A big country of aerospace with black technology

At present, the main companies that produce carbon fiber in the world are Longteng Group in China, and Toray, Mitsubishi, Hexcel, Cytec, H.G, etc. abroad.

In 2002, global carbon fiber production was 2.58 tons.

Among them, Longteng Group produced more than 14,000 tons of carbon fiber, accounting for 54% of global production!

Annual revenue exceeds $4 billion!

The total carbon fiber industry was less than $7 billion last year.

The revenue of Longteng Group alone exceeds 60% of the total volume!

This is mainly because the carbon fiber produced by Longteng Group is mainly used in aerospace, high-end industry, military industry and other fields.

The unit price is relatively expensive, about US$220,000 per ton.

In fact, the current ex-factory price of carbon fiber from Longteng Group is lower than the price announced to the outside world.

For example, when shipping to Snecma, the price per ton is around US$200,000.

Only they can get such a price.

Because every time they get goods, they are thousands of tons!

The trade volume at one time is hundreds of millions of dollars!

"President, our old customers in Texas have decided not to use our materials."

The female secretary with a curvy front and back walked into a luxurious office in a panic.

H.G Company, in the past few years, its annual income has been getting lower and lower, and it has incurred huge losses every year!

Last year's revenue was even more severe compared to the year before last, with revenue down by 30%!

Compared to their peak seven years ago, this is a drop of more than 70%.

The original H.G Group is also considered a giant in the materials industry around the world.

However, these years of continuous losses have put this company on the verge of bankruptcy!

"What's the reaction from the shareholders?" Little Willy ignored the bad news brought by the secretary and asked with an unkind expression.

Instead, they asked shareholders directly for their reactions.

Compared to the loss of customers, Little Willie cares more about the reaction of his shareholders.

The attitude of shareholders determines whether he can continue to sit in the position of president.

"The shareholders didn't react much. They just ask you to maintain supply to the military."

The secretary also showed her professionalism at this time and calmed down.

H.G Group has inextricable ties with the Federation, and the military is their important customer.

Now the losses are almost all business customers.

But as long as the military can maintain stability, there won't be much of a problem.

“Customers in Texas, what they’re saying.”

After getting the secretary's assurance, little Willie came back to his senses and said.

Customers in Texas are not considered major customers among the group's customers.

Only tens of tons of carbon fiber are used every year, and the value does not exceed tens of millions of dollars.

However, this sends an important signal.

That is, even the Texas industry, which has deep cooperation with the federal military, has given up using their materials.

Their carbon fiber industry basically has no customers other than supplying it to the military!

"They chose Snecma's carbon fiber products," the secretary said with some embarrassment.

“The price of Snecma’s finished carbon fiber products is even lower than the price of our raw materials.”

“It’s really hard for them to give up such a price advantage!”

Snecma's carbon fiber raw materials are basically purchased from Longteng Group, and its price advantage is obvious compared to H.G Group.

After launching aerospace manufacturing cooperation with Longteng Group, the cost of finished products has further dropped.

It’s already cheaper than H.G Group’s raw materials!

"Does Hexcel and Cytec have any response to our proposal?"

The secretary's answer made little Willy feel dazed for a moment.

He has understood that if they rely solely on product quality and product price, they have no way to defeat the combined Longteng Group and Snecma.

Therefore, not long ago, he contacted the two largest carbon fiber manufacturers in the country.

Want to solve this problem in other ways.

"They still have certain concerns about this approach."

The secretary spoke out about the hesitations of the two companies.

Both Hexcel and Cytec are different from H.G. Their carbon fiber business is only a part of their own business.

Even if it's a loss, it's not a big deal.

"Do they have to wait until someone comes to our door to resist?"

Little Willy slapped the table angrily and roared.

In fact, Little Willy's proposal is a good thing for them.

But those two companies, unlike H.G Group, are basically competing with Longguo.

They also have a lot of cooperation with the Dragon Kingdom, so they are naturally more cautious about this.

"President, if we are the only family, do we still want to initiate a lawsuit?"

Little Willie’s method is actually very simple, but also very practical.

That is, to file an anti-dumping lawsuit domestically against materials and finished products from Snecma and Longteng Group.

Because, in the past few years, materials and finished products from these two companies have poured into all parts of the world.

Especially countries with developed high-end industries import more!

To a certain extent, this is indeed a dumping.

However, such high value-added and high-tech products are generally not included in the dumping list.

"They don't want to offend anyone, so we'll do it ourselves!" Little Willy said with a distorted face.

A week later, Yingjiang launched an anti-dumping investigation against Yu Longteng Group’s carbon fiber raw materials and finished products.

Once the investigation is established, Longteng Group will not only face losing a larger market.

There are also billions of dollars in fines!

In this regard, Long Teng will naturally not admit such a crime!

So a huge team was hired and the protracted litigation process began.

Such anti-dumping litigation cannot be concluded in a few months.

The entire process may take several years or even more than ten years.

During this process, it will be difficult for Longteng Group’s products to enter the country.

This is also the plan that little Willy came up with.

Through litigation, we will delay Longteng Group's entry into Yingjiang's country.

With a long time gap, whether it is to seize the time to develop new products or improve the production line, thereby reducing the finished product of carbon fiber.

For H.G Group, it is very cost-effective.

However, H.G Group was able to make such an off-market move.

For other companies under the same alliance framework as Snecma, they are not so lucky.

In fact, there are very few companies producing carbon fiber within the alliance, and the output is also very low.

Under Snecma's price war, which is lower than others' cost prices, these companies have no ability to protect themselves at all.

All of them could only watch helplessly as Snecma took away their original customers.

Then, with no choice but to file for bankruptcy liquidation!

According to incomplete statistics, in 2003 alone, at least 20 carbon fiber companies in the alliance went bankrupt due to the strife of Snecma!

After this year, the carbon fiber industry within the entire alliance was basically monopolized by Snecma!