Chapter 897: Come, Let Us Mass-Produce Steam Engines Like Madmen!
Boulton stood up immediately, looking at Sandel. "John, this is not what we agreed upon. That money you've already..."
Previously, to entice Sandel to jump ship, he had offered a price of 7,000 pounds sterling plus a 4% stake in the Boulton-Watt Company.
Sandel quickly gestured to his cousin, Frank. Sandel was a man of pure technology; to successfully execute the mission given to him by the Crown Prince, he needed someone with experience in corporate management and a silver tongue. Consequently, the Intelligence Bureau had arranged for a "cousin" to accompany him to Britain.
Frank immediately took over the conversation. "With all due respect, my cousin and I did not abandon our comfortable lives in France and return to Britain for a mere pittance. We are looking for a career we can truly call our own."
He glanced subtly at Watt. "And given my cousin's previous experiences... without a sufficient stake in the company, it is difficult for him to feel his future is secure."
Hearing this, Boulton couldn't help but sigh.
He knew that Watt had used his authority in the past to suppress Sandel, causing Sandel's invention, the high-pressure gauge, to be shelved for a long time. This had ultimately driven Sandel to leave the company in bitterness.
Therefore, it was understandable that Sandel had reservations.
Boulton and Faulkner exchanged a quick look. Boulton cleared his throat and said, "John, I also believe your shares should be increased, but 20% is simply too much."
Following a look from his "cousin," Sandel delivered his rehearsed lines. "The thing is, I'm not short on money. I can invest. Oh, and then there are the patents."
Frank explained from the side, "My cousin is willing to put forward 20,000 pounds, plus all the patents for the high-pressure steam engine, to acquire that additional 14% stake."
He looked at the other shareholders. "As you all should know, if patents are held by an individual, it can easily hinder the company's development."
The hearts of all the shareholders, including Boulton and Faulkner, skipped a beat.
Previously, it was precisely because Watt held a vast number of patents for standard-pressure steam engines and used them to suppress high-pressure technology that the company had been forced to pay a high price to bring Sandel back to develop their high-pressure line.
In a sense, Sandel's willingness to sell the high-pressure steam engine patents to the company showed he was truly thinking about the firm's future.
Furthermore, he was providing 20,000 pounds sterling in cash.
The shareholders knew that Boulton's earlier claim was mere blustering. The company's business had been shrinking for the past two years, and currently, a 14% stake wasn't even worth 40,000 pounds.
Faulkner was the first to voice his support. "In that case, I agree to Mr. Sandel receiving a 20% stake."
Several minor shareholders immediately chimed in with their agreement.
Boulton looked at the silent Watt and nodded. "The company is about to start production on the high-pressure steam engine, which requires a significant amount of capital."
"With Mr. Sandel's 20,000 pounds, we won't even need to take out a loan."
"Additionally, it is crucial for the company to control the patent technology."
"Therefore, I agree to Mr. Sandel's request for shares. His stake will be diluted from the holdings of all other shareholders."
Soon, all the minor shareholders, excluding Watt, cast their votes in favor.
Thus, the stance of Watt, who held 28%, became irrelevant. According to the company's bylaws, any major resolution only required the consent of more than 70% of the shareholders.
At Boulton's signal, the board secretary immediately went to prepare the equity transfer agreement.
Boulton impatiently moved to the topic he cared about most.
"Now, let us formally discuss the production of the high-pressure steam engine."
He opened the documents on the table. "The Navy's requirement is to deliver at least 22 high-pressure steam engines and their accompanying maintenance parts by June. To achieve this goal, we need to invest..."
He looked at Sandel. "John, you'll need to determine the investment required for the new workshop."
Before Sandel could speak, Frank suddenly spoke up loudly. "Mr. Boulton, why is our goal only to produce 22 machines?"
"Eh? Because the Navy's order is for 22 units..."
"If I may be so bold, your approach lacks foresight." Frank turned to survey the other shareholders. "As everyone knows, the higher the planned output, the lower the cost."
"If we only produce 22 units, the cost of our high-pressure steam engines will likely be double or even triple that of comparable French products!"
His expression was incredibly solemn. "Are we prepared to face a stagnant market once we've delivered the Navy's order?"
The shareholders began whispering among themselves, nodding in agreement.
Frank continued his persuasion. "Do you know why the price of French steam engines is so low?"
"From the very beginning, they planned to produce at least 150 steam engines per year. They built their factories and ordered raw materials based on that volume, which brought their costs down to an extremely low level."
"If we want to defeat French goods and capture the European market, we must show even greater determination!"
One shareholder immediately asked, "Then what do you believe our production volume should be set at?"
Sandel, receiving a look from his "cousin," replied, "At least 200 units per year."
Boulton and the others sucked in a sharp breath of cold air. "That many?"
Frank explained, "The French high-pressure steam engines have been in production for a long time. Their processes are mature, and their costs are already very low. We must utilize a larger scale to achieve even lower costs."
A shareholder asked cautiously, "But can that many steam engines actually be sold?"
"Of course!" Frank said with certainty. "Last year alone, the French sold over a hundred units in Upper Hesse, and their sales across all of Europe approached 300 units."
"Even if it's difficult for our steam engines to enter France, we have the advantage of our domestic market."
"As long as our price is lower than the French product, we could even sell 300 units a year. Therefore, setting the production scale at 200 units is a very conservative plan."
Indeed, the core of Joseph's plan was to lure the Boulton-Watt Company into blind expansion, eventually leading them to bankruptcy when their massive investments failed to yield returns.
Of course, that was only the worst-case scenario for the British.
The more likely outcome was that the British government, unwilling to watch their country's most advanced steam engine company collapse, would provide continuous financial subsidies.
And that money was destined to be thrown away.
Sandel had come to Britain specifically to dig a hole for the Boulton-Watt Company.
The new high-pressure steam engine he had designed utilized an obsolete plan that the French United Steam Engine Company had already proven unfeasible. It lacked all the core technologies, such as advanced cylinder forging processes, sandwich riveting techniques, spring-loaded safety valves, four-way valves, and new high-pressure gauges.
This high-pressure steam engine could indeed manage an output of 50 horsepower, but if they wanted to increase it even by a single digit later on, they would have to scrap everything and start over.
In fact, if the British technicians developed a habitual way of thinking based on this design and became trapped in the wrong technical route, it would cost them more energy and funding than starting from scratch.
And even within this obsolete design, Sandel had left hidden traps.
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