The Industrial Giant Reborn.

Chapter 517 The predecessor of BOE
"Yes, Director Qi made an appointment with me this morning and told me that the domestic market for home appliances can be fully opened to us. The specific details still need to be discussed, but he also suggested that we at Midea can consider it and help this Yan Beijing No. [-] Electronics Factory, but I didn’t agree. This company actually asked Hong Kong to find me a few years ago. I also sent someone to inspect it, and it didn’t meet our requirements at all." Lei Shengli details said.

"The Midea factory here in Yanjing has not considered cooperating with this No. [-] electronics factory?" Chen Zhiwen asked again.

"No, Yanjing's current Midea factory mainly produces products such as washing machines and refrigerators. Their demand for electronic materials is not large, and their scale is not very large, so the headquarters does not authorize Yanjing to The right to re-develop electronic material suppliers here only allows the development of general large-scale shell bracket parts suppliers, and even motors and compressors are still produced in Hong Kong." Lei Shengli replied.

Four years ago, Midea invested in a factory in Yanjing. Although it was large in scale locally, it was far behind the Midea Group as a whole. It was placed in Yanjing because of the possibility of large-scale cooperation in the future. So we first built a small one to get in touch with the local culture, including the Red Bull factory in Shanghai, some small factories directly affiliated with Galaxy Trading in Guangdong City, etc. In Shenhai City, we only started directly after receiving direct orders from the boss. large-scale investment.

For factories in the mainland, there is an integration of the industrial chain in Shenhai City. Even if they are not available, they are imported directly from Hong Kong. The distance is relatively close anyway. In other places, components with higher transportation costs are purchased locally, such as Red Bull. The raw material food is purchased with foreign exchange from a state-owned enterprise in charge of grain trade in Shanghai. The Midea factory in Yanjing mainly purchases various metal sheets and frame structures locally.

"The products produced by this Yanjing Electronics Factory are very average?" Chen Zhiwen asked again.

"Yes, but the reason why we make products that do not meet our supplier standards is not because of this, but because the entire management culture of this factory is very poor. Even if our people go to inspect, many workers are still sleeping and absent from work. "Absenteeism, our people later found out by asking people nearby that it had been settled. It is said that in normal times, so many people are playing cards and having fun, and the leaders in the factory seem to be unable to control it." Lei Sheng Lee shook his head and said helplessly.

"Enterprises in Yanjing have indeed had this trend in recent years." Chen Zhiwen nodded and asked: "As for the factories we invested in Yanjing and the Yanjing Jeep factory, do you know how to avoid this problem? ?”

Both companies are joint ventures. Generally speaking, for such joint ventures, the foreign party is responsible for the technical quality, the mainland is responsible for the personnel management, and the finance is jointly supervised by both parties.

However, if the workers are too bad, foreign investors cannot ignore them, including SAIC Volkswagen and other investors.

"Our original investment team was also troubled by this problem. Later, we imitated a Japanese company. They also had this problem when investing domestically, so we discussed with local state-owned enterprises. People can choose from state-owned enterprises, but they can also choose foreign companies. It has the final say. At the same time, those who stay can also receive some additional bonuses from foreign parties. This is equivalent to a screening system. Many workers are indeed not good, but there are always some good ones, and then some good people are left. , although the cost is a bit higher, but with the wages in the mainland, it doesn't matter if it's a little more." Lei Shengli explained: "Later, many foreign businessmen began to use this trick to select suitable people through screening. And in this way, Originally, the workers still belonged to other mainland companies and were not part of a joint venture, which also avoided pension issues."

"This is a good method. It's good for little Japan to think of it." Chen Zhiwen nodded and said, this is equivalent to a foreign-funded joint venture that spends money to buy employees from state-owned enterprises, chooses ones that are satisfactory at a higher price, and returns those that are not satisfied, so It can also avoid the current problem in domestic laws that workers cannot be fired.

In fact, in the early days of reform, he also knew that mainland employees had problems that were difficult to deal with. It is said that after Haier reformed, the first thing he did was to put up big-character posters everywhere, asking workers not to urinate, sleep, or urinate in the factory. Absence from work was an outrageous thing, but now it is the norm.

His main investment is in Shenhai City, which is the forefront of reform. Many are imitating Hong Kong. This problem does not exist. In addition, he can be a sole proprietor. This is why he invests heavily in Shenhai City. On the mainland, in the factory industry One piece. In fact, his investment before this year was not much. It was just to test the water. He didn't care about how the workers handled it. He couldn't put any thought into such a small matter.But it has to be said that Little Japan’s method avoids all problems.

"Our factory can only adopt this model in the future. I have also told Director Qi about this, because our scale is very large. If he really invests in Yanjing, he will need to invest from outside Yanjing City. We sent some people over to screen for us. The same applies to Shanghai and Guangdong. Relatively speaking, Guangdong may be more convenient," Lei Shengli said.

"Well, in this regard, there is no such problem in Shenhai City. This can be regarded as the advantage of Shenhai City." Chen Zhiwen said with a smile.

"Yes, unless the mainland changes the law." Lei Shengli said.

"This is impossible. We won't invest if it's not suitable for us. I'm not a member of the public. There's no need to go to such trouble and force the country to change the law." Chen Zhiwen shook his head and said: "The higher the labor cost, the higher it will be. As long as it can be compensated in other aspects." That’s it.”

