dhibooks Chapter 21 Restructuring of the Municipal Electronics Factory
Chapter 21 Restructuring of the Municipal Electronics Factory
To thank Wang Degui for helping him resolve Liu Yan's troublesome matter, Ling Yun hosted a banquet at a fairly upscale restaurant in Jinan. After several rounds of drinks and dishes, the private room was filled with smoke, and Wang Degui, his face flushed, became more talkative.
"Brother Ling, you're a man of great ability, I admire you!" Wang Degui patted his chest, spittle flying everywhere. "In the future, if you need anything in Jinan, just let me know!" He lowered his voice, with a hint of mystery, "Putting everything else aside, I do have some connections."
Ling Yun's heart skipped a beat, and he asked, "Brother Wang, you're well-informed. Do you know if there are any suitable factories nearby that produce electronic devices? I'd like to find a factory to manufacture computer parts."
Wang Degui squinted, picked up a piece of braised pork intestine with his chopsticks, chewed a few times, and mumbled, "The factory? Heh, you've really hit the nail on the head! I've heard, just heard... the municipal electronics factory might be going to make some changes!"
He put down his chopsticks. "It seems like there's some talk from above about some kind of 'restructuring' or 'focusing on the big players and letting go of the small ones.' This electronics factory has been struggling for years, and it's probably on that 'letting go of the small ones' list! The factory managers are probably in a real bind right now!"
Municipal electronics factory? Restructuring?
A glint flashed in Ling Yun's eyes—this was a crucial signal! In the mid-90s, "state-owned enterprise reform" was a period fraught with both immense opportunities and risks. Early planning could potentially allow companies to acquire highly valuable assets at minimal cost, especially factories currently overlooked but possessing significant technological potential.
After the banquet, Ling Yun did not go home immediately. He rode his bicycle and, relying on his memory and Wang Degui's vague directions, found the municipal electronics factory located on the outskirts of Jinan.
The rusted iron factory gate, with its red signboard once representing the glory of an era, now bears faded and peeling lettering, the red paint curled to reveal the gray-black undercoat. Many of the ceramic tiles on the gateposts have also crumbled, exposing the cement beneath.
Looking around, the factory area was desolate.
A cracked cement road leads deep into the factory, flanked by tall factory buildings. The red brick walls have turned a dark gray in many places and are covered in vines. Many windows are shattered, haphazardly patched with planks, cardboard, or even plastic sheeting, resembling unsightly patches. Withered yellow weeds grow on the roofs of some factory buildings, shivering in the early spring chill.
The entire factory area exuded an air of decay and decay.
Lingyun pushed his cart slowly through the dilapidated factory buildings, his heart heavy. Was this the place that once symbolized advanced productivity? Was this the "workplace" where countless workers had poured out their youth and sweat?
He walked through the factory area and arrived at the electronics factory's residential compound, which was separated from the factory area by only one wall.
The place had a more lived-in feel. The buildings were old-fashioned Soviet-style tenement buildings, with all sorts of clothes hanging on the balconies and clutter piled up in the stairwells. Several middle-aged women, wearing bulky cotton-padded coats, were sitting around a stone table at the entrance of the building, picking vegetables and chatting, their faces showing worry.
Lingyun stopped his bicycle, pretending to be stopping by for a rest, and moved closer to listen to their conversation.
"...My husband hasn't been paid for three months! How are we supposed to survive?" A middle-aged woman wearing a red and white checkered headscarf sighed.
"Who says otherwise!" Another middle-aged woman with short, permed hair slammed a vegetable leaf down her shoulder. "My husband wanders around the factory all day, never doing any work, and comes home sighing and complaining! I heard the factory owes the bank millions! How are they going to pay it back?"
"Several million?" a plump woman next to me exclaimed. "My God! Wouldn't we have to sell the factory to pay that back?"
"Sell? Who wants it!" The woman in the green headscarf curled her lip. "This lousy factory, the equipment is all outdated. Besides this piece of land, what else is valuable?"
"Those with connections have already started making moves," the perm-haired woman said mysteriously in a low voice. "Look at Old Zhang's eldest son, didn't he get transferred to the Second Radio Factory through connections? And Engineer Liu from the technical department, I heard he's found another job too... What are we left to do, those of us without connections?"
"Sigh, people's hearts have all fallen apart..." the plump woman concluded, her tone filled with helplessness and confusion.
Hearing this, Ling Yun basically understood what was going on. He deliberately struck up a conversation, "Aunties, is this the staff quarters of the electronics factory? The factory area looks quite large, but it seems like there aren't many people working here?"
Several middle-aged women immediately gave him a wary look.
The woman in the green headscarf sized him up: "Young man, you're not from our factory, are you? Why are you asking about this?"
Ling Yun smiled, revealing an innocent expression: "Auntie, I'm a student at Shandong University, majoring in economics. I want to conduct a social survey to understand the current situation of our state-owned enterprises."
Upon hearing that he was a college student conducting a social survey, the older women relaxed their guard considerably. The woman with the perm spoke quickly and bluntly: "Current situation? What kind of current situation could there be! No money, no work, just waiting...sigh!" She didn't say the word "bankruptcy," but the meaning was clear.
"The factory owes you several months' wages?" Ling Yun asked casually.
"That's right!" the plump woman immediately chimed in, "It's been almost four months! The higher-ups keep saying there's no money, and we're told to overcome the difficulties! Do you think these difficulties can be overcome with just words?"
"The banks must be pressing you hard too, right?" Ling Yun steered the conversation.
"Of course!" The woman in the headscarf looked around, her voice even lower. "I heard the bank manager even slammed his fist on the table! But the factory has no money in its accounts, and besides the dilapidated equipment, there's probably nothing left in the factory except rats. How are we going to pay back the money? Unless we sell this land!"
The workers had not received their wages for months, and were filled with anxiety. Those with connections began to seek their own way out.
The factory owes the bank a huge amount of money and is insolvent. Its only potential value may be this industrial land in a decent location.
The loss of key technical personnel, outdated equipment, and production stagnation have led to the current situation.
Ling Yun obtained the crucial information he wanted. He chatted with the older women for a few more minutes, expressed his sympathy, and then rode away on his bicycle.
On the way back, the complaints of the older women echoed in his mind, and the dilapidated factory area appeared before his eyes.
"Restructuring...insolvency...technology loss..." he muttered to himself.
This on-site investigation provided him with valuable firsthand information for his next move. However, he needed more detailed information to assess whether the electronics factory was worth his investment.