Feng Yu told Fu Guangzheng about the acquisition of those small machinery factories, and Fu Guangzheng agreed.
He had seen Bing City Machinery Company's financial reports and knew that the components' cost accounted for a large portion of the total cost. Many of the components' technologies were not difficult and did not require any special materials or special forging methods. But it required a lot of manpower.
After Bing City Machinery Company acquired those small factories, they will be able to build a good relationship with the Provincial Government and also get some benefits. Furthermore, Tai Hua Supermarket will be able to get two plots of land. They will be able to build two commercial buildings and dominate the Bing City market. In the future, even Walmart, Carrefour, etc., will not be a match for Tai Hua Supermarket.
Monopolizing the whole of China's supermarkets was only a dream. Tai Hua Supermarket Corporation does not have enough funds, let alone choosing the location of the factory. Although Tai Hua Supermarket had good sales last year and had high cash flow, they could still get loans from the banks. But Tai Hua Supermarket does not dare to let Tai Hua Supermarket monopolize the whole of China.
If there were 8 to 10 hypermarkets losing money, it would not only be a direct financial loss, but it would also affect the brand. The consumers and customers will lose their confidence in Tai Hua Supermarket.
That was why Tai Hua Supermarket's target for the next few years was to monopolize the second tier cities and above. This way, Carrefour and Walmart will not be able to find good locations to enter the Hua Xia market.
Feng Yu's actions had helped Tai Hua Supermarket gain control of the Bing City market. Fu Guangzheng also knew that he could use other forms of cooperation in exchange for the support of the local government.
As long as it was a win-win situation, the other party would not reject.
After Feng Yu left, Xu Changyou called for a meeting to discuss the feasibility of this plan. Feng Yu's priority was to complete the acquisition of the Machinery Company.
After acquiring those small factories, Bing City Machinery Company's employee count will increase again. The total number of employees will be more than 20,000, and it will become the machinery company with the highest number of employees in Hua Xia.
Other state-owned machinery manufacturing companies like First Automobile Works, SAIC Automobile Works, First Automobile Works, First Automobile Works, and First Automobile Works only have slightly more than 10,000 employees. From this alone, Bing City Machinery Company is China's biggest machinery manufacturing company.
Just this alone was enough for Xu Changyou to claim credit from the higher-ups. Of course, all these must be completed and there must be no failures.
The next day, Xu Changyou called for a meeting for the whole province's machinery industry. He called for the heads of the various cities, machinery factories, tractor factories, etc., to announce the Provincial Government's decision.
When Xu Changyou proposed this plan yesterday, there were many objections from the Provincial Government. They felt this will be turning the state-owned enterprises into private companies.
Especially, many machinery factories were still making profits. They can be adjusted slightly. Why should they sell these factories to Bing. Now, the largest shareholder was a private company.
The state-owned enterprise would become a private enterprise after the restructuring. This was a problem that the higher-ups had been discussing. Bing City will be turning state-owned enterprises into private companies after the restructuring.
Xu Changyou retorted with a question. How could it be lost? Using Bing City's Machinery Company as an example. If the other shareholders did not invest in the company, how could the company reach its current scale? Bing City's Machinery factory's Bing Machinery Company's profits. Bing City's annual taxes. Factory's profits of Bing Bing City's Hua Factory's make. is to Machinery.
Bing City's annual taxes are several times more than Bing City's Machinery Factory's profits. Many workers are also supported by these factories. Furthermore, although the City's shares had decreased, the profits from these shares were much higher than before.
The most important question was, how was the social insurance implemented by the country going? So many companies cannot pay up. Who is going to be responsible for this?
Selling those companies is not the same as selling their workers. Bing City Machinery Company is also not a private company. It is a joint venture, and the government encourages joint ventures. This way, those companies will have the money to pay the social insurance, and the companies will develop faster. The workers will earn more. What's wrong with this?
Every worker is the owner of the country. What's wrong with selling those companies to let the workers have a better life and a better future?
When this issue of social insurance was raised, the rest kept quiet. Xu Changyou's solution can really solve these companies' social insurance problems.
If these companies were to pay the social insurance, they can ask other companies to also pay the social insurance. Why can't their factories pay the social insurance?
Now, many companies had formed an alliance to stop their workers from paying the social insurance. They want to hand their workers over to the government for their retirement benefits and do not want to pay the social insurance. It is not easy to work in the local government.
This way, they can break this alliance, and the proportion of the social insurance funds collected this year will increase. This will also be a political achievement for the local government. It was a political achievement to do a good job in family planning, not to mention this kind of job that collected money.
Also, Xu Changyou is more domineering. He overruled the objections and wants this to be implemented as soon as possible. Also, the Provincial Government must come up with a proposal on how to integrate the province's resources and set up a few competitive companies to boost the province's economy.
No. 2 is unhappy. Xu Changyou is interfering with his work. But there is nothing he can do. After all, Xu Changyou is the head of Longjiang Province! Also, No. 2 had never thought of this solution before.
No one objected to the merger of the pharmaceutical factories. After all, Bing City's State-owned Assets Supervision and Administration Commission is the major shareholder of Bing City Pharmaceutical Enterprise.
But no one expected Xu Changyou to implement this plan in such a hurry. The next day, he called everyone for a meeting to announce the Provincial Government's decision.
The leaders of the various cities and factories strongly objected. The City Government felt that they will have lesser taxes, and the factories' leaders are worried about their positions. If the factories are acquired, can they still be the leaders of the factories? Can they still have the final say in the factories?
"What's wrong? You all are still objecting after I mentioned so many benefits? Are you all objecting for the sake of objecting? I had also mentioned the taxes collected by the various regions clearly. The profits of the factories will be higher. Even if the taxes collected are reduced, it will only be for one year. But the amount will still be higher than before. Furthermore, the income of the workers will increase, and the problem of social security can be solved. Each region can also get a considerable sum of money to invest in the transformation of other enterprises. What's wrong with that? "Xu Changyou slammed the table and questioned.
Xu Changyou knew that selling off those factories will affect the local governments' profits. After all, those companies will also give the various regions some profits every year. Some of the government's accounts are not clear, and they can use those companies to settle the accounts.
But if those factories are merged into Bing City Machinery Company, it will be beneficial to the whole province. Even if he cannot be promoted, he must get this done. This way, he will not let down the people of the province.
"Let me tell you all one last thing. This is not a discussion with you all. This is an order. The Provincial Government had discussed with Bing City Machinery Company, and the documents will be sent to the various regions' governments. Don't blame me for punishing those who drag us down!"
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