Volume Three, Section 43, State-owned Enterprises (1)
Sha Zhengyang also understood this issue. The most serious situation is nothing more than three electronic and electrical enterprises, radio plants, fan plants, and electrical appliance plants.
The radio plant mainly produces radio and recorders, and was once very popular. The Longteng brand recorder produced in the 1980s once dominated Hanchuan, and was comparable to the Yanwu recorder in Yancheng, Suzhou Province, which was once popular in the markets of Henan, Hubei and Shaanxi Province.
However, its decline comes faster than Yanwu, lacks R&D capabilities, or does not pay attention to R&D at all, and only cares about the hustle and bustle of glory. Once the market turns cold, it will be helpless and fall into the abyss in recent years.
The number of radio plant workers is as high as more than 3,000, which is now a major hidden danger to the Wanzhou Municipal Party Committee and Municipal Government.
Another major hidden danger is naturally Wanzhou Electrical Appliance Factory. Wanzhou Electrical Appliance Factory was once popular in the 1980s, mainly producing washing machines. Although the rose washing machines produced cannot be compared with the popular white chrysanthemum, Clivia, and Narcissus at that time, it is still well-known in the markets of Han, Henan, Hubei and Shaanxi provinces, so the benefits were also quite good in the 1980s, and the highest number of employees in the enterprise exceeded 4,000.
But this is also a flash in the pan. With the power of the South and the strong rise of brands such as Xiao Duckling and Little Swan, Wanzhou Electrical Appliance Factory, which lacks technical support to improve grades and improvements, and also has a long-term approach in marketing, quickly defeated.
In addition, the product is single, the technical content is low, and the management is poor. There are only single-cylinder and double-cylinder washing machines, which can only be maintained in the local market. However, the cost pressure brought by the huge employee scale has made the company breathless.
Sha Zhengyang even had some impression that in his previous life, it should have been in 1998 or 1999, the Wanzhou Electrical Appliance Factory and the Wanzhou Radio Plant went bankrupt one after another, involving thousands of employees and hundreds of employees who went to the provincial government to petition, causing great shock and storm.
In comparison, although the situation in Wanzhou electric fan factory is not good, the company is small in scale, with only five or six hundred employees. At the same time, electric fans are also a seasonal "firm demand". In the market that is sensitive to prices and requires not too high brands, styles and functions in rural areas, although the market for Kirin brand electric fans is shrinking, it is not impossible to sell at once, and can survive.
However, judging from the current market situation, as electric fan companies in Guangdong and Jiangsu and Zhejiang are flocking to the market, the market competition is becoming more and more fierce. If Wanzhou electric fan factory cannot come up with the corresponding strategy, it is highly likely that it will be a desperate situation within two or three years.
Sha Zhengyang has no impression of the future outcome of Wanzhou Electric Fan Factory, because this company is much smaller than Wanzhou Electric Appliance Factory and Wanzhou Radio Factory. It must have been quietly buried in one of the countless state-owned enterprises that have gone bankrupt and closed down.
"Secretary Lin, I think it is better to have a problem of state-owned enterprise reform than to be late. The more we delay it, the greater the debt, the greater the government's losses, and the greater the difficulty of reform. Judging from the current national situation, the central government's spirit of focusing on the big and letting go of the small is forming. I estimate that in the next three to five years, the reform of state-owned enterprise reform will usher in a tough battle. At that time, large-scale layoffs of state-owned enterprises will definitely have an impact on society. The Party Committee and the government must be mentally prepared in dealing with large-scale layoffs and unemployment of employees in enterprises, and more fully prepared for financial resources."
Sha Zhengyang said it was certain.
Lin Chunming often discusses this situation with Sha Zhengyang. According to various news he learned, Sha Zhengyang's judgment is undoubtedly quite accurate, but accuracy does not mean that the problem can be solved. Among the major state-owned enterprises in Wanzhou City, except for Wanzhou Pharmaceutical Factory, which is not as good as the alcohol factory, and the other four enterprises are facing survival problems, involving nearly 10,000 employees. This is not considered that a large number of state-owned enterprises under the district and county are facing the same problems.
And he also got a piece of news that he didn't know whether it was good or bad, that was, some third-tier military-industry enterprises from the Ministry of Ordnance Industry and the Provincial National Defense Science and Technology Commission would also be handed over to the local area.
In accordance with the spirit and requirements of the central government, in order to solve the worries of these employees and their families who have made great contributions to the construction of the third line for a long time and facilitate their lives, this group of enterprises that were originally built in the valleys of various counties must consider relocation to their prefecture-level cities.
This is a political task. You must accept it even if you accept it. You must accept it even if you don’t accept it, and you must also complete it with quality and quantity.
