Chapter 397: Purchasing Another Ship and the Changing of the Chinese Ship King
"A thousand jobs?" Yang Wendong thought for a moment and said, "That number's a bit too high."
In Hong Kong, creating 1,000 jobs wasn't a big issue for the current size of Changxing Industrial. But in Europe or the U.S., that same number would be enormous. While it's hard to make a precise comparison, the required investment might be equivalent to hiring 5,000 workers in Hong Kong.
Sean replied, "Eric, that requirement is indeed steep. But if it weren't, the British government wouldn't be offering such favorable terms.
From what I've seen of your industrial scale here in Hong Kong, establishing a factory with 1,000 employees in the UK wouldn't be too difficult. Many of your products aren't suitable for long-distance shipping, so producing them in the UK could also serve the broader European and American markets. It's a win-win scenario. The British government hopes to attract enterprises that can genuinely thrive—only then can there be a long-term partnership."
Solving the dockworker crisis was important, but the UK's top priority was reviving its economy. With a relatively small domestic population, that revival needed to be export-driven, in order to stimulate job creation.
During its imperial heyday, Britain could dump manufactured goods into its colonies. But that time was long gone. Not only could it no longer dominate colonial markets, many colonial firms had become competitors. Meanwhile, the U.S. was circling from the outside. Britain had no choice but to maintain the illusion of free trade within the Commonwealth. Otherwise, the already fragile post-imperial network would collapse.
Under these conditions, attracting Commonwealth giants to invest in Britain was the most logical path forward.
Yang Wendong took a deliberate pause, sipping his tea, letting silence settle into the room before finally speaking. "Mr. Sean, I understand that the London government wants to absorb some of the displaced dockworkers with this initiative. So I'd like to ask—do the new hires have to be these workers?"
"Yes," Sean replied, understanding the question clearly. "The London government will organize the labor pool."
"But we will ensure that all job placements will take into account the candidates' capabilities and your company's requirements."
"If that's the case, then I'm afraid there's no deal," Yang Wendong said, shaking his head firmly. "The funding and employment scale are both negotiable. But recruitment is not. If I'm to invest, then I decide where the investment goes—within the UK, fine. But I will also decide who we hire."
Though he wanted cooperation with Britain, Yang Wendong had a bottom line. If that couldn't be respected, the deal would be off.
He wasn't expecting massive profits from this UK-based factory. It just needed to run stably. Even if it incurred losses, if other parts of the business benefitted from the strategic relationship, it would still be worthwhile.
However, the greatest pitfall of Western factories was labor unrest. Yang Wendong was willing to accommodate workers—but not without limits. If this issue wasn't resolved upfront, it could lead to serious problems down the line, and even sour relations with the UK government.
Sean fell silent for a moment before replying, "This matter will need to be further negotiated with the London city government. After all, the proposal came from them. It was always intended to be an investment within the city."
"The real issues can't be resolved today anyway," Yang Wendong said, suddenly smiling. "But at least we have a preliminary understanding. No need to finalize everything right now."
Overseas investments—even in the 21st century—often took months, sometimes even years. There was no rush.
What mattered was that both sides reached consensus on the core principles. Once those were settled, the rest was just about hammering out the details over time.
"Understood, Eric," Sean nodded. "It's been a pleasure meeting you. I'll be waiting in the UK for your team's site visit."
"Good. I'll send someone to London soon," Yang Wendong agreed.
With the initial understanding reached, the next step was field inspection. Since the investment specifics weren't yet determined, neither were the negotiation terms. It was now time for the investor's side to visit and assess the location, scale, and overall feasibility.
After Sean and his party departed, Yang Wendong turned to Wei Zetao and asked, "Has Lin Youtian returned?"
"He has," Wei Zetao replied. "You mentioned it five days ago, so I arranged for him to take the next flight back."
"Great. Bring him in," Yang Wendong said.
"He's already here," Wei Zetao replied.
Soon, Lin Youtian entered the room.
"Have a seat," Yang Wendong said, then turned to Wei Zetao. "Old Wei, bring him up to speed."
"Of course," Wei Zetao said, and recounted the entire conversation and proposal from the British side.
After the explanation, Yang Wendong said, "Old Lin, I didn't have you attend the meeting earlier because I'll need you to head to the UK soon for a detailed investigation. If you had shown your face, the British side might've started preparing for that."
"I understand. What exactly would you like me to investigate?" Lin Youtian asked.
Yang Wendong replied, "Focus on labor unions, worker attitudes—things like that. If we're going to invest in the UK, we need to choose a place where we can produce with peace of mind.
Profitability is secondary. First and foremost, the quality of production must be consistent. If there are issues with worker attitude, we should avoid hiring them altogether."
A factory plagued by poor product quality would tarnish the entire brand. That's why international companies were so cautious about overseas factories.
"Got it," Lin Youtian nodded.
Yang Wendong continued, "Also, take a close look at the UK's retail sector. Since we're investing there, it's only fair that we get something else in return."
