Chapter 241: Acquiring Patents
November 11, 1962 — Taiwan
"Mr. Wei, welcome," Wang Yongqing personally greeted the guest from Hong Kong at the factory gate. As a key representative of Changxing and shareholder of Formosa Plastics, this visit was no small matter.
Wei Zetao stepped forward and shook his hand. "Mr. Wang, it's a pleasure."
"Please, come inside. You can take a look at our new plant while you're here," Wang said politely.
"Gladly," Wei replied.
Though he had come for important business, a quick tour of the factory—especially one backed by his own boss—was well worth the time.
Wang led Wei through the plastic pellet production facility. Wei took the opportunity to observe the entire process, gaining a deeper understanding of how plastic was produced.
Plastic manufacturing required large amounts of chemical raw materials and petroleum derivatives. Transporting such hazardous chemicals to Hong Kong—where no supporting industry existed—would be far too risky. It was far more efficient to keep production based in Taiwan and simply ship the safe, finished plastic pellets to Hong Kong.
After the factory tour, the two men sat down in the administrative office. Wang personally brewed tea for Wei. "Please enjoy."
"Thank you," Wei replied.
Wang set his cup down. "Mr. Wei, there's something I'd like you to relay to Mr. Yang. Formosa Plastics will soon be rebranded as the Formosa Plastics Group."
"A name change?" Wei raised an eyebrow. "You mean 'Taiwan Plastics Group'?"
Wang nodded. "Yes. Formosa is now the only large-scale plastic supplier in Taiwan. The higher-ups suggested I rebrand, and I think it makes sense. The name 'Formosa' doesn't work well for branding and global recognition."
"No problem. I'll inform Mr. Yang. I doubt there will be any objections," Wei said.
"Glad to hear it." Wang then asked, "So is your visit mainly about scaling up production?"
The demand for plastic raw materials in Hong Kong had greatly exceeded Wang's original projections. The new factory had only just been completed, and it was already falling behind. A good problem to have—but expansion required capital.
Then again, even if he had anticipated the surge, banks wouldn't have supported such a large investment without firm market demand.
"Yes, that's correct," Wei said. "Changxing Trading has already signed long-term supply agreements with several plastic toy and household goods manufacturers in Hong Kong. Including our own needs, your current production won't be enough. Mr. Yang and I discussed it—we're ready to lend capital directly to Formosa, now Formosa Plastics Group. The exact amount can be negotiated."
"You're serious? A direct loan?" Wang was visibly surprised. He had expected Changxing to join him in applying for a bank loan—not to front the money themselves.
Wei confirmed, "Yes. Changxing Industrial is ready to provide funding directly. The priority is to build the plant immediately and meet market demand in Hong Kong. If we go through the banks, it could take one or two months just to get approvals for tens of thousands of U.S. dollars. That's too slow."
Changxing's Kwun Tong Industrial Park was nearing completion and preparing to ramp up production. The last thing they could afford was a raw materials bottleneck.
More importantly, Changxing wasn't alone. The park was expected to house many small-to-medium plastics companies. This was part of a larger strategy: to control Hong Kong's plastic supply chain—and that strategy relied on Formosa's production capacity.
"I see. I've been keeping an eye on the situation in Hong Kong," Wang said. "If that's the case, I'll immediately send people to Japan to look at larger-scale production lines. As for land, getting a free plot from the government here in Taiwan shouldn't be a problem."
"Haha, good," Wei laughed. "It really is easier to build factories here. Free land? That's just a dream in Hong Kong."
"Well, different places, different policies," Wang said with a smile. "Hong Kong has limited land. Much of it is mountainous. The flatlands are needed for both urban development and industry. Of course land is scarce."
"Exactly." Wei nodded. He understood the challenges well.
"But," Wang added, "a few decades from now, if Hong Kong's economy continues to grow, the land your factories sit on will be worth a fortune. That's something I can't compete with."
"Mr. Wang, are you also interested in real estate?" Wei asked with a grin.
