed interest, with chartering options also available for those who couldn't afford outright purchases. The ships would come with a full crew and be able to fly the American flag.
Victor then invited everyone to tour the Victory ship. As they explored, the captain demonstrated the ship's capabilities and the weapons onboard for defense against pirates.
This added feature intrigued many, as the presence of heavy weaponry addressed concerns about maritime security.
Victor concluded, "If you're interested in renting or purchasing, we provide fully equipped ships, including weapons if needed. Our fleet is well-prepared to handle any threats."
The offer garnered significant interest, promising lucrative opportunities for those involved.
Bab 237: Chapter 237: Cargo Rotation for Land
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The Freewheel and Victory Wheel freighters are priced at only half of their counterparts in the market. Despite being second-hand, they are still highly attractive.
The Four Oceans Bank, while active in Hong Kong, also operates in the UK, India, and Europe. They have their own shipping business, notably through Jardine Matheson, which used to operate several routes in Mainland China. At one point, eight freighters were used for transporting goods to and from mainland China.
Foreign companies, too, have established their own piers in Hong Kong.
Following a visit, the foreign bank presidents and managers held a meeting. Jardine Matheson decided to order four ships—two Freewheels and two Victory Wheels—but requested Victor to negotiate the price.
Victor pondered for a moment before responding to the negotiating manager: "The price of the freighter can be discussed, but we have a condition."
"What condition?" the manager inquired.
"I understand you have land on the South Bay side. The Hardy Group is expanding in Hong Kong and is in need of land. We hope Jardine Matheson can transfer it to us," Victor stated.
The South Bay, which later becomes Repulse Bay and Deep Water Bay, is currently much larger.
The manager hesitated, saying, "Mr. Victor, I am not authorized to make such decisions. I need to seek further instructions."
"That's fine."
Upon returning, the manager reported to the president. After discussions with the board, it was decided that while the South Bay land was part of future plans, the development was projected to be decades away. The area is currently remote, with the journey around the mountains taking over three hours by car. It has only one resort built by Jardine Matheson, along with a few buildings and dozens of villas, mainly used for vacation purposes.
A director asked, "How much land are they looking to acquire?"
"I didn't specify, but they're looking for as much as possible. Given the Hardy Group's appetite, I doubt they'd settle for anything too small," the manager replied.
Another director suggested, "If they want more, we might as well give them the whole land and see how many ships we can get in return."
The president expressed concern, "Mr. Davis, if we hold on to the land for some time, its value is likely to increase. It seems unwise to sell it now."
Director Davis countered, "Are you worried about the domestic situation in China? With Chiang's forces struggling and the potential for the Communist Party to win, our investments in Hong Kong could become precarious if that happens. It's better to trade now while we can."
"If the Communist Party wins, they might reclaim Hong Kong, making our investments worthless. However, freighters can be relocated back to the UK if necessary, unlike land," he added.
Another director agreed, "Davis makes a good point. We need to think long-term. We have enough land on Hong Kong Island for our needs. Investing in the South Bay land now could be advantageous."
Ultimately, most voted in favor, and Jardine Matheson agreed to sell the land. A team was formed to finalize the deal with Victor.
"Mr. Victor, how much land do you need?" the president asked.
"We need as much as you are willing to sell," Victor replied.
The president presented a map. The land marked in red included the South Bay area, totaling 3,561 acres. It featured a resort village, and the highway investment amounted to $3.36 million.
"For the entire South Bay land, the price is $10.7 million."
Victor reviewed the figures, noting the land price of about $2,000 per acre, which was nearly on par with land prices in New York and Los Angeles. "No, that's too expensive."
"I can offer $1,000 per acre."
The president immediately shook his head. Negotiations ensued, with both sides leveraging their advantages. After two days, they agreed on $8.6 million for the South Bay land and associated buildings.
On the Hardy Group's side, they acquired four Victory Vessels and four Freedom Vessels. The cost of a Liberty Vessel was $80,000 each, totaling $320,000 for four. The Victory Vessel cost $1.5 million each, totaling $6 million for four, bringing the total to $9.2 million. With discounts, the final difference was $440,000, which Jardine Matheson provided in cash.
Victor was thrilled by the sale, given his commission of $46,000. Hardy was generous with bonuses, ensuring staff received their due rewards.
Swire Pacific also approached Victor to buy two freighters. When Victor proposed trading land, Swire Pacific offered a piece in Sha Tin, a small wilderness fishing village. The area, larger than South Bay and valued at $560,000, was far cheaper.
The deal involved covering the remaining amount in cash.
Hutchison and Wheelock, both owning docks, opted for leasing freighters. Hutchison leased six boats, and Wheelock four.
Chinese shipping magnates were also interested. Xu Aizhou, a prominent figure in the shipping industry, planned to buy a batch of freighters despite concerns about the ships' technology. He instructed his company to secure a bank loan, including from the newly opened Wells Fargo Bank, owned by the Hardy Group.
Dong Haoyun, a significant player in shipping, saw this as a rare opportunity. Though currently constrained by finances, he approached Victor with a proposal to take a stake in his company, Global Shipping, in exchange for investment.
Victor, intrigued, asked Dong to elaborate. Dong explained his company's assets and proposed that Hardy Group invest with a stake of more than 30%.
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