This Is How I Became a Chaebol - This Is How I Became a Chaebol chapter 92

092 : Overwhelming competitiveness

“You want to invest in resources? It’s not something you can do lightly.”

“That means I’m going to accept a request from the Silverstein family.”

“Oh, you look at making money too easily. There are many shipping companies besides Daesae Shipping that make offers to Silverstein in that way.”

“okay? Then choose that one.”

I ting on Nancy’s champagne glass! They clinked their glasses to make a noise and walked towards the back of the party.

“No, there is no law to do this!”

Nancy quickly closed the veranda door to prevent me from returning to the party.

“Where is the law to do this? You said you wouldn’t ask Daesae Shipping?”

“Oh, this champagne is quite drunk. How far have we been talking?”

Nancy didn’t change a single color on her face and acted different.

Also, a great lobbyist.

“I even said that this kind of business is difficult. You have to hide the information that raw material prices will skyrocket sooner or later, and you have to know it, but you have to be faithful to buy, transport, and store resources, and not even know about it from your astute competitors.”

Resource speculation ahead of war is an extreme information warfare.

If someone gets that information, it’s a business that just buys resources at a cheap price and accumulates them.

The problem is that getting caught doesn’t just ruin the business. It is bound to receive enormous criticism and various sanctions for using the war to accumulate wealth.

“Are you saying that the mainstream shipping can do all that well?”

“Sure, how many people are paying attention to mainstream shipping? It will not even be included in the calculation of the volume of goods transported.”

In the 1960s, there was no computer network, so how easy was it to count the volume of goods transported? If Daesae Shipping is in charge, it will be difficult to know the route of resource movement.

“A shipping company that has joined the Pacific Freight Alliance is evading the calculation of the volume of goods transported? It is nonsense.”

“We give up freight for resources commissioned by Silverstein. So, will that resource be excluded from the tally? Instead, you only need to pay 15% of the stock as well as storage fees.”

“You mean 15% stake and free shipping and storage fees? tell me more I want to jump over it.”

Nancy, half-jokingly, pressed for more.

“Isn’t our country planning to build a petrochemical complex and integrated steelworks? If you want, we can process it in the name of Silverstein. Wouldn’t it be much more profitable to refine crude oil into gasoline or process iron ore into steel plates?”

“Oh my, this is so good. From transportation to storage to processing! You are the best partner.”

“Of course, processing is not free. The crude oil depot must also be built at your expense. You can’t put it in a yard like iron ore.”

“Okay, okay, no problem at all.”

Nancy smiled heartily as if the calculations were finished in her head and said okay.

It seems that he decided that it was definitely a business that remained.

Her calculations would only include Israel’s surprise attack on the neighboring Middle East and the closure of the Suez Canal due to rising tensions on the Middle East side.

But, I know

That’s followed by an even bigger opportunity: an oil shock.

When Nancy robs resources, I also rob them to raise a lump sum, and when the price drops to the normal price, I can collect resources again in large quantities from the same customer and prepare for an oil shock.

The key is to find out who the Silverstein family is dealing with. Even if it’s free fare, it’s a business that leaves a lot to be desired considering the storage construction and other customer information in addition to the 15% stake.

“like. Iron ore goes to Australia and crude oil goes to Saudi Arabia. I’ll pay for it, so go to the designated place and pick it up and take it with you.”

“I do. Please send the data by telex.”

In particular, breaking through large-scale iron ore trading partners through the Silverstein family is a very large income.

Crude oil, it’s hard for me to get a bonus, but iron ore isn’t even a bonus.

The iron ore that Silverstein would buy would be a high-quality, high-purity iron ore called hematite, so I could buy low-grade limonite at an almost free price while making the deal.

Prior to the 21st century, limonite was more expensive than molten iron, so it was like a pit.

If Samboki signs a contract with Böst, he can extract high-quality molten iron from limonite at a low cost using a new method.

If you can make something useful out of resources that someone else throws away, it’s going to be a great business.

“Then, shall we enjoy the party now?”

“Yes, Lady.”

Nancy held out her arm for me, and I politely escorted her into the party.

Meeting the mood of customers is the basis of business.

‘The discussion with the West German ambassador went well.’

When I came out to the party, Director Seok Ki-hoon delivered a whisper with an excited face, and Assistant Secretary Yeom Won-cheol was also working hard as a face madam.

Nancy and I moved lightly to the chamber music.

Even Nancy had her nose cut, so there was no possibility that the integrated steelworks project would collapse.

***

Two days later, Gimpo Airport.

“Thank you for your hard work, Chairman.”

“You worked hard, Mr. Woo.”

“Thanks to both of you. The first report was made to the Blue House via telex, and I will personally report to the President tomorrow, so please rest in peace.”