Although the central and provincial governments will provide certain guarantees and support for relocation funds, seeing the current difficulties of these municipal enterprises, Lin Chunming had to worry that once these military-industrial enterprises are relocated to Wanzhou and handed over to Wanzhou City for management, if their military-to-civilian progress is not going well, they will probably become a big burden in Wanzhou City like those municipal enterprises.
Judging from the current situation, it is quite difficult to convert military to civilians, especially to integrate into the market economy environment, which makes him a little anxious.
The industrial enterprises at the municipal and county levels of Wanzhou are in poor condition. If these batches of military-industrial enterprises are handed over to the city, it will increase the pressure and burden on the city.
"Zhengyang, these are all problems that our party committee and government have to face in the future. You are right, it is better to solve them sooner than later. The problem is how to break the deadlock, which is not difficult." Lin Chunming stroked his jaw, "Restructuring is easy to do and difficult. Introduce external strategic investors, internal equity reforms, or sell them directly? Each one has problems and difficulties, and there will be a lot of new problems, especially at the legal and policy levels. They are very sensitive. If they are solved well, they should be. If they are not solved well, they are sinners."
"But we have to face it all the time." Sha Zhengyang laughed, "Secretary Lin, if you cannot leave Wanzhou within two or three years, then the reform of state-owned enterprises must be faced, and it cannot be delayed, so it can only be sooner or later."
"Do you have any ideas?" Lin Chunming felt a little relaxed when he heard Sha Zhengyang say this. This guy always brings him many unexpected surprises, and he is looking forward to it.
"Didn't you explain some tasks to me about economic development? The reform of state-owned enterprises is the most important thing that cannot be avoided, and it is as important as attracting investment." Sha Zhengyang nodded without being modest: "I consider this issue. As you said, it requires a multi-pronged approach. Reform is necessary. Taking these three electronic and electrical enterprises as an example, if they do not reorganize and change their operating mode, bankruptcy will be a matter of time sooner or later. Reform is not a panacea to cure all diseases. It also requires a qualified or even excellent management to find a path suitable for the development of this enterprise."
"You continue to say that I feel like you have thought about these three companies specifically. Do you have any new ideas?" Lin Chunming was quite moved.
Sha Zhengyang Energy transformed a small town winery in Hongqi Winery into a large enterprise with sales revenue of over 300 million in two years. It may be impossible to replicate such a miracle in Wanzhou. Of course, he is reluctant to let Sha Zhengyang go directly to the company, but if Sha Zhengyang can come up with a suitable method and recommend the right candidate, this is the best.
"Well, I have considered that, like electrical appliance factories, the main products are the production of washing machines, but their production lines are aging, the cost remains high, and the technology is backward. They are seriously unsuitable for the current development trend in the development of new products and new technologies. I heard that Japan's Sanyo is looking for a suitable joint venture partner in China, and I think it might as well give it a try."
Sha Zhengyang has an impression that Sanyo is not very popular in Japan, especially its transfer on the technology production line and its OEM model have been fiercely attacked by other peers, but Sanyo does not change its original intention and remains the same.
Hefei Sanyang Rongshida should have been a joint venture in the past two years. Wanzhou Electrical Appliances Factory mainly produces washing machines. To be honest, it is not easy to survive until now. Sha Zhengyang has no good idea, so he can only take this path and try it.
As long as the company starts in the future, it is not impossible to acquire Sanyo in reverse. In my memory, Sanyo was slowly acquired in such a way more than 20 years later.
"Oh? Japanese Sanyo is looking for joint venture partners in China?" Lin Chunming was very excited.
This era is also a good news worthy of praise for being able to jointly invest with Japan's home appliance industry, but if you want to join the Sanyo, it may also depend on whether you are qualified or not.
Nowadays, several large appliance companies in Japan are almost monopolistic in the domestic market of China. Hitachi, Panasonic, Sharp, Sanyo, Toshiba, Sony, Fujitsu, and Mitsubishi, each one is more powerful than the other, and is far less timid than it is more than twenty years later.
And to be honest, Japanese companies can now act as teachers of these domestic companies, whether in brand, quality or management, especially for state-owned enterprises that are used to eating big pot rice, everyone thinks it is a panacea, and one dose will be effective immediately.
"As far as I understand, Japanese companies are entering the Chinese market in large numbers, which is far more active than European and American companies. We can consider working hard in this regard."
Sha Zhengyang didn't dare to make a promise. He was not sure about the real situation of Wanzhou Electrical Appliance Factory. He originally planned to follow Lin Chunming to find out when he was conducting research, but unexpectedly, Lin Chunming couldn't sit still now.
"Then Zhengyang, please worry more about this matter. If you can really achieve a joint venture and then solve the dilemma, it will be a big problem for the municipal party committee and government." Lin Chunming sighed and couldn't help but smile again: "Can you give me some good news? During this period, I was in a bad mood by all kinds of bad news and situations."
Chapter completed!