Chapter Seventy-Nine: Eating Dumplings

  Su Cheng invited Chen Zunian and middle-aged Liu Xiaolong to go to Dongying together and visit the Great China Enterprise.

  The two of them gladly agreed and made an appointment for later, then went to look for other leaders in the factory.

  The Ministry of Petroleum doesn't really like Jinan Power Machinery Factory, but it's also not willing to let go of it. After all, the future is uncertain, and you need a spare tire just in case.

  In fact, this spare tire was indeed used two or three years later. However, it was a pity for the more than 2,000 workers and their families who suffered in life for four to five months, wasting time and damaging their bodies.

  Su Cheng returned to the hotel and told Chen Liang about what happened at the power plant factory. Chen Liang was shocked and exclaimed, "Director Su, this is a huge trap, I dare not jump into it."

  Xiao Yang also nodded heavily and said, "The diesel engine factory has been insolvent for a long time. Their factory is old, with many retired workers, now there are probably 300 or 400 people, just the medical expenses every month make the leaders headache."

  Su Cheng shook his head slightly and said, "Retirees are a burden, but the diesel engine factory is a quality asset."

  "Nowadays, aren't there enough good assets? Enterprises like our Victory Machinery Factory that are still in production and even making a small profit can be found all over China. They're all waiting to be restructured. Take the enterprises under our Victory Oil Field for example - the oil pipe factory, the auto repair factory, the oil pump factory... Shandong Province has even more bankrupt state-owned enterprises. I dare say, Director Su, if you guarantee to submit one million yuan in taxes and profits to your superiors each year, all of these are yours for the taking. Take the auto repair factory, for example - it made over a million yuan in foreign exchange last year. If you take it over, it's like getting something for nothing."

  "So, I'm buying the Victory Machinery Factory. Did I pay too much?" Su Cheng said with a smile, stroking his chin.

  Chen Liang chuckled and said, "Hey, the oil field is giving you the machinery factory for free, isn't that enough? Moreover, our factory still has a contract for 200,000 sets of oil extraction machines. What does the diesel engine factory have? Nowadays, the oil field only buys complete foreign equipment, and domestic diesel engines are not wanted by anyone."

  "But when the time comes that people want domestic diesel engines, Jinan Power Machinery Factory, 100 million, 1 billion can't even buy it." Su Cheng remembers history, he points to the sky and says: "Our country cannot always be without domestic diesel engines."

  "There's 100 million. Let's build our own diesel engine factory."

  "This kind of heavy industry factory can't be built in just a few years." Su Cheng shook his head.

  "It's not worth putting money in." Chen Liang advised for the last time: "The diesel engine factory has 2,500 people, with a monthly salary of at least 1.5 million. The wages owed before also need to be made up. Even if the bank waives the interest, it would still be 18 million, and production needs to be resumed, and key machines need to be replaced..."

  "It's nothing, Old Chen. It's just a matter of making more or less money. If it really doesn't work out, let's first give us the production accelerator." Su Cheng thought to himself, wait until 20 years later and see if 1.8 million can dig up four senior engineers.

  "Director Su, you bought the diesel engine factory. What aspect of it caught your eye?" Qin Yun, standing beside Xiao Pang, suddenly said.

  "This... a team of 2,500 technicians. Dozens of senior engineers, and a well-trained team..." Su Cheng hesitated for a moment. Without mentioning the land.

  "Just a person?" Qin Yun looked at Su Cheng with a curious expression and said, "Anyway, the diesel engine factory is no longer wanted by anyone. You can recruit people to Dahua Industry with the same treatment. No one will stay behind, right?"

  Su Cheng was taken aback for a moment.

  "In my opinion, the sales team of the diesel engine factory is still very valuable. They can sell diesel engines to Xinjiang, which means they have some ability. We can recruit them as a whole and bring over the sales channels."

  "So you're saying they only recruit people, but don't want a factory?"

  "It's only natural that Qin Yun said: 'Their equipment has not been updated for 20 years, and selling it as scrap metal is about right. With this way of recruiting, although it seems like the cost is a bit high, such as giving some resettlement allowance or raising it to Dahua's treatment, but in fact, compensating 2500 employees' annual salary is not as good as giving resettlement allowance to the needed 1000 employees, and they will be grateful. And those medical expenses and retirees are simply a bottomless pit...'

  She rested her chin, calculated silently for a moment, and said: "We only need technical personnel and engineers. General workers can be one of the conditions, such as senior engineers who can bring a general worker over. If we recruit all valuable workers, I estimate 500,000 yuan will be enough. Rebuilding a diesel engine factory might cost more, but it's unnecessary. We just need to add a workshop within Dahua Industry. The initial production capacity can be sold for between 1 million and 4 million. Later on, we'll buy what we need. I think Director Su wants to establish a long-term foothold, but given the current economic situation, it will take China five to fifteen years to enter a period of massive demand for diesel engines. By then, Jinan Power Machinery Factory's current production line will definitely be outdated. So, their production line has no value."

  Su Cheng looked at Qin Yun with an unbelievable gaze, the trick she mentioned was almost the most profitable merger routine in this era, although it was a bit damaging, but everyone did it that way.

  This approach is used more and more as the state-owned enterprise reform progresses. Therefore, in the early stage of reform, there were many winners among state-owned enterprises, while in the later stage, the equipment was 10 years older, employees were 10 years older, and they had been out of the market for another 10 years... Most of them took the route of laying off employees, selling equipment as scrap iron, and building commercial buildings on the land.

