Chapter 80

Yang Yuanzhao made significant concessions, and with no further issues, the agreement was quickly signed. Under Yang Yuanzhao's suggestion, the flour mill was named Baoxin Flour Mill. The total installed capacity was three machines, and out of the 45,000 capital, Wei Ming provided 20,000, the two landlords each contributed 10,000, and the remaining 5,000 was left to Liu Shu and Yang Yue. Although they had no money at the moment, this amount could be owed. As for the civil construction costs and labor, Wei Ming and Wu Guangren took charge of it.

This was in Baotou, where there was a lot of wasteland. Not far from Yang Yuanzhao's courtyard, there was a barren slope covered with gravel, unsuitable for farming but ideal for industrial use. The civil construction work was simple: a basic house, a well, and the purchase of a large amount of coal. All of this could be resolved with just a few thousand.

Yang Yuanzhao's next task was to produce three flour machines, aiming to achieve a daily production capacity of 6,000 bags. Although 6,000 bags seemed like a lot, it was only 150,000 pounds, or about 75 tons per day. Even in Shanxi alone, this could be consumed almost entirely, with the foreign firms in Taiyuan selling at least 18,000 to 20,000 bags daily.

With the help of the blacksmiths, the three machines were completed in just over two days.

This, the first industrial enterprise in Baotou, saw a peculiar situation where the machines were ready before the factory. Over two days, a large area was enclosed with a wall, and a standardized workshop was temporarily set up. Thanks to the plastic provided by Yang Yuanzhao, combined with straw, a makeshift factory was completed. The well took time, but fortunately, the steam engine's water requirements were not as high as drinking water. Baotou was near the Yellow River, and a small stream nearby could be diverted to solve the water supply issue.

All work was completed a week later. Zhao Shuming found a fortune-teller to select an auspicious day, and after setting off firecrackers, the Baoxin Flour Mill began its operations.

Six steam engines were placed in the six corners of the factory, designed by Yang Yuanzhao to be in areas with the lowest flour concentration to minimize the risk of explosion. The factory also had excellent fireproofing and heat insulation, further enhancing safety. Based on modern fire safety knowledge, Yang Yuanzhao also regulated the workers' attire, removing any metal items that could spark. This made Baoxin the first factory in Baotou where workers wore uniforms, similar to modern workwear, which were blue.

The three flour machines operated 24 hours a day, with the workers divided into several shifts. Yang Yuanzhao's machines required few operators, and five of the blacksmiths he had trained were selected as engineers to monitor the machines' operation. The machines, designed with modern principles and using military steam engines, had a much lower chance of malfunction compared to other factories. The remaining workers, about a dozen strong men, were responsible for feeding the machines and storing the finished products, mainly physical labor. These workers were easy to find, selected from tenant farmers and refugees.

As a grain processing enterprise, a large storage facility was needed. Without a ready-made warehouse, Wu Guangren contributed his family's largest grain storage, which, though not yet filled with new grain, could be used to store the flour produced by the machines.

In April, the sound of machinery echoed in Baotou for the first time. The Baoxin Flour Mill was officially established, with 56 employees, including several mechanics recruited from Taiyuan. This marked the beginning of Baotou's industrialization. The daily production was 6,000 bags, which increased to 25,000 bags after two months and continued to grow steadily. From a small factory of 56 people, it gradually developed into an agricultural group that influenced the entire northwest and even the nation.

Yang Yuanzhao was in his courtyard, and Zhao Shuming and Wu Guangren were anxiously waiting. It was already May 7th, and the machines had been running continuously for 10 days, producing nearly 60,000 bags of flour, which were piled up in the warehouse. The two landlords, initially excited, had become numb and even worried. The daily expenses for the workers, the coal used by the machines, and the raw materials were a significant cost. However, Yang Yuanzhao did not allow the flour to be sold, which frustrated them. If not for Yang Yuanzhao's strict orders and his position as the largest shareholder, they would have sold the flour in the surrounding areas, which would have brought in a lot of money.

"Uncle Zhao, Uncle Wu, what are you doing here?" Wei Ming asked, seeing Wu Guangren and Zhao Shuming, slightly puzzled.

"Yunju, you came just in time. Go tell Yuanzhao that this can't go on!"

Wei Ming was taken aback but then understood, saying with a smile, "You mean the batch of white flour? It's all arranged. It will be loaded onto the trucks today!"

"Loaded onto the trucks today? Where are they going?"

"Where else? To Taiyuan!" Wei Ming said calmly. Over the past few days, it seemed that Yang Yuanzhao was always in his room, but Wei Ming knew that he had been making extensive arrangements through the Wei and Yang family networks, including detailed investigations and distribution plans for each location. Even as a descendant of a Shanxi merchant family, Wei Ming was amazed by the scale of the operation. He realized that selling goods was not just about large wholesale in one place or door-to-door sales. Yang Yuanzhao had devised different distribution channels and sales methods, and the simultaneous launch and multiple sales strategies were enough to make Wei Ming think. Moreover, there were follow-up sales, extended sales, and even promotions.

The reason for holding back the goods for ten days was to create a stunning effect. 60,000 bags of flour might seem like a huge amount in the small city of Baotou, but in a broader market, it was a small number. Taiyuan alone could consume this amount in a day, and there were many other key cities in Shanxi, such as Taiyuan, Taiping, and Datong. Along the Zhengtai Line, the newly developed train stations, with their convenient transportation and thriving commerce, were ideal sales points for flour.

If there was any oversight in Yang Yuanzhao's plan, it was the transportation. Baotou was relatively isolated, and it took two to three days to reach Datong or Taiyuan, with high costs. If the factory were in Taiyuan, the Zhengtai Line alone would be enough to cover most of Shanxi and even parts of Hebei.

Wei Ming didn't say much about this issue. He was a beneficiary, and if the Baoxin Flour Mill were in Taiyuan, he wouldn't have been involved, as he was just a junior member of the Wei family.

"Taiyuan? Why go so far? Wouldn't it be better to sell locally and make more money?" Wu Guangren complained. Zhao Shuming didn't say anything, but his puzzled expression betrayed his thoughts.

Wei Ming felt helpless with the two landlords. Although they were the leading landlords in Baotou, their vision was limited. They only saw the short term and lacked long-term perspective. Baotou was a key town and relatively wealthy, but it lacked a large population. Without enough people, how could the flour be sold? Baoxin's daily production of 6,000 bags required a significant consumer base. Selling locally would bring in money, but what would happen when the market became saturated? Expanding outward would give the product a distinct local characteristic. Even if the quality was good, it wouldn't be able to compete with foreign flour, let alone challenge its market position.

Yang Yuanzhao's method was better. By using a vague concept, he first saturated Taiyuan and then expanded step by step. This would not only dominate the market in Shanxi and even Mongolia but also allow for further expansion along the Zhengtai Line.

Wei Ming opened his mouth to explain but didn't know how to start. Seeing the confused Wu Guangren and Zhao Shuming, he finally said, "The details are being arranged. Just wait for good news. Yuanzhao called me, so I'm going in."

With that, Wei Ming pushed open the door and entered Yang Yuanzhao's courtyard, leaving the even more confused Wu Guangren and Zhao Shuming behind.