"Of course. Who isn't? I just haven't invested much yet," Wang replied. "Whether it's real estate or industry, we're all following the path already taken by the West. Even here, industrial land is mostly granted in remote areas, because the government knows Taiwan will follow the same urbanization path eventually."
"True," Wei said thoughtfully.
Wang continued, "I've studied the commercial development history of Western nations for years. That's how I was confident enough to go all-in on plastics. I knew it would become a critical industry for Taiwan and neighboring countries."
"Incredible," Wei said, giving him a thumbs-up. "No wonder you're so successful. If you were based in Hong Kong, people would be calling you the Plastic King."
"Same as Mr. Yang—the Post-it King?" Wang asked, clearly intrigued.
Wei nodded. "Exactly. There are many industrial tycoons in Hong Kong, but none match Mr. Yang in scale and speed."
"That's true," Wang said with admiration. "If I hadn't seen it with my own eyes, I wouldn't believe it. In just a few years, he's achieved so much. Remarkable."
"It's been an honor to work with him," Wei said sincerely. For a professional manager like himself, working under such a visionary entrepreneur was the peak of his career.
After sipping some tea, Wang asked, "Mr. Wei, aside from the expansion, is there anything else?"
"Yes, actually," Wei said. "Are you familiar with polyethylene?"
"Of course. It's a common material," Wang replied, sharp as ever. "Are you planning to produce polyethylene yourselves?"
Wei shook his head. "Not us. We're hoping you can. Is it possible?"
Wang thought for a moment. "We've never made it, but I'll have my team study it. If the patent has expired, and I believe it has, then as long as we have the equipment, we can make it. The challenge lies in the technology and market readiness."
"The market is definitely there," Wei said. "We'll be placing large orders ourselves. And beyond us, polyethylene is a widely used industrial material across Taiwan, Hong Kong, and the rest of Asia."
"Understood," Wang nodded. "May I ask what you intend to use it for?"
"I'm afraid that's a commercial secret for now," Wei replied.
They still hadn't confirmed whether plastic bags made from polyethylene were already patented. Even within Changxing, fewer than five people knew about the plan.
"That's fair," Wang said, unfazed. "I'll look into it on my side."
"Alright then, I'll count on you, Mr. Wang." Wei Zetao smiled. "As for the next steps in our collaboration, the team I brought with me will soon begin negotiating with your people. Mr. Yang's intention is to push forward quickly and begin construction on a new facility as soon as possible."
"No problem," Wang Yongqing nodded. "I'll also start looking into the polyethylene matter right away."
After spending several days in Taiwan, Wei Zetao returned to Hong Kong. Upon his return, he also received an update from Zhang Weida, Changxing Group's legal counsel, regarding the matter that had been on Yang Wendong's mind.
November 16th, Wei arrived at Yang's office and began by reporting on the developments in Taiwan.
"Alright, proceed with the investment immediately," Yang Wendong instructed. "Let's make this one big—scale it up. Even if the production exceeds Hong Kong's needs, Wang Yongqing will be able to sell to other markets. I believe he has the ability to handle that."
Wang Yongqing, future king of plastics in Asia, would one day control half the continent's supply of plastic. His marketing ability was indisputable.
Especially in this era, demand for cheap plastics across Asia was skyrocketing. Western industrial giants were exploiting developing nations through the so-called "scissors effect," profiting massively from the manufacturing gap.
Local companies that managed to rise in this environment did so by undercutting imports and replacing foreign-made products with domestic alternatives—just like China's home appliance and automobile sectors in later years.
"Understood. I'll coordinate with Mr. Wang as soon as possible," Wei said. "Also, we've confirmed information regarding polyethylene plastic bags. A Swedish company has registered quite a few related patents."
"A Swedish company?" Yang frowned. That was unfortunate. If the patents had been in his hands, it wouldn't have made him a billionaire—but it could have created thousands of jobs. "What do you mean by 'quite a few' patents?"
Wei explained, "Plastic bag patents aren't like traditional 'concept' patents. Since the idea of a 'bag' is too generic, you can't patent that concept. Unless it's for a specific shape or dimension, which is easy to bypass by simply changing the measurements.
