Back to 1980: Please Love Me Again

Chapter 224 The Dilemma of the Textile Mill
Pingyang County, the county party committee compound.

Although the state-owned textile factory is not the most profitable factory in Pingyang County, let alone the one that pays the most taxes, it is undoubtedly the factory with the largest number of workers in Pingyang County.

Its rise and fall are directly related to the livelihood of more than [-] workers.

And the total number of employees in the upstream and downstream industries associated with it will not be lower than this figure.

The textile factory mainly produces and sells spinning, weaving, printing and dyeing, knitted fabrics, shirts, textile machinery accessories and equipment, etc.

In the planned economy era, it is basically an industry that guarantees income from drought and flood.

However, in recent years, the profitability of textile mills has been declining.

The fabrics they produce have a single category and simple colors. It can be said that there is no innovation, and the sales situation is worrying.

In this context, factory leaders frequently made foolish tricks.

First, it was shoddy for profit, but the sales of fabrics that were already difficult to sell were frequently returned due to quality problems, and the sales situation further deteriorated.

The reputation built over 20 years of hard work was also destroyed.

Seeing the poor sales of fabrics, the leaders made another foolish move to reduce fabric production and increase investment in spinning business.

In the case of poor returns, they borrowed money to expand their spinning business.

I really don't know what these people are thinking. They can't sell their own cloth, and they still have the intention to increase spinning.

And in this day and age, textile mills are everywhere, and there is no shortage of yarn in the market.

There is no shortage of fabric either.

What is lacking are fabrics with intricate patterns and bright colors.

What's more, there are fashionable clothes!
There is no way, the thinking of workers and managers is still in the era of planned economy, they cannot adapt to the new economic environment, and they do not understand that production plans should be formulated according to social needs.

It's not a production plan that is artificially decided.

Of course, it wasn't their fault, at least not entirely.

In the era when the market economy and the planned economy compete on the same stage and gradually replace the latter, two completely different states will naturally appear.

One is that the nascent private economy is thriving, and it can even be said that it is developing rapidly.

One is the old economic format, and some state-owned enterprises whose transformation has not been timely and incomplete, are walking with a limp and declining day by day.

It is only 1983, and the contrast is not yet obvious.

Over the next decade, the contrast will only intensify.

What can't be broken or built is the price and growth.

Finally, when County Magistrate Feng once again invited Zhao Wenmu to drink tea in the county party committee compound, several strange faces appeared in the reception room.

It's finally here.

Zhao Wenmu thought to himself.

"Xiao Zhao, these two are director Jiang Ming and deputy director Lu Wenyuan of our county's state-owned textile factory."

After shaking hands with each other, the director Jiang, who looked over 50 years old and had big eyes but rather sad face, rubbed his hands and said:
"Comrade Zhao, to be honest, the textile factory is facing some difficulties. You are a very talented young entrepreneur in our county. You must be quite accomplished in business operations. We are here today to ask for advice and see if there is any way Get the textile mills through the crisis."

Zhao Wenmu quickly sat up straight, and said humbly:
"Don't dare to ask for advice, why don't you tell me about the situation of the factory, and I will give you a staff advisor?"

Now that they have decided to ask Zhao Wenmu for help, the two of them didn't hide anything, and said directly:
"There is a large backlog of cotton yarn and cloth in the factory, but sales have been blocked. There is really no money in the account. It has not been paid for three months. If this continues, we will have to stop work."

Then the two introduced the backlog of products in detail.

Once the whole plant is shut down, the impact will be very serious.Mechanical equipment is not a car, and it does not mean that it can be on the road after turning off the engine and turning it on again.

Once the equipment is shut down, it can only be restarted after a comprehensive inspection.

More importantly, the supporting upstream and downstream industrial chains may have already been transferred to other industries, or cooperated with other enterprises.

A company that is already on its last legs, after the shutdown, I am afraid there will never be a chance to restart.

The leaders of the textile factory and the county government knew the importance of it, so after struggling for so long, they had no choice but to find Zhao Wenmu.

"What is the market value of this batch of inventory?"

Zhao Wenmu asked.

According to what he learned, the textile factory has not only not paid wages for three months, but has only paid half wages for a period of time before that.

"There are 120 million spindles of various yarns and 26 pieces of fabric in the warehouse, with a market value of about 180 million yuan."

Lu Wenyuan replied.

Zhao Wenmu directly multiplied this number by 0.8 in his heart, and the conversion was about 144 million yuan.

After thinking about it, I felt that it was still not safe, so I multiplied it by 0.9, and it was about 130 million yuan.

Well, this amount should be more reasonable.

After all, the goods in the textile factory are flawed, and the so-called market value cannot be realized at all.

"How about it, Xiao Zhao, do you have a way to dispose of this batch of products?"

Magistrate Feng asked kindly.

The most urgent task is to get rid of the inventory. Only in this way can the textile factory come back to life with ease.

Moreover, the textile factory owed more than 100 million yuan in wages to employees, bank loans, and suppliers' payments. If they don't pay back the money, something will happen!
Thinking of this, Magistrate Feng felt a headache.

Looking at Jiang Ming and Lu Wenyuan in front of him became more and more unpleasant.

"Leader, I can find a way to digest this batch of goods, but I need to check the quality of the goods on the spot before making a decision."

"And the price may not necessarily satisfy the two leaders."

Jingyun Button Factory has been renamed as Jingyun Clothing Accessories Factory as early as last year, and Zheng Meiyun has been planning to enter the clothing production.

If they can eat up the inventory of the textile factory, it will not only solve the urgent needs of the county, but also obtain a batch of low-priced raw materials for the clothing business of Jingyun Factory.

With this huge favor, the county can also give some policy support to Jingyun Factory.

Even if it's verbal.

Get more in one fell swoop.

Why not?
Although Zhao Wenmu was happy in his heart, he didn't show it at all on his face.

Instead, he seemed hesitant, as if he had made a lot of determination and made a huge sacrifice for the county.

"The value of these spindles and cloth is too high, and I am really powerless. But considering the thousands of families in the textile factory, I am willing to give it a try!"

Zhao Wenmu's words are sincere and serious.

"Okay, Xiao Zhao, I sure didn't misread you! Since this is the case, let's read the things first!"

County Magistrate Feng also knew that for such a large transaction, the two parties must carefully confirm it before making a decision.

Dang even made an appointment with Zhao Wenmu to go to the textile factory to inspect the situation the next day.

"Xiao Zhao, tomorrow you directly ask the quality inspectors and financial personnel from Jingyun Garment Accessories Factory to come together!"

County Magistrate Feng didn't give Jiang and Lu any face at all. He just asked Zhao Wenmu to take his own people to check the product quality and inventory.

The two leaders of the textile factory could only helplessly smile and say welcome.

Everyone knows that even if this difficulty can be overcome, there is a high probability that the leadership team in the factory will not survive.

Zhao Wenmu has no intention of taking over the textile factory, so he doesn't care about it.

These products are what he cares about.

(End of this chapter)