Vast Land, Supportive Policies!

Chapter 42: A Thousand Acres of Land, Support Policies! (Third update, please read!)

The squeaky wheel gets the grease. Of course, the more funding, the better. Even without funds, other things are also very good.

It all depends on the local government's resolve in supporting the Jiuzhou Automobile Factory's development and construction.

Chen Qianjun fully affirmed Xu Yifan's considerations. "As expected of a capable factory director, Director Xu's considerations are very comprehensive. He's not only thinking about the potential crisis the factory might face and preparing an alternative path, but also anticipating market changes and making the worst-case scenario plans.

His thinking is clear and he's driven to advance!

He also has his own technical accumulation. To be able to achieve this is truly excellent.

I am very optimistic about the Jiuzhou Automobile Factory. A quality factory naturally deserves the government's support!"

On the other side, the faces of the Jiuzhou Automobile managers were already showing smiles.

Chen Qianjun continued, "However, we still need to discuss some details.

Regarding the new two-wheeled electric vehicle production plant and battery production plant that the Jiuzhou Automobile Factory plans to establish, how many employees does Director Xu plan to hire, and how much capital will be invested? Could you elaborate?"

Xu Yifan stated seriously, "The initial plan is to invest fifteen million, establish a battery production plant with an annual output of 10 GWh, and create approximately five hundred job positions.

The production capacity will be sufficient for the Jiuzhou Automobile Factory's needs for the next few years."

The number of employees for just one component is already comparable to the current workers on the Jiuzhou Automobile Factory's production line.

Keep in mind that batteries are not as complex as the entire electric vehicle, which shows the scale of this battery production plant.

"In addition, for the two-wheeled electric vehicle production plant, we plan to invest around ten million. Upon completion, it will require approximately five hundred employees as well, with a planned annual output of around two hundred thousand vehicles."

After outlining the general plans for the two factories, which would be considered moderately sized, Xu Yifan said with some helplessness.

"Actually, in my opinion, it would be better if both factories were several times larger.

I have great confidence in our products. With the advantages of being first to market and having technological superiority, we can definitely capture a vast market share.

Not the entire national market, but at least a significant portion of the provincial market share.

The only problem is the current lack of funds."

Pretending not to understand the implication in Xu Yifan's words, Chen Qianjun murmured to himself.

"A total of twenty-five million is quite a significant investment, creating a thousand job positions! Combined with the existing five hundred employees at the Jiuzhou Automobile Factory, it would be considered a large enterprise in Jiangzhou City!

If the scale were even larger, it could even become the largest manufacturing enterprise in Jiangzhou City!"

Compared to more than a decade later, in a fifth-tier city in mainland China at this time, a few hundred employees could be considered a major local factory, which is very appealing.

The only issue is that these are still just imaginations.

Tapping his fingers lightly on the table, Chen Qianjun fell into thought. The others around him did not disturb him.

After a long while, Chen Qianjun finally spoke.

"How about this: the Jiuzhou Automobile Factory will need land to establish the two-wheeled electric vehicle plant and the battery plant.

Currently, the Jiuzhou Automobile Factory is still a bit small; it's impossible to build two large factories within the existing plant area.

Jiangzhou City can offer some preferential policies to the Jiuzhou Automobile Factory regarding land use.

Two hundred acres of land!

If, within the next three years, the Jiuzhou Automobile Factory builds the battery production plant and the two-wheeled electric vehicle production plant as Director Xu just envisioned, and along with the Jiuzhou Automobile Factory, the total number of employees reaches over fifteen hundred, and it continues to operate profitably for more than a year.

Then, the two hundred acres of land will be sold to the Jiuzhou Automobile Factory at a preferential price of ten thousand yuan.

If the scale does not reach what I've described, the Jiangzhou City government will reclaim the land based on the situation or sell it to the Jiuzhou Automobile Factory at market price.

