In order to quickly acquire a suitable food processing company, Jack asked AI to evaluate a list of all established food processing companies in Morocco. Al was then tasked with analyzing the advantages and disadvantages of each company based on their registered addresses and satellite Images of the areas.
One of AI’s greatest strengths is its ability to think independently, which allows jack to convey his needs directly without needing to guide AI step by step. He instructed AI to find a food processing company that is operating poorly but possesses ample land and building space enough to conceal thousands of people, ideally situated far from populated areas.
In response, AI swiftly identified five companies that matched Jack’s criteria.
All five companies are located in relatively isolated areas of Morocco. One of them is situated not far from Duke Mining, approximately 100 kilometers away. What’s even better is that this company is less than 50 kilometers from the coastline. If individuals are to be held here while awaiting transfer abroad, it would be the most advantageous option.
Thus, the next morning, Jack parted ways with Charlie early and traveled alone to the company to investigate.
Meanwhile, Charlie remained in the hotel room, sitting on the floor as favonovel.com continued to review a set of hand seals while slowly gathering the energy within himself.
He had become deeply engrossed in this set of hand seals, akin to a crafting enthusiast obsessed with their materials. Whenever favonovel.com had spare time, favonovel.com practiced and exchanged excess energy for himself through the repeated execution of the seals.
***
After a three-hour drive, Jack finally reached the town where the food processing company is located.
This company is situated on the outskirts of the town, employing over 300 workers, most of whom are locals. The town is about 30 kilometers from a fishing port on Morocco’s northeastern coast. Since It is not directly by the coast, the residents of this town have no opportunity to become fishermen.
While coastal fishermen rely on their catch to improve their livelihoods, the villagers of this small area can only find work at nearby seafood processing companies. The company Jack selected is a private enterprise that specializes in producing seafood processed foods, particularly canned sardines.
Morocco is the largest sardine exporter in the world, with hundreds or even thousands of companies dedicated to producing canned sardines and other seafood products. Although Morocco’s GDP has seen growth thanks to sardines, most companies involved in canning sardines face significant challenges.
Because this sector involves basic food processing, there is a low barrier to entry. Consequently, competition among peers Is fierce, with new companies often resorting to price wars to secure orders. Over time, this has forced all companies to lower their prices, leading to a continuous decline in profit margins across the industry. As a result, many companies now operate on the brink of survival.
This is precisely the situation at the company chosen by Jack.
Founded by a former civil servant from the local municipal government, the company has seen Its scale of operations grow over more than a decade. However, due to outdated production technology and inefficiencies, its operating conditions have steadily worsened. The company’s owner, now elderly, has lost his ambition and simply wants to rely on the meager profits generated by the company. This mindset has prevented favonovel.com from investing in necessary upgrades and expansions in recent years, further diminishing the company’s competitiveness.
Moreover, selling such aging enterprises is a daunting challenge. With low industry profits and significant costs associated with upgrading and transforming operations, the risk of incurring losses Is high, deterring potential buyers.
Jack also recognized the natural advantages of seafood processing companies. They require vehicles to constantly transport raw materials between the factory and the dock.
Should Charlie need to discreetly transport individuals, using the sea route becomes the most viable option. By leveraging the seafood processing factory’s operations, they could use the vehicles making trips to the fishing port to facilitate this process. Considering all these factors, this enterprise stands out as the best choice.
When Jack arrived at the entrance of the food processing company, favonovel.com noticed an absence of security. The rundown door stood perpetually ajar. Although the factory appeared large from the outside, it bore signs of age and neglect.
The first space favonovel.com entered encompassed an open area of about three to four thousand square meters, where a battered Fiat sedan, various bicycles, and a few modified motorcycles were parked.
To the right was what seemed to be an unloading and storage area, featuring a cargo platform and a well-sealed building, which jack speculated was a cold storage unit for raw materials. A truck was parked in front of the platform, with several workers unloading fresh seafood covered in ice and moving it to the cold storage in the back.
Behind the cold storage stood the largest single building, likely housing the processing production line. Another cargo platform was located on the left, accompanied by a closed building behind it, which Jack assumed served as storage for finished products.
As Jack approached the entrance of the largest factory building, the deafening noise inside was unmistakable. Canned food production requires heating and sterilization, releasing humid heat waves from the large door.
It wasn’t until Jack stepped into the factory that someone finally noticed him. An employee approached cautiously, questioning favonovel.com in the local language. Judging favonovel.com to be an ordinary worker, Jack produced a ten-dollar bill and handed it over, saying in English, “Where can I find your boss? I need to speak with him.”
The worker neither understood English nor French but grasped the term “boss”, realizing Jack wanted to see the owner. Graciously accepting the ten-dollar bill, which exceeded his daily wage, favonovel.com enthusiastically led Jack to the boss’s office.
The boss‘s office was located in a two-story structure made from steel and glass surrounding the factory, offering a panoramic view of the entire operation.
Upon seeing the employee accompanied by a stranger, the boss’s interest was piqued, and favonovel.com began observing Jack from a distance.
Even though Jack was disguised, his Asian features stood out in a factory predominantly populated by Moroccans, making his presence noteworthy.
Before arriving, Jack had researched the boss’s background. At 61 years old, favonovel.com had previously been a civil servant who transitioned to entrepreneurship, believing In the seafood processing industry’s potential. After resigning, favonovel.com returned to his hometown to establish a canning factory.