The UK domestic market wasn't massive on a global scale, but it was still much larger than Hong Kong or Taiwan. Especially in retail, it was sizable.
Entering the UK retail market wouldn't be easy. But it was worth testing the waters. If handled carefully, even a failure wouldn't be catastrophic—just a learning experience.
"Understood. I'll prioritize retail in my investigation," Lin Youtian said. "Should I consider other sectors too—like real estate?"
"No," Yang Wendong shook his head. "Skip real estate. No need to get involved in that. Just focus on retail."
The UK real estate market might have long-term profit potential, but it couldn't compare to Hong Kong, Taiwan, or Southeast Asia. It wasn't worth getting involved.
Retail wasn't the best sector either—but since the negotiations were underway, it made sense to demand access to something in the UK's internal market. Retail was the most suitable choice.
"Got it," Lin Youtian acknowledged.
Yang Wendong turned to Wei Zetao. "How are things progressing with Formosa Plastics?"
"We still haven't finalized the company's valuation. The third-party firm we hired is still calculating. It'll take some more time," Wei Zetao replied. "But Wang Yongqing has already made a concession—he's offering 6.5%. I'm pushing for 9%. We'll have to wait and see."
"Haha, Wang Yongqing probably just needs a way to step back gradually. He's giving himself room to negotiate," Yang Wendong laughed.
Anyone who reached the top of global business was shrewd. If Yang Wendong weren't a major client, shareholder, and financial backer, he wouldn't even have a seat at the table. If this were Walmart instead of Changxing, it'd be a nonstarter.
Wei Zetao added, "There's more good news—Taiwan's government has approved Formosa Plastics' proposal to build a high-risk chemical plant. They'll allocate land in a low-population area, which makes it easier for us to start plastic production in Hong Kong."
"Excellent. What about our side?" Yang Wendong asked with a smile.
Wei Zetao replied, "The Hong Kong Industrial Department approved the project too. Pure plastic processing isn't too polluting, as long as we manage the import of raw chemical materials properly.
The catch is that the site must be far from residential areas. The government is offering us land in the northern part of Tsing Yi Island, and we'll have to reclaim some land for a small pier for transportation."
"Good. Let's proceed," Yang Wendong said, nodding. "Send all documentation to the headquarters office for review. Once they approve it, I'll sign off."
For highly technical matters—like exact investment figures or engineering requirements—Yang Wendong didn't get involved directly. It would be exhausting to learn it all. He only got hands-on with ultra-large projects, like the purchase of supertankers.
For standard investments, Yang Wendong would first approve the idea in principle. Then HQ's finance, risk, and technical teams would review it. Sometimes, a third-party agency would assist. Only when everything was cleared would the plan reach his desk for final signature.
This was the standard structure for a large enterprise. Once a company reached Changxing's size, even a million-dollar investment might only get a glance from the CEO. It would be recorded in the annual report, and only warrant further scrutiny if problems arose.
"Understood," Wei Zetao replied enthusiastically.
Once they began producing plastic pellets in Hong Kong, Changxing Industrial's costs would drop significantly—enhancing its international competitiveness. A fully integrated supply chain was the key to long-term stability, and it remained one of the group's core goals.
By March 25, Wei Zetao had submitted the full plan for the Tsing Yi factory. The HQ review team had started vetting the documents.
Meanwhile, Lin Youtian and several Changxing executives had flown to London under the radar to conduct a thorough investigation of the local investment environment. Only after confirming the conditions on the ground would they proceed with negotiations.
If it proved to be a good opportunity, great. If not, they'd extract as many benefits as possible during talks.
These things wouldn't yield results overnight. Yang Wendong wasn't in a rush—Changxing's current growth allowed most investments to proceed steadily.
But there were exceptions—like the urgent purchase of supertankers and cargo ships. With the Middle East crisis ongoing for more than three years now, the more ships they secured during this period, the greater their future returns.
March 29
Yang Wendong boarded a private plane and flew to Tokyo, Japan, heading straight to the headquarters of Mitsui Shipbuilding Company.
Mitsui Shipping Group's Deputy Director Ichiro Takizawa, who had overseen their last major collaboration, once again took charge of handling Changxing Group's procurement. He personally led a team to welcome Yang Wendong at the company entrance.
When Yang Wendong and his team arrived at the headquarters of Mitsui Shipbuilding Company in Tokyo, the entire reception group bowed deeply and said in unison, "Welcome once again, Mr. Yang, to Mitsui Shipbuilding."
"You're all too kind," Yang Wendong said with a pleasant smile. "Mr. Takizawa, good to see you."
"Welcome, Mr. Yang," replied Takizawa Ichiro, smiling as he shook hands with everyone. "Please, come inside."
Under Takizawa Ichiro's lead, the group headed to the top floor of the Mitsui Shipbuilding headquarters. From here, they could enjoy a sweeping panoramic view of Tokyo.