“Yes. All right.”

We successfully completed an investment contract in Pittsburgh and returned home.

There were no particularly welcoming crowds, but the feeling of pride was no less than that of attracting investment from the petrochemical complex.

Moreover, since the site for the industrial complex had not yet been finalized, there was no issue with the land price.

It would be better to buy the land in Pohang at the right price before the land price goes up.

“Chansu! It’s here! here.”

“Eh, did you come to meet me?”

Sambok suddenly popped out of nowhere.

“Isn’t the sending of the telex a request to meet you? It’s the boss’s order, so we have to come quickly.”

“What? My body seems to have improved a bit. Did you eat a lot of meat in Europe?”

“It’s because I eat a lot of milk instead of meat. haha.”

Sambok seemed to be in a good mood and giggled as he poked me in the stomach. It was clear that he had something to brag about.

“What? brag about it I’ll listen to you.”

“Heh, don’t be surprised. I brought the blueprints.”

“blueprint?”

“Blueprint of Integrated Steelworks.”

“What do you mean?”

I wanted to hear something.

Super-large plants, such as integrated steelworks, are not simply at the level of building buildings.

When constructing a large plant, various blueprints are created and managed as large charts, and there are so many necessary blueprints that the 40-pyeong office is filled.

Even if you decorate it as a book, hundreds of pages are just skipped.

“Didn’t you tell me to conclude a comprehensive technical agreement with Böst? But could this body be satisfied with that much? So I put some effort into it! I brought the blueprint of the integrated steelworks that Böst reviewed for three generations.”

“What… what, oh no… is that true?”

I was so surprised that I stuttered.

After signing a contract with Böst for the fluidized furnace technology, they brought the blueprint for the integrated steelworks?

I don’t know whether to believe it or not, but if it’s true, it’s really, really great.

“Greetings, Mr. Wöst. This is the CEO of Incheon Steel.”

“Nice to meet you. I am Johann Wöst.”

“welcome. This is CS Woo.”

A reliable alpine climber asked me to shake hands.

I held a hand the size of a pot lid, and I could feel the passion in the tight grip.

“SB said that in Korea, the dream of the Wöst family can come true. please help I’ll do my best.”

It was thrilling.

I never thought I would actually meet President Johann Wöst. I couldn’t believe what was happening in front of my eyes.

Isn’t it the chairman of Wöst, which appeared like a comet in the 1980s and is reborn as a legendary steel engineering company entering the 21st century?

I had only heard the name, but this was the first time I had actually seen it.

He was an aristocrat who was extremely reluctant to be exposed to the media.

“Welcome. I will be your colleague.”

“You seem to be saying the same thing as SB.”

“Let’s get rich together is the motto of our company. You will hear it a lot in the future.”

“I look forward to it. SB says there is a steel mill that needs fixing right now. Can you show me?”

As soon as Voest met me, we started talking about work.

‘what? Didn’t I show you Incheon Steel?’

‘How dare you show me the factory, even though there is no president?’

‘Oh, you’re loyal!’

Daesae employees say that the work is broken.

“Let’s go.”

I’d like to see the blueprints first, but yes I’d better show you my cards first.

What would you hide from someone who flew all the way to Korea?

“Are you home, boss?”

When I left the arrivals hall, secretary Ki was waiting and opened the car door.

“Secretary Ki, please go to Incheon Steelworks right away.”

“Yes, boss.”

It’s a forced march as soon as I return, but everyone works like me.

Above all, I couldn’t postpone the expectation that I could discuss the steel plant with Boost.

“How did you decide to come to Korea?”

“It seemed that if SB continued, there would be nothing left to eat at home. haha.”

“Austrian food is really good. You should try it too. There’s goulash and something similar to kimchi stew…”

The story of the two on the way amused me.

I felt that I had returned home.

***

Incheon Steel.

“This is really embarrassing. It’s a flat road…”

Böst sighed when he saw the flat road of Incheon Steelworks.

A flat furnace is a flat vessel-shaped furnace that heats one side to extract molten iron.

Unlike blast furnaces that produce molten metal by mixing iron ore and coke because of their extremely low thermal efficiency, they can only be used for melting scrap metal at best.

Even the flat furnace of Incheon Steel was small, weighing only 70 tons.

“Just think there is no Lo. It is much better to have no furnace at all than to have it clumsily.”

“is that so?”

I also had no intention of using the flat road as the main one.

Temporarily melting scrap metal and using it to make rolled steel, he was determined to switch to an electric furnace.

I said that to the president, but now I have changed my mind. The pioneer of the fluidized furnace came directly in front of me, but there is no reason for me to set up an electric furnace.

You just need to create a 21st century fluidized furnace from scratch.

