Story of a Big Player from Gangnam

Chapter 464: GH Plastic Co., Ltd. (2) – Part 1

Monday came around.

Gun-Ho went to work at GH Mobile. It had been a while since he went there. When he arrived, he called for the executive officers for a meeting.

President Song, the research center’s chief officer, the accounting director, and Director Jong-Suk Park from the production department attended the meeting.

“We don’t have any claims filed, do we?”

“No, we don’t, sir. I believe that Director Jong-Suk Park handles the production site very efficiently that we haven’t received even a single claim yet.”

“That’s good to hear. Oh, are you all aware that Director Park is now a father? He has a daughter.”

“Really? He should have told us. Director Park, you can brag about that kind of thing. We didn’t know.”

President Song said to Director Park with a smile. Director Jong-Suk Park scratched the back of his head.

“That’s why he has been acting like an all grown-up.”

When the general affairs director talked about what he observed recently, everyone in the office laughed.

Gun-Ho looked at the chief officer of the research center and asked, “Did we finish and send the mould to President Min-Hyeok Kim in China, that he requested?”

“We have completed the mould, but we are still in the testing phase for its product prototype. It seems that we will be able to send the mould to him by tomorrow.”

“Please make sure that you get the payment for the mould.”

“Okay, sir. I will ask the accounting director to issue a tax invoice for it.”

Gun-Ho then looked at President Song and said, “Our monthly sales revenue is around 700 million won, isn’t it?”

“That’s correct. We are currently in contact with L Group’s factory in Changwon City. Their plant manager is a friend of our Director Yoon in Dyeon Korea. They went to the same high school and same college— Seoul National University even though they majored in different subjects.”

“I see.”

“Director Yoon introduced his friend from L Group to Director Kim. During the conversation with Director Kim, Director Yoon’s friend mentioned about his company’s new product development, and Director Kim didn’t miss the opportunity to connect that person with GH Mobile.”

“Hmm.”

“So, I went to Changwon City to talk further with that person during your absence.”

“What did he say?”

“His response was positive, but he wants to send a team of inspectors to visit our factory before giving us any clear answer.”

“Here?”

“Yes. I think they will visit here sometime this week.”

“They will want to see our production site then.”

“Right. They will visit our production site and also our research center. Also, they will want to check our product quality control system. I already talked to the team leader of our quality assurance team and asked him to prepare the documents describing our preventive and corrective action process. I told him to bring the documents to me once they are ready, so I can review them.”

“Hmm, please be ready to answer for any questions that they might have, their decision maker would have plenty of information to base his decision on.”

“Understood.”

“Well, if you don’t have anything else to talk about, let’s get back to work. I need to go to Dyeon Korea.”

“Yes, sir.”

The executive officers walked out of Gun-Ho’s office carrying their notebooks. Director Jong-Suk Park was the last person leaving the office, and Gun-Ho remembered that he had something to talk about to him.

“Oh, Director Park, hold on!”

Director Jong-Suk Park turned around.

“Close the door and come close.”

“What?”

“I met Mr. Sakata Ikuzo during my trip to Japan, and he asked me about how you’re doing.”

“Oh, really? How is he doing?”

“He looked older than before, but he seemed to be healthy. He was happy to know that you have a daughter now.”

“Really?”

“He actually gave me a butterfly figure that he made with a piece of wood for your present. I forgot to bring it here today. It’s at my home. I will bring it next time I come.”

“Haha. Sounds good. You don’t have to rush though.”

“How’s your baby? Did she grow a bit already?”

“Yeah. I gave the 1 million won to my wife, which you had sent to me to congratulate on the addition to our family. She made sure to thank you.”

“Really? It’s nothing.”

“How’s your life, bro? Are you getting along with your wife?”

“Haha. Yes. She is doing fine, and we are good.”

“It’s good to be married, right?”

“That’s how you feel?”

“Yeah, I love it. I always go straight home after work.”

“Now you know what has to be the top priority, huh?”

“Well, I will get back to the production site. I think I’d better start preparing the site for the visit of our potential buyer from Changwon City.”

“Sounds good. Keep up the good work!”

Gun-Ho went to Dyeon Korea and again had a meeting with the executive officers. Director Kim, Director Yoon, the internal auditor, Mr. Adam Castler, and the interpreter attended the meeting.

“Is there any change in our sales revenue?”

“Our current monthly sales revenue is 2.7 billion won. Since we recently added machine no. 13 and no. 14, we are expecting to see an increase in the sales revenue soon.”

“Let’s request to ship us machine no. 15 and no. 16 as well.”

“Yes, sir.”

“I’ve heard about a potential business with the L Group’s factory in Changwon City. Is there any update?”

“I was told that they would send their personnel to GH Mobile anytime soon. Once they give the green light to the business, they will ask GH Mobile to produce their products using Dyeon Korea’s raw materials. And, if that works well, they will start asking their other vendors to use Dyeon Korea’s raw materials to manufacture their products as well.”

“Hmm, that’s really good. I hope everything works out with them. I was told that their factory manager is a friend of Director Yoon’s.”

“That’s right, sir. He is actually a very close friend to me. But he wants to be careful on this business deal, so he will make his decision based on their inspectors’ opinion after their visit to our factory.”

“Of course. Oh, I talked with Dingding in China, and she is asking if you could lower the product cost.”

“They are getting our products for 4.5 million won per ton, aren’t they?”

“That’s correct. According to her, they are selling them for 4.8 million won which rendered 6.6% of percentage margin. She said that it leaves her nothing much once she pays for transportation fees.”

“Well, we will have to analyze the product cost first.”

“Take your time and let me know.”

“One thing that I’d like to point out is that the supply price is closely related with the international crude oil price. Our company buys raw materials from Dyeon America, and then we produce our own raw materials after going through our own process. Dyeon America’s raw materials are derived from petroleum, and their price is greatly affected by the international price of the crude oil.”

Mr. Adam Castler added.

“The crude oil price is currently fluctuating because of the sanctions against Iran which were imposed by the U.S. The U.S. government is pressuring Saudi Arabia to increase its oil production in an effort to stabilize the price; however, if the oil price stays high as it is now, it would be hard for us to lower the supply price.”

“Hmm, that makes sense since all chemical products are inherently related to petroleum in some way after all.”

“I understand that the transportation cost is not marginal at all, especially for China because of its enormous size of the continent. We will carefully analyze our product cost again and try to come up with a solution to help the sales company in China.”

“Please do so. Mr. Adam Castler, why don’t you visit the sales company in China? Dingding speaks English fluently, so you won’t have any problem talking with her about our business.”

“The sales company is located in Suzhou City, isn’t it? Suzhou City is a major tourist destination as well. I’ve always wanted to visit that city.”

“When you are ready to go on a trip there, please don’t visit her empty-handed. You’d better bring a present for Dingding. She will welcome you more.”

“Haha. Understood, sir.”

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