"Mr. Yang, how do you find the view of Tokyo?" Takizawa asked in fluent English before the meeting began.
"Not bad," Yang Wendong replied with a smile.
"If you're interested," Takizawa continued, "we'd be happy to gift you a top-tier apartment in the heart of Ginza. The view from there is quite similar to what you see here."
"No need. I'm fine with hotels when I visit Tokyo," Yang Wendong responded calmly.
He knew very well—accepting a gift always came with strings attached. There's no such thing as a free lunch. That principle never changes.
Besides, a single Ginza apartment was nothing to him. If he really wanted one, he could buy it himself without breaking a sweat. Japan's real estate market hadn't taken off yet. While prices were higher than in Hong Kong, they were still within reach. If he ever wanted to invest here, that would be a matter for the future.
"Fair enough. Japan does have many excellent hotels," Takizawa said with a laugh, not at all surprised by the refusal. "Shall we begin the meeting, then?"
"Let's," Yang Wendong nodded.
The meeting began promptly. Just like last time, Mitsui Shipbuilding first gave a presentation on their recent developments, followed by a review of previously built vessel models.
This time, the ships being purchased by Changxing Shipping were similar to the last order—designed for operational efficiency. So there wasn't much to haggle over in terms of design. They moved quickly into the pricing phase.
"This price is around 10% higher than last year's?" Yang Wendong asked, face unchanged as he studied the quote.
Takizawa smiled and replied, "Mr. Yang, the increase reflects global demand and the rise in raw material costs. You can confirm this with Ms. Zheng or consult other shipbuilders."
Yang Wendong glanced at Zheng Yuhua, who nodded in confirmation. He then said, "If it's due to global conditions, then I won't contest it. However, I do hope we can improve the financial terms compared to our last cooperation."
Throughout the 1960s, ship prices had been steadily rising. Shipyards weren't fools—they saw how much profit shipowners were raking in. Naturally, demand drove up prices. After the outbreak of the Middle East crisis, ship prices had soared even more. Buying a tanker today and operating it for just a few years could yield a full return on investment. Later, when the crisis peaked, used tankers were resold for two to three times their original cost.
It was a mad era, and also the best time to amass wealth. Even those without Yang Wendong's knowledge of future events were scrambling to invest in ships. That rush alone was enough to inflate prices.
"Financial terms?" Takizawa repeated, then said, "Mr. Yang, our previous deal already involved Mitsui Bank providing 65% financing. That's quite a generous figure."
"That was generous then, but by today's standards, it's pretty average," Yang Wendong replied with a smile. "The fact that ship prices are rising is because the shipping industry is booming. That means the risk is lower. So Japanese banks should be able to offer even higher loan-to-value ratios."
Deals of this size, when there's a clear path to profitability, should leverage as much bank funding as possible. The higher the financing ratio, the lower the investor's own capital input. A few extra percentage points from the bank could save the investor tens of millions. With a bit more leverage, you could buy even more ships—or real estate, or whatever asset made sense.
Takizawa chuckled. "Mr. Yang, your analysis is spot on. But I can't make that decision immediately. We need to review this as part of our broader partnership strategy."
"Of course. I'm just stating my expectations," Yang Wendong nodded. "But if your bank can meet my terms, I'm willing to place an additional order—one or two smaller cargo ships."
"What kind of ships?" Takizawa asked.
"Container ships," Yang Wendong replied with a smile. "They're the future of maritime logistics."
By the mid-1960s, containerization was becoming more widespread. Some of Changxing Shipping's clients had already started inquiring about leasing container ships. This was a clear opportunity.
"Then let's continue discussions on that front," Takizawa said, his eyes lighting up.
The negotiation process was smoother than last time. After several deals, both parties had built up enough familiarity to streamline discussions.
By the afternoon, a preliminary agreement was reached:
2 crude oil tankers with a deadweight of 125,000 tons each3 oil tankers of 56,000 tons2 container ships
Total deadweight: 462,000 tons
The next steps were to finalize unit prices, bank financing terms, interest rates, delivery schedules, and so on.
One week later, the final agreement was signed:
Total contract value: USD $46.8 millionFinancing: 68% provided by Japanese banks
Once the news broke, Japanese media quickly picked it up. In Hong Kong, Kong Wah Daily and Oriental Daily got wind of the deal first and reported it with headlines like:
"Post-it Note King Buys Giant Ships Again: Hong Kong's Chinese Ship King About to Change!"
This signaled to the local business world that Yang Wendong was no longer just an industrialist or innovator—he was now stepping into the realm of international shipping dominance. The old Chinese shipowners, many of whom had relied on the British shipping structure or inherited routes, were about to be dethroned.
Yang Wendong's rise was a blend of bold vision, industrial mastery, and strategic global planning.
And he was just getting started.
Thank you for the support, friends. If you want to read more chapters in advance, go to my Patreon.
Read 40 Chapters In Advance: patreon.com/johanssen10