You can use the Pyrex method, which is the pinnacle of steelmaking technology that Pohang Iron and Steel is so proud of.

War scraps brought from Vietnam can be melted down in flat furnaces and used for operating expenses, or accumulated in stock and sold during an oil shock.

“On the other hand, Incheon Steel has excellent rolling facilities. If we add a small idea here, we can reduce the cost of hot-rolled steel by 50%.”

“Ugh! 50% cost reduction?”

“Director Lee, do you have a patent you bought from SMS in Germany?”

“Yes, here it is. The thin plate casting method!”

I knew that Sambok would buy it properly.

I showed Voest the patent documents I received from Sambok.

“It’s a patent that makes hot-rolled steel sheets by flowing molten iron between rollers cooled with water. This is a technique that came into vogue for a while in the 1940s and then died out. Either the roller will break or the steel plate will just break. There is no mass production.”

“you’re right. That’s why SMS sold us the original patent. However, I know the solution.”

“The solution? If iron is cooled rapidly, it will crack. It is a natural phenomenon that cannot be solved.”

“When I poured molten iron from above and pushed it with a roller, the machine or the steel plate broke. Just pour it slowly from the side, little by little.”

“… what… no… that… huh…!!!”

Sounds like an easy solution, isn’t it?

In fact, in the early 1970s, SMS Inc. added this simple idea to bring a dead patent back to life.

It was an idea discovered in an attempt to save even a little bit of processing cost at each steel mill due to an oil shock.

“Director Lee, didn’t you also purchase the by-product gas reprocessing patent from Otto?”

“Here it is. president.”

“I think Mr. Wöst will understand this technique right away, even if he sees it?”

“… Ugh! Was there a patent like this?”

It was only natural that Voest was surprised.

It was a technology to increase reduction efficiency by recycling carbon monoxide and hydrogen generated in the blast furnace.

It is a perfect match with Böst’s flow furnace technology.

It was a skill in which university classmates who joined Pohang Iron and Steel Co., Ltd. dipped kimchi soup with chopsticks and drew conceptual maps while telling stories of heroism.

I didn’t know that what I heard so much that it was engraved in my head would be so helpful.

“Recycling the off-gas improves the reduction efficiency by 25%. It also cuts costs by about 10%.”

“… that’s amazing.”

“What would happen if Mr. Wöst’s fluidized furnace technology was applied there? Fluidized furnace technology is a direct reduction method, so it seems to match very well with the thin plate casting method and by-product gas recycling technology.”

“You mean this? It feels as if my family’s flow furnace technology has waited for this technology to meet.”

“Wow! How much does replacement cost go down? I said that the fluidized furnace technology is also a technology that does not require pretreatment. Could it be that we are pulling iron for less than half the price?”

“Right, if you combine these methods to create a steel mill, you will have an overwhelming competitive edge. The world’s No. 1 steel mill is a must.”

As my words continued, Voest’s eyes changed.

Because vague ideas are materialized in real time.

“Here… can I try that?”

“Absolutely. There are no restrictions for Mr. Wöst. Aren’t we already friends?”

“ha…”

“Kyaha, Chansu… No, my boss speaks well.”

Sambok also dies in a good mood.

It is said that half-price production is possible, but if you run only the steel mill, isn’t it like a merchant swimming on the ground?

Ding Ding Ding Ding

“Gather everyone. Everyone at Incheon Steel!”

I took an iron stick and pounded it all over the factory. Since it was a steel mill, even a slight knock made a bell sound.

“Wow! Boss Wu rang the bell! I finally hit the bell!”

“The bell rangaaa!!”

From the time I entered the factory, the employees seemed to have been keeping an eye on me, and they flocked to me like a cloud.

Everyone must have heard rumors that I struck the golden bell in Busan.

“Wow! Boss, what can I do first?”

“You are the CEO of Incheon Steel, right? Wow!”

“We lived. I live.”

The staff assured me that I had taken over the place.

In the meantime, President Dong-Jun Dong-jun took off his clothes and the upper heads were fired one after another, so he must have been anxious.

“you’re right. Since you have become our staff, shall we all shout together? We will be rich!”

“We will be rich! Wow!”

“I became a major employee!”

People brought iron plates from somewhere, beat them like gongs, and danced.

“how about it? The people to work with, fighting is good, right?”

“It really is.”

“Mr. Wöst, I would like to ask you one thing.”

“do it.”

“Please drag them up high before they realize we exist. I assure you, if you teach them, they will grow as you teach them.”

“Yes. Please leave it to me.”

Voest nodded heartily.

The fact that the world does not know of our existence is our core competitiveness.

Before realizing our existence, I must rise as high as possible.

Leading the general staff, that is.