"Okay. Director Qi belongs to the central government. He will not participate in the subsequent discussions between us and various cities, but we still have to return him. Are we rejecting the matter of Yanjing No. [-] Electronics Factory?" Lei Shengli asked. "Wait a minute, ask Director Qi to find some detailed information about this company for me. I'll take a look at it first. You can also check the basic information. I'm afraid they will also optimize it." Chen Zhiwen paused and continued. said.

If it is an ordinary factory and is not qualified to enter the US supplier system, then just refuse it directly. But Chen Zhiwen knows that this Yanjing No. 50 Electronics Factory is actually the predecessor of the future domestic LCD panel giant BOE, which was established in the 5s. It was cultivated as the largest electronics factory in the country. Unfortunately, it was electronic tubes at that time. Now the world has entered the transistor era, and it is suddenly out of touch and cannot keep up. The larger the scale of the company, the faster it will die. Nokia's mobile phone industry is In this way, the market value fell from 2000 billion euros to 100 billion euros in 500 years. Before it died completely, it used the capital reserves of the previous mobile phone industry to acquire several telecommunications companies in Europe, and then collected patent fees, plus other industries. I barely made it to the bottom of the Fortune Global [-], but the prestige is no longer there.

However, in Chen Zhiwen's memory, BOE should have been in dire straits in the late 80s and began to gradually turn around in the early 90s. But it is only 1984. Is it because of its own butterfly effect that led to BOE's premature decline?

Although the scale of Midea's industry is large, it does not have a great impact on the country. Unless it is developing itself, it has also raised the entire Hong Kong electronics industry by almost three levels. In addition to some high-tech chips, other electronic components , Hong Kong can basically make it by itself.

After Hong Kong's labor costs became high, and Chen Zhiwen moved the home appliance industry to the deep sea early on, many electronic parts factories followed suit and entered the deep sea. Although they mainly relied on Midea for a living, no one with a brain would do it. Other customers will be rejected.

If these large number of ordinary parts factories with technology content no less than that of Japan and South Korea start selling domestically, it will have a huge impact on the domestic electronics industry chain, even if these factories cannot do so due to foreign exchange balance. The scale is very large, but there are too many scammers in Shenhai City. You can make hundreds of dollars from selling clothing and clothing, and you can grab hundreds of electronic components in one hand, which makes it easier to sell.Or, those mainlanders in Shenhai City built factories and learned the technology after working with Midea. They can freely sell in the country.

Looking at it this way, BOE has been impacted by Shenhai City. Electronic parts are so small, no matter how bad the domestic road traffic is, the transportation cost is not much. The industrial chain is concentrated in one place across the country and the cost is low. So for any other Every place has a huge impact.

"Okay, Chen Sheng, I will notify Director Qi immediately and arrange for someone to check the specific situation." Lei Shengli nodded and said.

"You don't have to worry about the entry of game consoles into the country. This requires central approval. Then starting from today, we will discuss with several big cities in the country where to invest. In short, if we don't plan where to invest in advance, who will give it? We will go wherever the discounts are the most." Chen Zhiwen said.

In fact, there is basically no big difference in where to invest. Shenhai City has a distance advantage, but this alone is obviously not enough. These big cities will be the economic capitals of the country in the future, so there is actually no particularly big difference.

"Understood." Lei Sheng said with a smile.

Yanjing First Electronics Factory:
"Chen Zhiwen wants our company's information?" Factory director Zhang Hongfeng heard what the anxious Director Qi said, and immediately asked in surprise: "What do you want our information for?"

"I don't know either." Director Qi waved his hand and said: "Lao Zhang, we are also old friends. You also know that Midea's investment plan this time is very large. If the First Electronics Factory can become a supplier, it will basically The immediate problem can be solved. Let’s not talk about the profit, let’s not lose money first, so I negotiated with Midea’s senior management. Unexpectedly, this incident actually alarmed Chen Zhiwen. He arranged for someone to come over and say that he wanted to see your company’s information. , As for why, he didn’t tell me and it’s hard for me to ask.”

"Then it looks like it's an opportunity. I'm really lucky to be noticed by Chen Zhiwen." Zhang Hongfeng said with a wry smile: "But the problem is that the current No. [-] Electronics Factory is so bad that even the wages are not paid. Since I can’t come out, I’ve asked my employees to go to the airport to help earn some living expenses. If Chen Zhiwen finds out about this, he will lose all his face.”

"Being able to support tens of thousands of people again, this little bit of face doesn't matter." Director Qi said: "Don't write falsehoods. You can leave out some inappropriate ones. With Chen Zhiwen's relationship, he will definitely be able to find out a lot of things on his own. , it doesn’t matter whether it’s embarrassing or not, but if the fraud is discovered, if it goes to the top, you and I will be in trouble.”

"Understood, I know what to do." Zhang Hongfeng nodded and said. He can bear the embarrassing things alone. He is retiring soon anyway. Besides, it is enough that everyone knows what is going on. But if he cheats, foreign businessmen will It would be a big sin if he was discovered in front of him and it also affected the original opportunities of the No. [-] Electronics Factory.

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(End of this chapter)