reborn industrial empire

Chapter 627 Laying out the future market

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Fatty Liu talked about ethanol gasoline with Jin Xiaoqiang again, and Jin Xiaoqiang suddenly remembered the craze of ethanol gasoline in China in recent years.

It is true that ethanol gasoline is currently used more widely than methanol gasoline internationally. Currently, methanol gasoline is widely used in the United States and Japan.

These two countries are also using ethanol gasoline, but the amount of ethanol gasoline used is indeed not as large as that of methanol gasoline. After all, although ethanol gasoline comes from purely natural and renewable plants, it still has people competing for food.

problem, so the disputes within these two countries have always been relatively large.

The countries that currently use the most ethanol gasoline in the world are of course Brazil and Thailand. Both countries are located in tropical areas and are rich in natural resources.

And because of their natural geographical environment, both are big sugar cane-producing countries. The price and cost of refining ethanol gasoline is very low for them, so ethanol gasoline has become widely popular in these two countries.

However, in some high latitude countries where the agricultural environment is not very good, methanol gasoline still has better prospects.

Although ethanol gasoline has the advantage of being renewable, it consumes food and has shelf life issues, which are the biggest disadvantages of this new hybrid fuel.

Methanol gasoline is very different. The biggest disadvantage of methanol gasoline is that methanol is toxic and highly corrosive. However, if the mixing ratio is good and the sealing and untouched work is done well, these shortcomings can still be overcome.

Moreover, the main source of methanol is some low-quality coal. Even if these coals are used to burn stoves for heating, they will not have high heat, and they will also face the risk of collapsing the stove.

But if it is used to refine methanol, it is the safest and most effective way to utilize waste. There are too many such inferior products every day in the central and western regions of China.

It is definitely an energy-saving and environmentally friendly waste utilization model, and methanol can also come from the coke oven exhaust gas of many steel smelting companies. If such exhaust gas is discharged into the atmosphere, it will only cause serious air pollution. If it is used to refine methanol, then

It's perfect for recycling.

Moreover, although methanol is widely used in industry due to its large output, the country still has a lot of surplus output every year, so the market price is much lower than that of petroleum and other fuels.

Therefore, if it is used to make methanol gasoline, it will undoubtedly greatly reduce the cost of fuel, and there will be no shelf life issues like ethanol gasoline.

Therefore, in the United States and Japan, methanol gasoline and methanol diesel have become the standard fuel for many long-distance buses or long-distance transportation companies, and the price is much lower than ordinary gasoline and diesel.

However, the current domestic petroleum and petrochemical systems have not yet focused on the advantages of methanol gasoline. After all, the concept of ethanol gasoline has been the most hyped internationally in the past two years.

In order to catch up with the international trend, China is planning to build many ethanol gasoline plants. In Dongshan Province and Qingyuan Province, two major agricultural provinces, Tianchao Petroleum and Tianchao Petrochemical are carrying out construction projects and building ethanol gasoline refining and chemical plants.

As for the comparison of the advantages and disadvantages of ethanol gasoline and methanol gasoline, it was Jin Xiaoqiang who instilled it in Liu Kang, and then asked him to tell it to his two elders who were senior officials in Tianchao Petroleum and Tianchao Petrochemical.

Because Jin Xiaoqiang knows that within such a giant monopoly, disputes will continue. If someone advocates ethanol gasoline, then there will definitely be opposition. But if you object, then you must come up with suitable alternatives.

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The success of that substitute means that the person who proposed the successful product promotion will rise to great heights in the future, so Jin Xiaoqiang believes that Liu Kang's two elders will make their own judgment.

And the reason why he did this was, firstly, to sell Liu Kang's two elders a benefit, and secondly, he hoped that they would provide him with corresponding support after receiving the benefit!

The domestic economy has developed rapidly in the past few years. Whenever the peak production periods of various types of factories across the country are reached, such as June or July, the domestic gasoline and diesel supply will face a tight situation.

Many economically developed areas in the south will face power rationing to control the shortage of power supply, and provinces such as Jiangsu, Zhejiang, and eastern Guangdong have experienced oil shortages more than once.

Therefore, in the past two years, the country is trying every means to change the current tight supply of gasoline and diesel fuel in the country, and the first way to think of is undoubtedly to learn from Brazil and Thailand to use ethanol gasoline to expand domestic supply.