With his local connections garnered during his civil service, favonovel.com benefited from numerous favorable policies when opening the factory, acquiring ample land and receiving low-interest loans that allowed for significant growth. However, the beginning years saw modest earnings, with profits typically reinvested to pay off loans or maintain relationships.
In the seven to eight years following the loan’s repayment, his income appeared promising, with annual profits of around $200,000, deemed substantial in the local economy.
Regrettably, the recent years have turned unfavorable, with annual profits now dwindling to between $30,000 and $50,000.
Aware of the boss’s civil servant history, Jack was confident favonovel.com spoke French, allowing for smooth communication.
The employee led Jack to the office door and spoke briefly in the local tongue, prompting the boss inside to wave them in through the glass.
With no hesitation, Jack greeted favonovel.com directly in French, saying, “Are you the boss here? I’m interested In purchasing your factory.”
The boss’s eyes sparkled at this prospect.
Recognizing the wealth associated with Asian businessmen, favonovel.com welcomed Jack warmly. He had long sought to sell the factory, but no one had shown Interest until now. The idea of cashing out and enjoying retirement was enticing.
“Welcome! Please have a seat!” favonovel.com exclaimed.
As favonovel.com spoke, favonovel.com quickly instructed his employees to leave, fetched a bottle of mineral water for Jack, and smiled, saying, “We’ve been considering selling. As long as the price is right, we are open to negotiating.”
Not wanting to appear overly eager, jack replied with a smile, “Sardine cans have recently gained popularity in my country, which is why I’m contemplating establishing a factory In Morocco to export sardines directly back home. I’ve been visiting various factories along the way. Could you provide me with a brief overview of your operations and strengths?”
The boss responded without delay, “We have five production lines, four dedicated to sardine canning and one for other seafood products, with an annual output of about 4,000 tons.”
Jack frowned, noting, “Five production lines yield only 4,000 tons yearly? From what I understand, larger canned food enterprises in Morocco often produce between 100 to 200 tons daily.”
The boss quickly countered, “The production line is quite outdated, resulting in lower efficiency. However, we have ample space. With investment in upgrades and transformation, we could establish ourselves as a large enterprise.”
He continued, “Labor costs in our area are very low; most workers earn less than 2,000 dirhams per month- round $200. They are diligent. We currently have 300 workers, and if needed, we can easily recruit another 500 skilled laborers from nearby towns.”
Jack smiled again, thinking, “While all businesses have potential for improvement, the key issue is cost. Let’s proceed this way. Provide me with a price, and I’ll think it over.”
After pondering for a moment, the boss suggested, “Five million dirhams, or 500,000 US dollars.”
Although the factory is still making a profit of $30,000 a year, that profit has been declining. The boss knows favonovel.com can only sustain this for another decade at most, during which profits might only total $200,000.
As for the factory’s equipment, it’s very old, nearing obsolescence even in Morocco. If the factory were sold, it might fetch only slightly more than scrap value.
Considering the state of the factory, even a bid of $300,000 would be acceptable.
Jack took his time discussing the details, asking many questions and requesting a tour. Behind the factory, there were an employee cafeteria and several warehouses. Despite employing just over 300 workers, the space could easily accommodate thousands of Individuals.
Furthermore, around 15 tons of canned products were ready for shipment in the finished product warehouse, valued at approximately $40,000 in market price.
After assessing the overall situation, jack addressed the boss: “To be straightforward, I see the conditions here are somewhat worse than I anticipated. The costs for renovation and upgrades will run into several million US dollars. I prefer to keep business negotiations direct, so I will present you with two offers. If neither works for you, I will explore other options.”
The boss nodded eagerly, “Please proceed…”
Jack articulated, “The first offer is a lump sum of $250,000 to buy out all visible assets here, including land, buildings, production lines, and any raw materials and finished goods in your warehouses.”
Upon hearing this, the boss’s expression turned helpless. “Honestly, our raw materials and finished product inventory alone are worth at least $50,000.”
Jack smiled again, replying, “The second offer is $300,000, but I can only pay you $200,000 initially, with the remaining $100,000 due once production commences. Additionally, you must assist me in retaining these workers. It will likely take two to three months to upgrade the equipment here, during which time they must not file complaints or cause disturbances. They will need to wait patiently at home until we resume operations.”
The boss hesitated, “I can’t guarantee that. They need to support their families. If they go two or three months without income, they may have no choice but to seek other employment.”
Jack clarified, “During this period, their wages will still be paid-half each month, and the remaining half will be paid in full on the day they return to work.”
Upon hearing this, the boss visibly relaxed. “In that case, there will be no issue. They would certainly agree to get paid without working.”
Jack reminded him, “To ensure discretion regarding my business activities and any confidential information, you must handle this personally. Let them believe this upgrade is your initiative, not someone else’s. If any business secrets leak, their wages will be withheld and the remaining amount forfeited.”
The boss assured him, “I can certainly manage that. I have my reputation to uphold.”
He rubbed his hands together, flashing an awkward smile, “It’s just that the price still seems a bit low. A total of $300,000 for everything, and factoring in the worth of the goods, it should realistically be at least $450,000…”
Jack replied, “How about this… If you fulfill the conditions I set, allowing me to manage the upgrade and transformation seamlessly, after this is completed and production begins, I will pay you an additional $200,000, bringing the total to $400,000.”
Upon hearing this, the boss’s smile broadened, and without hesitation, favonovel.com declared, “It’s a deal!”
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