Chapter 181: Investing in the Future "Formosa Plastics" Group
"This Wang Yung-ching is quite well-known in Taiwan," Wei Zetao continued without much thought. "He started his first business at fifteen selling rice, made his first pot of gold, then got into the lumber business.
Later, during the war, the price of wood skyrocketed, and he made tens of thousands of U.S. dollars. By 1954, he entered the plastics industry, and now his company is the only one in Taiwan capable of producing plastic pellets."
"Impressive. People who succeed are never ordinary," Yang Wendong said with a smile. "Have you contacted them yet?"
"Not yet," Wei shook his head. "As soon as we got preliminary info, I came to report to you. I plan to go to Taiwan myself, take Old Hong and a few others, and conduct an on-site inspection.
We need to see if their plastic pellets meet our requirements."
"Good. Go ahead with it," Yang nodded. "I'm not fully convinced yet either. We'll only consider cooperating after we've made contact."
Even though Wang Yung-ching would become very famous in the future, he was still in the early stages of his entrepreneurial career now. There was no guarantee the quality of his product would meet Changxing Industrial's standards.
It was entirely possible that his pellets simply wouldn't work for their applications.
"Understood. Once I've confirmed the appointment, I'll depart right away," Wei said.
"Mhm." Yang nodded. Taiwan was close enough—an overnight ferry would get them there easily.
Three days later, Wei Zetao, Hong Xuefei, and four other team members departed for Taiwan.
Three days after that, upon returning, Wei and Hong went directly to Yang's office.
"Have some tea," Su Yiyi said with a smile, having already brewed a pot for Yang. Seeing the two guests arrive, she politely poured them each a cup.
The two men were caught off guard by the gesture. "Thank you, Miss Su."
In the past, it had been enough to show courtesy to Su Yiyi because of her closeness to Yang.
But now, with her role more official—and the recent wedding—her status was different altogether.
"You're welcome," Su Yiyi replied with a smile.
After sipping his tea, Yang asked, "So, how did it go with Formosa Plastics?"
Hong, the technical expert, replied first, "Mr. Yang, their plastic pellets might not suit our needs. They're mainly used for making PVC piping, which is mostly for the construction industry."
Wei added, "Yes. Even though they're all plastic pellets, the technical specs vary significantly. More importantly, the safety ratings are different too.
Formosa's pipes are mostly for drainage—virtually zero safety requirements. It's considered a lower-end application."
"That's a pity," Yang said, nodding thoughtfully.
There were countless types of plastic, each with very different properties. Yang wasn't an expert, but he understood the basics: things like flame resistance, hardness, flexibility, density, corrosion resistance, and so on.
Different industries had completely different standards. When designing their suitcase, for example, they had referred to European and Japanese standards for household goods.
"However..." Wei said, shifting gears. "We did meet the owner of Formosa Plastics—Mr. Wang Yung-ching. He's heard of you, Mr. Yang, and knows we're looking for a Taiwan-based pellet supplier. He's quite interested.
He would like to visit Hong Kong in the near future and meet you in person. You can decide the time."
"He wants to come to Hong Kong?" Yang raised an eyebrow. "Alright, let him come. Tell him I'm available within the next week. It'll also give him a chance to see how we operate."
"Understood. I'll call him this afternoon," Wei said.
July 25, Yang Wendong met the man who would one day become Taiwan's richest man: Wang Yung-ching.
Of course, being from the internet generation, Yang had never paid much attention to Wang's photos. He only knew the name.
At present, Wang looked extremely thin—so thin it seemed unhealthy, not unlike many of Hong Kong's poor.
But this wasn't from hunger—likely a chronic digestive issue.
"Mr. Yang, it's an honor to meet you," Wang said with a warm smile after Wei introduced him.
Yang shook his hand and replied, "Mr. Wang, I've heard of you here in Hong Kong as well."
"Oh? My name's known in Hong Kong?" Wang asked with genuine curiosity and a hint of delight.
When Wei and his team had visited Formosa Plastics a few days earlier, Wang had taken the opportunity to do his homework.
He researched Yang's rise, his current industrial footprint, and the potential of his products.
The conclusion shocked him: even with just its current offerings, Changxing Industrial had massive and rapidly growing demand for plastic raw materials.
That's why he'd personally come to Hong Kong.
Yang smiled. "I'd heard about how you expanded your production capacity against market trends. That's something few could do. Once I understood the full story, I was deeply impressed."
In his past life, everyone knew about Samsung's counter-cyclical price wars.
Wang had pulled a similar move.
Yang had found records showing that in 1957, when no one wanted his pellets and shareholders were urging him to cut losses, Wang instead bought back shares and took out loans to expand production.
He bet that increased scale would reduce unit costs and allow him to survive the downturn.
It was a high-risk move—a true "burn the ships" strategy.
Anyone with the guts to do that had to believe in their mission with absolute clarity.
Wang smiled proudly. "You flatter me, Mr. Yang. When I entered the plastics industry, I was determined not to quit until I succeeded.
I could have pursued a safer path, of course—other industries carry far less risk."
"That's why I admire you," Yang replied.
He had deep respect for those who poured their heart and soul into real manufacturing.
In his past life, some of China's biggest private companies had done just that—risked everything for their businesses.
Yang knew that, if faced with a similar situation, he would be willing to invest in manufacturing too.
But if the risk was so high that it could wipe him out entirely, his instincts would tell him to pull back.
Some people are born to be empire-builders. Wang Yung-ching was one of them.