But the reason why Brazil and Thailand are able to refine ethanol in large quantities and produce ethanol gasoline is because many of their countries are located in tropical areas and are rich in tropical plants such as sugar cane. Among all cash crops, sugar cane is undoubtedly the most important source of ethanol.

The cash crop with the highest extraction rate.

However, in our country, we do not have such conditions, so we can only settle for the next best thing and choose another cash crop with a relatively high ethanol extraction rate.

This cash crop is corn. In the north, especially the three northeastern provinces and Dongshan Province, these provinces are major corn-growing provinces.

However, with the improvement of people's living standards, corn is no longer the main food for the people. The main use of this crop is to make various feeds, among which pig feed is the most widely used.

However, with the stabilization of domestic pork prices in China in recent years, the price of pig feed is not high, so the annual purchase price of corn in the northern region is not high.

Therefore, Tianchao Petroleum and Petrochemicals have focused on corn. In the two economically developed provinces in the north, they are building ethanol gasoline refining and processing plants. They plan to raise the price every year to purchase corn from farmers and use it to extract ethanol.

Ethanol gasoline.

With the accelerated pace of construction in recent years, many factories have been completed, and ethanol gasoline has begun to be sold at some Tianchao Petroleum and Tianchao Petrochemical gas stations in Qingyuan Province and Dongshan Province.

But Jin Xiaoqiang, as a person who has experienced this, knows that the consequences of this will be that China will usher in the largest inflation in two years, and the main culprit of this inflation is the rise in pork prices.

Because corn is sold away by petroleum and petrochemicals, and the price rises, many pig feed production and processing companies cannot buy corn, which eventually leads to a slight increase in pig feed. People are no longer willing to raise pigs because of the rising pig feed.

This will lead to insufficient supply in the pork market. Coupled with the speculation of some people, the market price of pork in China will gradually increase from the middle of next year. It was not until the beginning of 2008 that this trend eased for the first time.

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It was the pork crisis that caused public dissatisfaction that made the country's top leaders realize the harm of ethanol gasoline to the domestic economy. As a result, many ethanol gasoline refining plants that were still under construction were stopped, and many of them had already been built.

Those that are completed will also face the fate of gradually reducing production or even closing down.

At the same time, the rising international crude oil prices continued to inject water into China's economic growth. This also led to domestic prices remaining high a few years later, but the exchange rate of the domestic currency to the US dollar also remained high.

The situation of high inflation remains high.

As the boss of an automobile company, Jin Xiaoqiang does not need to care about such national events. However, as a qualified business leader, you must have a very keen political sense and benefit from political trends and adjustments.

Enterprises seek maximum profits.

It was because of his two lifetimes of experience that Jin Xiaoqiang thought of starting to quietly promote the concept of methanol gasoline when ethanol gasoline was about to take off in China.

In the future, the development of the domestic automobile industry will mainly be reflected in low-end models of compact cars. Especially after the financial crisis in 2008, competition in the domestic compact car market will become particularly fierce.

Especially after the country launched a series of inductive policies, even German, Japanese and American brands that had always looked down on this market turned around and launched new cars to enter this market to compete for food.

Therefore, Huayang Dynamics does not pay attention to this market now, which does not mean that it will not pay attention to this market in the future. In Jin Xiaoqiang's future market division concept.

Hybrid vehicles will definitely become the mainstream of the mid- to high-end automobile market. Although it will take a long time, the general trend is inevitable.

However, the price of hybrid vehicles when they are first launched will definitely not be very cheap. After all, the oil trusts cannot be forced to panic, so many low-end consumers will not be covered.

So how does this mid- to low-end market compete with those international giants and joint ventures?

In the mid-to-low-end compact car market, in order to control costs, everyone is definitely half-matched in terms of power, appearance and internal layout design of the models. Even though Jin Xiaoqiang has a golden finger, he cannot guarantee Huayang Power.

It will cause strong suppression of other companies.

Therefore, in Jin Xiaoqiang's view, we must find another way to make a fuss about the price of fuel, because Jin Xiaoqiang knows that Chinese consumers have always been very price sensitive.

Especially for those consumers whose family funds are only enough to buy a low-end compact family car, if they can buy a model that can be used at a very low cost in the later period, they will definitely buy such a model without hesitation.

If we can capture these consumers, Huayang Power will have an advantage in the fierce low-end car price war that is coming in the future.

And not only can they make money from buying cars, but also from the supply of methanol gasoline, Huayang Power can also make money if they take a shareholding.

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