Rebirth: Starting from Lighting Up the Tech Tree

Chapter 180 Expanding Production Capacity

Zuo Cheng stood in front of the whiteboard, holding a red marker in his hand.

A production capacity analysis chart is drawn on the whiteboard. On the left is the existing satellite factory, which produces six rockets per year. On the right is market demand; existing customers with clear intentions require fifteen launches, and with potential customers being contacted, the total demand over the next two years exceeds forty launches.

"The shortfall is obvious." Zuo Cheng drew a huge cross between six and forty with a red pen. "The existing production capacity can't even meet the signed contracts."

Li Guodong stood to the side, holding a freshly printed report: "I worked with several engineers overnight to develop a plan. Two options: renovation or new construction."

"explain."

"The first option is to upgrade and expand the existing factory. Add automated welding equipment, expand the final assembly plant, and implement a three-shift system. An investment of 800 million yuan will yield results in six months, increasing production capacity from six to twelve rockets per year." Li Guodong turned to the second page. "The second option is to build a new factory in the northwest. It's close to the launch site, saving time and costs associated with rocket transportation. The new factory is designed to produce fifty rockets per year, with a fully automated production line. An investment of 2 billion yuan will be required, and it will be completed in eighteen months."

Zuo Cheng put down his pen: "Let's take both paths. Upgrade the existing factory to solve the immediate problem, and build a new factory to address the problems for the next three years."

"But two billion is no small sum."

"Money isn't the problem," Zuo Cheng said. "After our Series B funding, we still have over 3 billion yuan in cash on hand, plus prepayments from eight clients, so we have enough funds. The problem is time."

He turned around and looked at the core team in the conference room. Yu Ying was sitting on the left, Han Lu on the right, and Liu Wei and Captain Qin were also there.

"The site selection team will depart in three days," Zuo Cheng said. "The target area is within a 300-kilometer radius of the Northwest Launch Site. The requirements are: convenient transportation, close to railway and highway trunk lines; land area of ​​no less than 500 mu (approximately 33 hectares); and supporting policies from the local government."

"Why the Northwest?" Yu Ying asked.

"Three reasons," Zuo Cheng said. "First, its proximity to the launch site allows for direct transport of the rocket after it's built, saving thousands of kilometers of land transportation. Second, land costs are low in the Northwest region; 500 acres of industrial land cost less than one-tenth of what it would cost in Hangzhou. Third, the area has a well-established aerospace industry base, with relatively mature talent and supply chains."

Three days later, the site selection team brought back three candidate sites.

The first site is 80 kilometers north of the launch site, with ample land, but the railway freight station is 40 kilometers away. The second site is 150 kilometers east of the launch site, with convenient transportation, but land prices are high. The third site is 60 kilometers south of the launch site, with 600 acres of land, adjacent to the highway and freight railway, and the local government is willing to provide tax breaks and infrastructure support.

Zuo Cheng didn't hesitate: "The third one."

"Won't you take another look?" Li Guodong asked.

"I've looked at it. The third location is closest to the launch site, has the largest land area, and the best policy," Zuo Cheng said. "We'll send someone to negotiate the land contract tomorrow."

A month later, the design plan for the new factory was completed.

The site covers a total area of ​​600 acres and is divided into three functional areas. The North Zone is the production and manufacturing area, including welding workshops, assembly lines, final assembly plants, and fuel refueling stations. The Central Zone is the R&D and office area. The South Zone is the supporting warehousing area.

"What is the concept of a fully automated production line?" Zuo Cheng asked.

"The robots used for welding the rocket body have a precision control within 0.1 millimeters. The automated assembly line for engine assembly has reduced the time from two months to two weeks. The intelligent overhead cranes and automatic docking equipment used for final assembly have reduced the cycle from thirty days to ten days," said Li Guodong.

What about production capacity?

"The designed production capacity is fifty units per year," Li Guodong said. "With two shifts, we can reach seventy units. With three shifts, theoretically, we can approach one hundred."

Zuo Cheng nodded.

One hundred rockets. This number means that 402 will have the world's highest annual production of commercial rockets, exceeding SpaceX's current capacity.

The groundbreaking ceremony is scheduled for three months from now.

That day, the sky over Northwest China was exceptionally clear. Excavators had already leveled a large area of ​​land on the 600-acre site. A temporary stage was erected in the center of the site, with a backdrop that read: "Groundbreaking Ceremony of the 402 Science and Technology Sky Rocket Industrial Park."

Many local government officials were present, including the Party Secretary, Mayor, Deputy Mayor, and heads of the Development and Reform Commission and the Industry and Information Technology Bureau. Zuo Cheng stood on the stage.

In his address, the municipal party secretary stated, "The decision by 402 Technology to build its rocket industrial park here is an affirmation of our business environment and a significant contribution to my country's commercial aerospace industry. The municipal government will fully support it."

Zuo Cheng's speech was brief: "Three months from now, this place will still be a wasteland. Eighteen months from now, China's most advanced commercial rocket will be built here. We will not let this land down."

At the groundbreaking ceremony, Zuo Cheng and the municipal party secretary shoveled the first spadeful of earth together. Dozens of camera shutters clicked simultaneously.

After the ceremony, Zuo Cheng did not leave immediately. He stood at the edge of the venue, looking at the distant Gobi Desert. The sun was setting, and the sky was dyed orange-red.

Li Guodong walked over: "What are you thinking about?"

"We're considering the costs," Zuo Cheng said. "Currently, the cost per unit is 60 million. After the new factory goes into production, labor costs will be reduced by 70%, and centralized procurement of raw materials will further reduce costs by 15%. All things considered, the cost per unit can be reduced to 25 million."

"Twenty-five million?"

"Yes. Twenty-five million RMB, which is less than four million USD," Zuo Cheng said. "SpaceX's Falcon 9 rocket costs about thirty million USD internally, while ours is only one-seventh of that."

Li Guodong was silent for a moment: "What does this mean?"

"This means we can set the launch price at $2,000 per kilogram and still have a 50% profit margin," Zuo Cheng said. "At this price, no competitor in the world can match it."

He turned around and looked at the construction site behind him. The roar of the pile driver echoed across the empty Gobi Desert, as if announcing something.

"The expansion of production capacity is not about building more rockets," Zuo Cheng said. "It's about making space affordable, affordable enough for everyone."

Li Guodong nodded.

In the distance, at the launch site, the trail of flame left by Sky One had already dissipated into the sky. But Zuo Cheng knew that was only the beginning.

After the new factory is completed, a new Space Rocket will be born here every seven days, and then transported to the launch site to go into space.

One every seven days.

Fifty per year.

Ten years later, five hundred pieces.

By then, the name Sky will truly become more common than Falcon, just as Zuo Cheng said.

Zuo Cheng took one last look at the emerging industrial park before turning and walking toward the SUV parked by the roadside.

The next goal is to turn this production capacity into reality.