Rebirth of the 1980s: The Military Industry Empire

The company achieved a surprising consensus internally, which made Kenneth very curious. But he soon understood that if the company wanted to develop and grow, it needed products. Whether they were produced domestically or in the East, as long as they were produced, they could make money.

Moreover, the Easterners didn't need them to invest; they only needed to provide the technology. The venture was even a joint venture, and even if they each held half of the shares, they could still make a lot of money.

However, this matter couldn't be decided solely by the company's agreement; it also needed approval from government departments.

After reaching internal consensus, Kenneth hurriedly went to the relevant departments.

"Madam, our Rolls-Royce company wants to establish a joint venture with the East to produce our most advanced RB211 engine in the East…"

"Okay."

Madam agreed directly! Kenneth was incredibly surprised: "But this is our most advanced engine."

"The purpose of the joint venture is to produce aero engines on Eastern soil and reduce costs. This is also beneficial to us; it's a win-win situation."

"But it's the most advanced," Kenneth repeated, unsure if Madam had understood him.

"Moreover, you just said that as long as we control the production of the blanks, the Easterners won't be able to do anything without us. In recent years, they haven't even mastered the technology of the Spey engine, so how can they master our most advanced technology? Setting up a factory there is harmless. When the time comes, the profits will still be ours."

"Yes."

Thus, everything was resolved!

Walking out of the room, Kenneth took a deep breath. He knew that a new era for Rolls-Royce was about to begin!

For a company to develop and grow, it cannot be stingy with its technology. Over the years, they have sold many technologies, and even the East has introduced Spey technology. Therefore, this is not the first cooperation, and it is still a joint venture, not an export of technology. In the 1980s, when cooperation between the two sides was at its most harmonious, nothing was impossible.

Economically and politically, there are various benefits. It is completely a win-win cooperation.

The next day, the Rolls-Royce company conference room.

"President Qin, you inspected our production line yesterday and should be very confident in our advanced production technology, right? After careful consideration, we have decided to accept your suggestion and establish an RB211 engine production line in the East," Kenneth said. "We estimate that the initial investment will require 200 million pounds."

This is a high expense, and Rolls-Royce will not pay a penny. According to the agreement, they only provide technology.

"Of course, no problem. After we return, we will raise funds and introduce relevant equipment. As for the production plant, it can still be set up in Tianjin, together with our automobile factory. There is die forging equipment there. If I am not mistaken, some engine blanks also need to be forged by this die forging equipment."

"Okay. According to your requirements, we will ensure that the initial production model will not exceed 300,000 pounds, after all, the price will increase with inflation in the later stage. At the same time, you also need to ensure that the order will exceed 1,000 units."

"Of course, there is no problem. These can all be written into our contract," Qin Yang said. "As for the shares held by both parties, we will suffer a bit and take 51%, and you take 49%, how about that?"

Kenneth was stunned: "No, no, you have more shares, how can you suffer?"

"According to the plan, we have to invest 200 million pounds to buy equipment, and we have to spend hundreds of millions of yuan to build factory buildings and equipment, hire labor, etc., while you only need to send some technical personnel to supervise the production of the engine. The manufactured engines don't have to worry about users, we will order them. Even if we occupy 80% of the shares, it should be. Now we only occupy 51%, isn't this a loss?"

"We want to occupy 51%, and you occupy 49%. We must have the say in this joint venture," Kenneth said.

"Sorry, that won't work."

"Why?"

"Because we in the East have regulations that if we form a joint venture, the shares held by us in the East must reach 51%. Without this shareholding, this joint venture will not be approved."

A group of British people were stunned. How do you have such regulations?

"Everyone knows that our previous model was to buy technology and have absolute ownership. Now, we are forming a joint venture. The technology is still yours. We are equivalent to paying money and effort, and finally getting the product. The leaders above are not satisfied with this model. If we can't have a shareholding advantage, then this enterprise cannot be approved. You also have to consider the feelings of the leaders above."

"Besides, the shares are only for dividends. You don't have to pay money, you can invest with technology, and you can still get 49% of the profits, which is already very good. In the initial production of the factory, we will definitely assemble first, then produce parts, and finally completely produce ourselves. In this process, we will also purchase a large number of parts from you. These are your profits. You earn more than 49%, maybe even 70% or 80%."

"As for who has the final say, you are the ones who master the technology. Who do you think has the final say? This shareholding is just a matter of face. You understand that our leaders in the East care about face," Qin Yang continued to fool. "The leaders above are also very happy and promised to help coordinate everything, and also named our joint venture Tianjiao Aviation, the most proud aviation company in the world, the best in the world."