Chapter 250: Chapter 250: A discordant end
Just a few days after the City Tools Factory announced that the ERP system developed by Zhitong Company had successfully passed the acceptance inspection, Zhou Xingyu and his team worked overtime for a long time and finally completed the plan for the acquisition of the City Aluminium Products Factory.
Feng Yiping read the plan for two days and thought it was quite good.
The final conclusion of the preparatory team was that if their plan was successfully implemented, it would save the company a lot of time, they could easily recruit high-quality workers, and overall, it would save about one-fifth of the cost of building a new factory.
At the same time, as instructed by Vice Mayor Jiang, Lu Youfu also prepared a new plan and submitted it to the city's leading group for the restructuring of aluminium products.
Under the arrangement of Secretary Wu, Youjia's team quickly began negotiations with representatives from the Municipal Bureau of Economic and Trade, the Municipal Bureau of Finance, the Municipal Bureau of Light Industry and the aluminium products factory.
Youjia's proposal was to assume all the debts of the aluminium products factory, including the bank loans, which would cost 2.13 million. All equipment and factory buildings would be handed over to the city for 500,000, totalling 2.63 million. All the assets of the aluminium products factory would be acquired.
All 128 employees of the factory, including management, were retained, but all laid off and re-employed through competition. After the merger, the factory will invest 3 million yuan to renovate the plant and equipment. These 128 people are still unable to meet the demand for labour.
Although the participating government officials, Zhou Xinyu, had visited each one, there was never a sentimental moment at the negotiation table. From the beginning, the arguments were fierce.
The deputy director of the municipal finance bureau attending the meeting was the first to object: 'Fifty thousand yuan for the factory buildings and equipment? The few cars in the factory are worth more than half a million yuan, and there are also three workshops and the equipment inside, an office building and two residential buildings. With so many assets, they are only worth half a million yuan?'
'Our company's opinion is that the original three workshops will be completely demolished due to safety risks, and new standard light steel structure workshops, office buildings and residential buildings will be rebuilt in two years. Therefore, these buildings of the aluminium products factory are actually negative assets.
As for the three vehicles, the Pajero, which was purchased more than two years ago, can still be used. The other two vehicles are close to the end of their lives. Most of the equipment in the factory has already exceeded its service life, and maintenance and repair are very ineffective. It is lucky if one in ten can be saved,'
the deputy director of the Economic and Trade Bureau mentioned, 'What about the wages owed to the workers?'
Zhou Xinyu said decisively, 'We are not responsible for this!'
In fact, the 500,000 yuan handed over to the city included this purpose.
Deputy Director Liu of the Light Industry Bureau had been smoking and reading the proposal, but now he put out his cigarette and said with deep feeling, 'When I started working, I also interned at the aluminium products factory. At that time, the aluminium products factory was one of the city's most profitable enterprises, and it was able to pay hundreds of thousands of yuan in taxes to the city every year. It's just that it's encountered some setbacks in recent years. But I believe that difficulties are temporary, and our working comrades can overcome any difficulties.
Our comrades are not very adaptable to market changes, and it is necessary to introduce new forces. However, I don't think it is necessary to sell the whole thing. The other party's plan is to form a joint venture with the city, which I think is great! If the conditions in the Youjia plan are met, and they are given up to 50% of the shares in the aluminium products factory, then I and the comrades in the bureau fully agree.'
Zhou Xinyu immediately wanted to get up and leave. Looking across at Deputy Director Liu, who was using the podium as a lectern with great emotion, he felt nothing but disgust. He really underestimated the shamelessness of these officials.
Three days ago, when he visited the deputy director Liu with gifts, the latter still strongly approved of the plan. The praise was still ringing in his ears, and today he had completely taken the other side.
In his opinion, excluding the subsequent renovation investment, there was a good investment of nearly 3 million, and they only got a maximum of 50% of the equity in such a broken factory. The sales of the products also depended on Youjia, and at the same time there was a bunch of old women on their heads. Are they crazy?
Out of courtesy, he patiently restated his position, 'Whether it's the assets of the aluminium products factory, our capital contribution, or the plan for the workers' placement, we have done our utmost with the utmost sincerity. When we made this plan, we were very rigorous in our decision-making, and each point was based on meticulous data.
Our premise is that we will not accept a joint venture, and we also hope that both sides' opinions can stand the test of scrutiny.'
Gao Zhiyi was straightforward and added in a timely manner, 'In that case, it seems as if the aluminium products factory is booming and we are knocking on the door to ask for a stake.'
Hearing this, Deputy Director Liu gave him a cold look. Zhou Xinyu's words just now were relatively tactful, but Gao Zhiyi's words were equivalent to slapping him in the face.
Gao Zhiyi stared back without hesitation. Respect is mutual. If you want to manipulate others, and expect them to respect you, there is no such thing as a good deal.
The deputy director of the Economic and Trade Bureau, who was chairing the meeting, asked for the opinion of the Finance Bureau: 'What's your opinion?'
The deputy director of the Finance Bureau stated his position: 'I don't think this proposal is sincere enough. If possible, a joint venture would of course be best.'
The attitude of the Municipal Economic and Trade Bureau was relatively neutral, but speaking from the personal feelings of the deputy director, of course he also hoped that a joint venture would be good.
Zhou Xinyu did not expect that according to Feng Yiping's main theme of not taking advantage of the city, such a plan was actually opposed. 'Let me reiterate once again, our original plan was to build a new factory. We have already conducted inspections in the provincial capital and several surrounding cities. It was at the suggestion of the municipal government and in the spirit of win-win cooperation that we proposed such a plan. Now it seems that the two sides have too many differences. I don't think there is any need to continue the negotiations for the time being.'
The negotiations ended in discord. Zhou Xinyu was no longer angry at this point, but just a little depressed. Feng Yiping had to transform into a political commissar and comfort the middle-aged uncle, 'It's fine, this way it's even more convenient. Just build a factory directly in the province, and the people in charge of investment promotion will run after you, how great!'
'I don't mean anything by it. I just feel that they all claim to be thinking about the collective good and the interests of the workers, but they refuse to accept the proposal that is best for the collective and the workers.
Liu, the deputy director of the Light Industry Bureau, even spoke off the cuff at such an occasion, which was completely unprofessional. I suspect that his main objective was to disrupt the merger.
You were right to be concerned. A merger like this should really be avoided if possible. It's a pity about all the work we've done over such a long period of time.'
'President Zhou, it's still too early to say it's a pity. Maybe there will be a turn for the better next time. You adjust the plan a little: the workers will still be responsible for receiving the factory, but only the external debts of the aluminium products factory, and the loans owed to the bank will be paid off in two years.'
In fact, the most depressed person about today's result should not be Zhou Xinyu, but probably Mayor Fang!