  Those who could think of this kind of merger in the 1980s were all clever and ruthless figures.

  Xiao Pang is in trouble - Su Cheng thought with schadenfreude, but said to Qin Yun: "Your method is a good financial method, but it's not a way to run an enterprise, and even less so for heavy industry."

  Qin Yun asked discontentedly: "Why?"

  "Because heavy industry is an industry with a long return cycle, but a high average rate of return. One must be patient." Su Cheng said in a low voice: "Using your method, it's true that you can gain a lot of benefits in the short term, but this enterprise will basically be destroyed, lacking cohesion, with chaotic internal thinking, like a meatball without sinew."

  Qin Yun still didn't think so, Su Cheng changed his tone and said: "Let's just talk about orders. For a company like Jinan Power Machinery Factory, its sales objects are mainly the government and other large state-owned enterprises, right? Our image is good, it will be easier to do business in the future, and public relations expenses will be low. If our image is bad, it will be difficult to do business, and public relations expenses will be high. Under the same conditions, we still have to give way to other companies. When that happens, if you want to reverse the public impression again, isn't it going to cost money? At least, leaving a good impression on leaders is not wrong, right?"

  Qin Yun thought seriously for a moment. Finally, he raised his head and said: "Although what you said is not wrong, but 10 years later, no one can be certain. At that time, you can completely build a new brand. At least you won't lose out. You give up the benefits in front of you for the sake of 10 years later, it's not short-sighted, but also not correct."

  Su Cheng smiled with a sly mouth. Among all the people present, only he dared to say: "Ten years later, I will make it clear."

  He spread out his hands and smiled: "Holding on to the factory is holding on to the team. It's like an army, once it's dispersed, it becomes a scattered crowd. Just for the sake of making money. There are many ways to do it, I have the energy to toss around machinery factories. I'd rather study another oil well."

  Xiao Pang finally woke up from his daze and excitedly asked: "Master, have you decided which oil well to buy?"

  "Look at how anxious you are, if you're bored, why not invest in a diesel engine factory instead."

  "I'll invest 30%." Xiao Pang didn't even ask how much money was needed.

  "Alright, let's see in 10 years, it won't be worse than buying stocks." Su Cheng wasn't just talking nonsense, the returns on doing real business may be slow, but in the long run, they're not small.

  Finance is ultimately a gamble, there are no permanent winners, especially when acting as the house, even if one knows the overall economic trend, it's still possible to be killed in the short term.

  Qin Yun withdrew her intimidating posture and snuggled back into Xiao Pang's arms.

  Su Cheng thought to himself, although they were completely different in appearance, Qin Shihui and his daughter were indeed a pair of weirdos.

  At this point, Su Cheng spoke up and asked: "Qin Yun, are you daring enough to come and help me?"

  "How can I help?"

  "You come with me to negotiate, if necessary, you can say what you just said again. However, it may offend the leader."

  Qin Yun's eyes rolled around and he said vaguely: "You want to use my method to scare them?"

  "It's not all intimidation." Su Cheng said calmly: "If they ask for too high a price... a brainless pill is still just a pill after all."

  Qin Yun chuckled and said, "Since it's helping out, I don't want any benefits 10 years later."

  "That's natural." Su Cheng didn't say anything specific either, letting her imagine whatever she wanted.

  On the way back, it was still Liu and Chen who came over. Middle-aged Xiao Liu finally combed up his messy hair, outside of which was a green military coat. Due to the unsuitable weather, he had to open his collar, revealing the old sweater inside.

  Su Cheng pulled them over and introduced them to Xiao Pang.

  Chen Zunian smiled and also pulled Middle-aged Liu along, saying: "Let's introduce ourselves. Director Su, you've met Little Liu before. Don't look at him as being sloppy, he's actually our Deputy Chief Engineer, Liu Qiu. His research on the new 190 diesel engine is a major breakthrough, unfortunately due to circumstances it hasn't been put into production yet. From a technical parameter perspective, Z12V190 has already reached the leading domestic level...

  "A 12-cylinder 190 diesel engine, that's a big guy." Su Cheng had seen several large diesel engines before, which were taller and wider than people, and longer than two people, which could be used in power plants.

  Su Cheng suddenly remembered something and asked: "Liu Qiu, is it Huo Huo's autumn?"

  "Yes."

  Su Cheng was shocked at this time and muttered: "It's been so long."

  Jinan Power Machinery Factory's main business is diesel engine production, and after China Petrochemical Corporation's investment, it once occupied more than 60% of the domestic market share. Among them, Liu Qiu-designed 190 series diesel engines are also very famous, and before crossing over to Su City, they were still widely used, and were a generation of award-winning and profitable machines.

  This great talent, 20 years later, is still stuck in a research position, traveling around the world to give lectures, wearing an honorary doctorate hat and bringing doctoral students. During his studies in Suzhou, among the few thick books he hated the most was Liu Qiu's monograph "Structural Dynamics and Applications". At that time, seeing the cover of the book made him really want to die.

  But this guy is really miserable now.

  Su Cheng looked at Liu Qiu and smiled slyly.

  In the future, with a majestic demeanor, the diesel engine expert Wu Qiu, who was known for his academic excellence, looked puzzled.

  ……(。。)