Naturally, as a time traveler, Yang Wendong already knew the direction of future technological development, so he was never truly worried about any of this happening by accident.
Once everyone was seated, Yang Wendong spoke up. "Mr. Wang, may I ask what prompted you to come to Hong Kong and request a meeting?"
Wang Yung-ching replied, "Naturally, I came to discuss our potential cooperation."
Yang followed up, "But from what my team told me, your company currently produces plastic pellets primarily used for making water pipes—not exactly suitable for consumer goods. So how do you propose we cooperate?"
Wang responded, "That's correct. Formosa Plastics' pellets are currently optimized for piping, which is the biggest market need in Taiwan.
However, if your company requires it, I can build a new plant specifically tailored to produce the types of plastic pellets you need."
Yang, a seasoned businessman, immediately picked up on the underlying message and asked, "So you're saying that if I commit to a long-term, stable order, you'll proceed with building the new plant?"
Wang Yung-ching smiled. "Mr. Yang, if your needs only amounted to around 100 tons per month, then perhaps I could slightly modify our existing factory to make it work.
But based on my analysis, your actual demand will be far greater. To meet that kind of volume, I would need to build a large-scale facility.
The issue is, such an investment is huge. If I build it and you don't follow through, it could financially ruin me."
"That's understandable," Yang said, smiling. "But don't you think it's a bit much to ask for a multimillion-dollar procurement contract before anything is even built?"
In the future, the demand for rolling suitcases would explode. Once people realized how convenient they were, they wouldn't just use them for travel. Moving house, short trips—even everyday use would become common.
Even without exclusive patents, Yang knew that if he could lower costs sufficiently, he could still claim a large share of the market. After all, in the original timeline, Hong Kong's manufacturing boom had never depended on patents—it thrived on low costs and fierce competition.
Wang nodded and said, "Yes, it's a bit much. But I can guarantee that I can produce plastic pellets that meet your standards.
This kind of production isn't overly technical—I can always hire experts from Japan. What's difficult is the upfront capital investment, sourcing the chemical precursors and petroleum derivatives, and—critically—having a major client like you.
We already have raw materials in Taiwan. I'll take care of the large-scale investment. But you need to be that cornerstone customer. That way, both sides benefit."
"In theory, you're absolutely right," Yang nodded. "But let's approach it from another angle.
It's unrealistic for me to sign a multimillion-dollar purchase agreement without seeing a single product. But your reasoning makes sense.
So how about this: I invest in your company. Wouldn't that reduce your risk and increase my potential return? Still a win-win, isn't it?"
"You want to invest in Formosa Plastics?" Wang was visibly surprised.
Plastic production was heavy industry. While it had good long-term potential, few were willing to invest in such capital-intensive ventures. That's why Formosa Plastics had no competitors in Taiwan.
Yang shook his head. "Not a joint venture to build a new factory. I mean buying equity in Formosa Plastics itself. What do you think?"
Under normal circumstances, Yang wouldn't invest—even if the company had enormous promise.
First, he didn't know the sector. Second, heavy industry required massive capital and had long return periods. Most profits would be reinvested into expansion, and without going public, it would be very difficult to realize any gains.
Even after listing, these kinds of companies weren't popular with stock market investors. Why? Because the stock market loves "stories."
Real estate, tech, consumer brands—they're easy to hype. Heavy industry? Hard to understand, harder to pitch.
But Wang Yung-ching was different. He would go on to build the world's largest plastics empire. Investing now, at the ground floor, would yield returns far greater than anything in Central's real estate market.
After thinking it over, Wang said, "I've never considered that possibility before."
"That's alright. Take your time to think about it," Yang replied. "There's no rush."
Wang added, "Mr. Yang, I appreciate your interest in my company. But I don't intend to give up too much equity."
"No problem. Everything is negotiable," Yang replied. Then, after a pause, he added, "If my investment isn't enough to cover the cost of building a new factory, I can inject more capital—either as equity or as convertible debt.
Alternatively, I could secure financing through Hong Kong's banking system. You won't need to worry about funding."
Wang nodded. "Alright, I'll go back and think it over. Also, aside from equity investment, we'd still need to discuss the specifics of our supply agreement.
If we eventually operate as partners, the procurement terms need to be settled in advance."
"Of course. I won't promise to give you 100% of my orders from day one. But as long as your product meets our standards, I'll gradually increase the volume," Yang said with a smile. "As for exact figures, our teams can sit down and work out the details."
"Sounds fair." Wang nodded. He had come to Hong Kong to find a major client—but never expected that client to want to buy into his company.
Yang grinned. "Alright then. If you're not in a hurry to head back, take a few days to enjoy Hong Kong. It's on me."
"Thank you," Wang replied. For men at their level, treating someone to a short trip was the equivalent of a regular person buying a friend a drink. Refusing would be rude.
Afterward, Wei Zetao escorted Wang out.
Su Yiyi, who had been quietly observing the whole time, finally spoke up. "Dong-ge, is this your first time investing in someone else's company?"
"Yes. If it goes through, it'll be the first," Yang nodded.
He wasn't someone who built his fortune through finance. The only time he had seriously considered investing was last year, when he tried (and failed) to buy into Ming Pao.
Even his supplier relationships were usually structured as joint ventures, not equity investments.
Su Yiyi asked curiously, "Why are you so confident in this plastic company? I remember you once said that most factories aren't worth investing in."
Yang smiled. "That's true—for most factories. But not for Formosa Plastics."
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