Regarding funding, the Jiangzhou City government can provide a guarantee to the Jiuzhou Automobile Factory for loans from China Merchants Bank, using the Jiuzhou Automobile Factory's equipment, automobile production qualifications, brand, production lines, and other valuable collateral.

Approximately one hundred million yuan can be loaned.

If the Jiuzhou Automobile Factory registers its own battery patents and possesses the technical capability for large-scale production of new lithium iron phosphate batteries, then this loan amount will increase further. This is the extent of the help the government can provide at this time, Director Xu. What are your thoughts?"

Chen Qianjun explained the support plan.

Xu Yifan's mind raced.

Within three years, establish the battery plant and the two-wheeled electric vehicle plant, reach a total of fifteen hundred employees, and maintain profitability for at least one year to obtain almost free land of two hundred acres.

These terms are quite good for both the government and the enterprise.

For the enterprise, the government provides support, and regardless of the outcome, the land use is essentially free within three years.

If the set goals are met, they can acquire the land at a preferential price, saving a significant amount of capital.

At this juncture, with the real estate market about to take off, such a large tract of land will have immeasurable future value!

For the government, it's naturally better if the enterprise develops to a certain scale, driving local economic development and employment. The expenditure of two hundred acres of land is entirely worthwhile.

If the enterprise encounters any problems, the land can be reclaimed under the agreement, with no significant actual losses.

Furthermore, the loan is a relatively conservative method, based on collateral. At worst, the bank would take everything the Jiuzhou Automobile Factory possesses.

Honestly, Xu Yifan was very clear about the situation three years from now. The price of vehicle production licenses would skyrocket, and along with the Jiuzhou Automobile Factory's equipment, it would be enough to cover the loan amount, with even some left over!

The worst-case scenario was simply going home to inherit the family business, and he'd probably be able to bring back some money too!

The plan was actually quite good, and it would truly help the current Jiuzhou Automobile Factory.

With more ample funds and a very large plot of land, they could really expand.

However, since they were already taking out a loan and had entered into a sort of bet, why not go bigger and do it all in one go!

Extending a single finger, Xu Yifan calmly said, "One thousand mu of land. Within three years, I will have the Jiuzhou factory's employee count reach ten thousand, achieve profitability, and operate normally!

In addition to this, I hope to receive two hundred million in loans, in two installments!

One hundred million will be secured by the Jiuzhou Automobile Factory's current factory buildings, equipment, land, the production and appearance patents for the Jiuzhou Mini, and the automobile production qualification.

The other hundred million will be secured by the new battery production plant, the new lithium iron phosphate battery technology, and the two-wheeled electric vehicle production plant that the Jiuzhou Automobile Factory will build next.

If that's not enough, I still have luxury cars worth about ten million in total, and a villa in Jiangzhou City worth about two million."

If you don't go mad, you won't survive. More funds and more land could solve the Jiuzhou Automobile Factory's development problems for a long time to come, all in one step.

With no major financial pressure or land pressure, coupled with the system Xu Yifan possessed, there was absolutely no way he could lose!

If, by some slim chance, he did lose, it would just prove he wasn't cut out for this, and he'd just go home and live off his parents!

Xu Yifan's words caused everyone present to fall silent for a moment.

This young man had great ambition and a huge appetite!

However, if he could truly succeed, both sides would benefit greatly.

Jiangzhou City would gain an economic pillar, directly impacting ten thousand jobs, and the immediate families of these individuals, numbering tens of thousands, would become wealthier.

At the same time, it would bring more prosperity and consumption to the entire city. A large enterprise could benefit an entire city!

As for the losses, if the desired outcome wasn't achieved, the land could be repossessed, and the loans would be the bank's problem.

After a long pause, Chen Qianjun gritted his teeth and spoke.

"I can temporarily agree to your conditions, but whether it's ultimately approved will require me to convene a meeting and report to my superiors after I return.

If there are no issues, the Jiangzhou government will accelerate its support and promotion efforts, aiming to finalize the written agreement within the next week or so!"