Chapter 0244: Luzhong Iron and Steel Plant's Choice
On August 23, 1995, in the office of Li Dagang, director of Luzhong Iron and Steel Plant, two young people stood opposite the desk of Li Dagang, the gray-haired director of the factory. Pen, fun, and www.biquge.info
"Factory director, this is a great opportunity for the development of our factory, a great opportunity."
"Factory director, if we can apply for this foreign investment, within three years, our factory's steel output can exceed one million tons!"
Li Dagang took a sip of water, his expression a little serious.
"Miao Kenong, Tian Wenjiang, are you two reliable about this matter?"
Miao Kenong is now Li Dagang's secretary, while Tian Wenjiang is the director of the strip factory. Both of them are very young, Miao Kenong is 28 years old and Tian Wenjiang is 31 years old, both are young cadres of Luzhong Iron and Steel Plant, and they have a bright future.
If this matter had not been obstructed by Wang Zheng, according to the development of the previous life, this time they strongly recommended the director Li Dagang to use foreign capital to renovate and expand the Luzhong Iron and Steel Plant, and the Luzhong Iron and Steel Plant would suddenly develop into one of the top ten iron and steel enterprises in China, ranking sixth at the highest level. Later, the two also became the helmsmen of the Luzhong Iron and Steel Plant.
However, although the two of them are still thinking very correctly now, and they are also in line with the trend of the time, but in this life, because of the existence of Wang Zheng, I am afraid that their ideas will be difficult to realize.
Miao Kenong wears glasses, is tall, thin, and has the temperament of a traditional literati. However, he was particularly excited today, and even looked like two people in normal times.
Miao Kenong pushed his glasses, swallowed his saliva, propped his hand on Li Dagang's desk, looked at the old leader who had pulled himself by hand, and said: "Factory director, it is 100 percent true that the People's Daily has published a special article and a news network has reported that state-owned enterprises are allowed to use foreign capital to expand production. ”
Li Dagang looked at Miao Kenong and nodded lightly.
"Our factory has 40,000 employees and 70,000 family members, and every step in the factory is related to the food of these 110,000 people. If one step is not good, the factory will not be able to go on, and these 110,000 people will have no food to eat, which is a big deal. ”
Tian Wenjiang saw that Li Dagang was a little hesitant, and the old faction always had a fearful attitude towards reform, innovation, and development, and always felt that the current situation was not too bad, and once the reform failed, he was always worried that the outcome would not be managed.
In fact, judging from the situation in 1995, the situation of Luzhong Iron and Steel Plant is really not very good.
In 1995, the output of the Luzhong Iron and Steel Plant was only 400,000 tons, but it had 40,000 employees. In other words, the average person produces only ten tons of steel a year.
Such a high labor cost makes the competitiveness of Luzhong Iron and Steel Plant very low. Moreover, the technology of Luzhong Iron and Steel Plant is also very backward, not to mention in the world, even in China, it is also a relatively backward steel plant.
In 1995, a large amount of steel was needed for national construction, so various steel mills increased their horsepower to expand production, which was also a very normal phenomenon at that time.
However, the expansion of production involves the constraints of capital, manpower, technology, and other aspects.
Luzhong Iron and Steel Plant has no shortage of manpower, and more than 1,000 of the 40,000 employees have a bachelor's degree, which is really a waste for a steel enterprise with an annual output of only 400,000 tons of steel.
As for technology, all steel mills in the country lack technology, and if foreign capital can be used, then foreign advanced smelting technology can also be introduced.
Tian Wenjiang and Miao Kenong's idea is to borrow foreign capital from the central bank, and then use foreign capital to carry out large-scale reconstruction and expansion of Luzhong Iron and Steel Plant, and at the same time introduce advanced foreign smelting technology to enhance the competitiveness of Luzhong Iron and Steel Plant.
According to the rough estimates of Tian Wenjiang and Miao Kenong, this time, they will have to borrow about 3 billion yuan in foreign capital from the central bank.
The interest rate on loans is only 8.5 percent, which is far lower than the domestic interest rate.
However, Li Dagang, director of Luzhong Iron and Steel Plant, was a little hesitant. The loan is 3 billion yuan, although the loan interest rate is only 8.5 million, but the interest alone is 255 million yuan a year.
Now, Luzhong Iron and Steel Plant has an annual output of 400,000 tons, and its annual sales revenue is only 1 billion, and the profit is only tens of millions.
Bear more than two and a half million interest a year, once the investment fails, the consequences are unimaginable.
As the director of Luzhong Iron and Steel Plant, Li Dagang had to think about this.
Tian Wenjiang listened to Li Dagang's words, took a step forward, and said with some excitement: "Factory director, it is related to the livelihood of 40,000 workers in the future, we must use foreign capital to carry out reconstruction and expansion, we must launch a new smelting production line, we must eliminate backward production capacity and technology, we must develop ideas, and we must reform!" If you don't develop, Lugang will be a dead end, and if you don't reform, Lugang will be a dead end! Factory director, make up your mind! ”
Tian Wenjiang's words were fierce, but Li Dagang's brows furrowed even tighter!
However, it can be seen that Li Dagang is engaged in a fierce ideological struggle at the moment.
Miao Kenong hurriedly leaned on his stomach again, looked at Li Dagang and said, "Factory director, make up your mind." ”
Miao Kenong and Tian Wenjiang's eyes were staring at Li Dagang, Li Dagang raised his head, as if he had made a lot of determination, and asked, "Are you two sure that our factory can be renovated and expanded in three years?" ”
"Absolutely!"
Li Dagang slapped the table violently, stood up from his seat at once, and cursed in his mouth: "Damn, let's do it!" ”
When Tian Wenjiang and Miao Kenong heard this, they looked at each other happily, and then looked at Li Dagang.
"Factory director, our 40,000 employees in the whole factory are waiting for your words!"
However, after Li Dagang finished speaking, he frowned and thought for a few minutes, and then looked at Tian Wenjiang and Miao Kenong with a serious tone and said: "Tomorrow the regular meeting of the factory leaders, let me mention, the two of you will introduce this matter to you in detail, and then we will set up a leading group at the level of the director of each factory, and we must do this matter well!" ”
"Okay, factory director, we are confident!"
Tian Wenjiang and Miao Kenong were very happy.
However, when they were planning how to renovate and expand the Luzhong Iron and Steel Plant on the current basis, they did not know that on the piece of land on which they planned to build the factory, ten ginger distilleries were about to be built.
Although the investment in each ginger distillery is only more than 5 million, the investment in ten ginger distilleries is only 50 million, which is nothing compared to the investment of more than 300 million yuan in their steel mills. However, people's investment of 50 million yuan brings 3 billion profits, while their investment of 3 billion yuan only brings 1 billion profits. Moreover, even such profits will not bear fruit until ten years later.
It is easy to get a loan of 300 million, but how to spend the 3000000000000000000000000000000000000000000000000000000000000000000000000000000