663 An Old Friend (1/2)
1 US dollar!
The desalinated water at this price was cheaper than some of the water pumped from the underground aquifer! Attri never heard of such a powerful water desalination technology!
The cost of seawater desalination was highly dependant on the local electricity price. Xin had no oil production and used renewable resources for electricity generation. While it was environmentally friendly, electricity was not cheap. Based on CWW's estimate, a desalination plant on Coro Island, even with the most advanced equipment, would have a cost of 2 US dollar per ton.
So when Jiang Chen suggested the cost of 0.5 US dollars, Attri was very shocked.
Even with a nuclear power plant on Coro Island, the desalinated water wouldn't be so cheap!
Both parties quickly reach an agreement and penned the negotiating terms.
Future Heavy industrial will build the desalination plant, CWW will be responsible for the pipeline to connect Future Group's treated water to Xin's water supply system.
Attri immediately asked his assistant to print the contract and signed with Jiang Chen a water supplying contract of 20,000 tons per day. He looked anxiously, afraid Jiang Chen may back out on the deal.
When the contract was signed, Attri personally sent him to the door.
”The black coffee I brought back from West Australia, do you want to take some home?”
”No need.” Jiang Chen thanked him for the offer.
He already experienced how awful it tastes.
A 20,000 tons supply agreement, take away the cost related to human labor, 0.5 US dollar per ton of profit could bring Future Group a monthly income of 300,000 US dollar.
The profit was meager, even if Future Group purchased CWW's water supplying system and vertically integrated the entire chain, it would at most double the number.
From the start, Jiang Chen put his focus on the international market. He happened to have a person's phone number that would definitely be interested in cheap water.
”Hello? Mr. Yerif. It's me, Jiang Chen. Future Heavy Industries has some new gadgets now… No, no, no, I'm not referring to a new robot, it's water desalination equipment.”
Just as Jiang Chen got into the car, he took out his phone and called Yerif in the far Saudi Arabia.
”Water desalination equipment? We do have a plan to build a new seawater desalination plant at the coast of the Red Sea, but we contracted Matrix to design it for us. They are the experts in this field and an old partner of ours.” Yerif heard Jiang Chen seemingly to be advertising desalination equipment to him, and his brows slightly furrowed.
Although he had a great personal relationship with Jiang Chen, he would not give grounds because of personal relationships to a project related to the wellbeing of Saudi's people. Matrix promised them to build a 1,097,000 cubic meter mixed desalination plant powered by ultra-high-concentration photovoltaic technology in the Mecca area off the Red Sea coast to replace high-energy and the inefficient petroleum energy desalination plant.”
Although in the oil rich Saudi, electricity generation through combustion was cheap, from an environmental and sustainability perspective, the cons of ”oil exchange for water” outweighed the pros.
And with this mixed energy desalination plant, the cost per ton would be lowered to 1.5 US dollar. This price was reasonable to Yerif.
”What is the water price for your company?” Jiang Chen asked.
”Based on half year stats, in the Mecca area, on average it is 7 Rial per ton.” Yerif said while giving it a thought.
7 Riyal was equivalent to 1.9 US dollar.
Jiang Chen estimated while a smile emerged on his face.
”Then, are you interested in 1 US dollar per ton of fresh water?”
Yerif was stunned when he heard Jiang Chen's offer to the point that he forgot to open his mouth when his beautiful Amira put a peeled grape near him.
”1 US dollar per ton? Cost?”
”The cost is going to be a bit lower, 1 US dollar is the price we give you,” Jiang Chen said.
Yerif was stunned. He immediately stood up, and walked to the window of the palace with his phone.