What Celloplast—the Swedish company—did was patent the material compositions. That's where the protection lies. According to Mr. Zhang's research, Celloplast began researching lightweight, low-cost bags in the 1950s. After years of experimentation, they finally made progress—but their results weren't perfect. They've patented at least ten different types of polyethylene-based bag materials, all with varying formulas."
"So the technical challenge is pretty high," Yang muttered. He had underestimated the difficulty of making plastic bags.
Wei nodded. "Exactly. Celloplast wanted to make a high-quality plastic bag, but they've never really nailed the formula. That's likely why they still haven't officially brought anything to market."
"Interesting…" Yang thought for a moment. "Alright, send someone to talk to them. Find out the scale of their company. See if they're open to investment—or if we can purchase the patents for the variants they've already registered."
It was good to pursue perfection, but chasing it too far often killed commercial value.
Yang wasn't looking for the perfect plastic bag of the 21st century. He just needed something better than a bamboo basket or a flimsy paper bag—something functional enough to sell. Once the product entered the market, it could be improved gradually.
Wei nodded. "I'll get someone on it right away."
As one of the largest Chinese conglomerates in Hong Kong, Changxing Group had no shortage of English-speaking talent. Some employees had even studied in Europe or Sweden.
One week later:
Yang Wendong returned to the Kwun Tong Industrial Park with Su Yiyi. From now on, all plastic-related production—including adhesive hooks and flypaper—would be centralized here.
The park would officially become the new headquarters for Changxing's manufacturing arm.
While Post-it notes remained a flagship product, they were stable and mature. They didn't require much ongoing attention—just steady production.
In contrast, plastic products were numerous, technically complex, and prone to quality issues. They were now the company's next big priority.
Upon entering his office, Yang was greeted by Wei Zetao, who was already waiting with several plastic bags in hand.
"Mr. Yang, Madam Yang," Wei greeted. "Here are samples our colleague Xiao Li brought back from Sweden, from Celloplast. Please take a look."
Since this was a project the boss cared about deeply, they had pulled out all the stops—establishing contact with Celloplast, paying a fee to acquire samples, and shipping them back to Hong Kong via express air freight.
"You got actual samples this fast?" Yang said, surprised, taking the bags in hand. "I thought they hadn't even released anything publicly yet."
Wei explained, "They haven't. But they've been distributing them in small batches around their company's premises—likely part of early-stage market testing. I suspect they're waiting on customer feedback before adjusting the material further. And Swedish consumers seem to prefer paper bags, which may be why these haven't seen mass adoption."
"Hm." Yang rubbed the surface of the bags.
His first impression? The texture was off. Some bags were too soft, others too stiff.
Wei continued, "The soft ones tear easily and can't handle any real weight. The stiff ones are durable enough—but very rough to the touch. I tested one myself. It actually hurt my hand."
Yang asked, "The stiffer ones—they're not pure polyethylene, are they?"
"No," Wei replied. "Polyethylene is waxy-soft. That's why it's used mostly for sealing and insulation. Pure polyethylene bags would be even flimsier than the softest one here.
Celloplast has been trying to mix polyethylene with other materials, hoping to find the perfect combination. But after several years, they still haven't found the ideal formula."
"Composite materials—that's extremely difficult," Yang nodded.
If it were easy, someone would have done it already. Humanity had been making and using bags for millennia. Thin plastic films had existed for decades. The idea of a plastic bag wasn't revolutionary—but making one that was durable, flexible, light, and cheap? That was a chemical engineering challenge.
Apparently, Celloplast had been trying for years. They'd had the idea. They'd identified polyethylene as a candidate. But they still hadn't produced a commercially viable product.
In his past life, Yang remembered that many "common" items were the result of years—even decades—of research. Their simplicity was deceptive. Only mass production had brought the costs low enough for everyday use.
Wei added, "Westerners are picky. They might find this stiff version too uncomfortable. But I think in Asia, it'll be a different story."
"I agree," Yang said, selecting the stiffest bag from the batch. "This one should be good enough. Have Xiao Li speak with Celloplast again. See if we can purchase the patent for this material formula."
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