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Chapter 713 The Horn of Big Upgrade (Third update, please subscribe)

What are the prerequisites for industrial transfer?
Most of the time, people think of the country’s industrial surplus, but at the beginning, the core is to eliminate backward production capacity. The usual method is to sell the country’s backward equipment abroad, but this is a one-time deal, so sometimes, People will also adopt investment methods - moving their own backward machinery and equipment to foreign countries to set up factories, and using cheap foreign labor to make up for the low production efficiency and high production costs of backward machinery and equipment.

This is the original intention of industrial transfer - to eliminate backward production capacity.

What does backward production capacity correspond to?
Of course it is advanced production capacity.

In fact, Nanyang still has a lot of advanced production capacity. The famous "Tiannu Air Jet Loom" is the most advanced loom in the world. From the beginning of 1945 when the first "air-jet loom" was born in the British laboratory, to the "Tiannu brand air-jet loom" of Tiannv Textile Machinery Company in 1945, it was put into production.

Since then, air-jet looms have become the representative of Nanyang's most advanced production capacity.

"...The weft insertion method is different from the mechanical weft insertion of ordinary looms. The speed of mechanical weft insertion is limited by mechanical movement and cannot be raised very high. For example, the fastest weft insertion rate of arrow looms is only about 600 meters/minute. , the weft insertion frequency is only about 300 times/min, while the weft insertion rate of the Tiannv brand air-jet loom has reached the fastest 1700 m/min. As for the weaving width, it has increased from the initial 1200 mm to 2400 mm..."

When Swati, an engineer of a textile machinery company, mentioned all this, he couldn't help but recall the several times of help from His Excellency the President. When he was in London, with His Excellency's funding, he made the original prototype of air-jet weaving. model, but due to the lack of control measures for airflow diffusion, the width of the fabric was only 450 mm. It was at your suggestion that they developed a combined duct piece to limit the airflow diffusion, which made a breakthrough in jet technology and is now in progress. Because of this, it was later put into production.

In the past few years, they have continuously improved their air-jet looms and developed auxiliary nozzle weft insertion technology, which has greatly increased the width and speed of the loom, and the test model even exceeded 2000 meters.

The weaving efficiency has increased by more than three times on average. This efficiency is amazing, and of course it is also the core of the profits of Nanyang Textile Enterprises - the production efficiency is too high.

"However, due to technical reasons, we can only produce single-color, simple plain weave fabrics. However, the company's technical staff have been working on further improving it..."

After listening to Swati's introduction, Zhu Jiechen, the general manager of the company, just nodded slightly and then asked.

"Is the development of the new arrow shaft loom going smoothly?"

Although the efficiency of air-jet weaving is high, its product quality is poor and the fabrics are single. Therefore, current Nanyang textile companies still cannot do without arrow looms. Of course, several models including Toyota G type Arrow looms, like air-jet looms, are the company's current flagship products.

"Everything is going pretty well. The weft insertion rate of the sample arrow loom in the laboratory has reached the fastest speed of 1000 meters per minute. However, there are still some technical problems that need to be overcome due to thread breakage and other reasons."

Swati then explained the technical problems encountered during the development process one by one. Although Zhu Jiechen was not a technician, he was not an outsider in technology. After they chatted for a while, Zhu Jiechen said.

"Chief Engineer Sri Lanka, the current market situation has undergone some changes. The Ministry of International Trade and Industry has issued a new document to encourage companies to invest in eliminating outdated production capacity abroad,"

Referring to the recently hotly discussed "elimination of backward production capacity", Zhu Jiechen continued.

"At the same time, we also plan to work with the financial sector to promote equipment updating in the industrial field. The financial sector will provide low-interest loans to support companies in updating equipment and upgrading production capacity. In other words, there will be a large number of factories purchasing new equipment in the future, so we We must try our best to seize this opportunity, but we must not take advantage of foreign companies. Once such an opportunity is missed, there may not be another time.”

What Zhu Jiechen didn't know when he said these words was that for a long time to come, industrial transfers would continue, and correspondingly, enterprise equipment would also be constantly upgraded.

"Industrial transfer cannot just be a matter of change. This view is correct."

In the office of the official residence, Li Yian said to Zhao Shijie and Zuo Xiaohan while looking through the documents.

One of them is the governor of the Central Bank, and the other is the director-general of the Ministry of International Trade and Industry. They came here together today because of the industrial transfer.

"Yes, Your Excellency,"

Zuo Xiaohan said. "If everything is reversed, then what awaits Nanyang will definitely be an economic recession. In the final analysis, industry is the foundation. Without industry, the financial industry and the service industry will be without roots. Therefore, the purpose of industrial transfer is not Not only to eliminate backward production capacity, but also to promote the upgrading of enterprise production equipment. "

Listening to his explanation, Li Yian put together the documents in his hands. This document was jointly issued by the Ministry of International Trade and Industry and the Central Bank to encourage enterprises to update equipment.
"Tell me, how did you come up with this?"

Li Yian was still very surprised that Zuo Xiaohan was able to discover the disadvantages of "industrial transfer". After all, it is very rare for people to see this and think of countermeasures. To a certain extent, this kind of thinking is undoubtedly ahead of its time. It can even fundamentally solve a series of problems caused by industrial transfer.

"After promulgating the proposal for industrial transfer, because you once mentioned the possibility of de-industrialization brought about by industrial transfer, I have been thinking about this issue. As you said, capital is profit-seeking. Once they try When it comes to the sweetness brought about by industrial relocation, cheap labor is like opium, and you can’t quit it.”

That’s right!
In another world, there are a few developed countries that can stop using cheap products brought about by globalization. Bargains are really delicious!

And at what price does this fragrance come?
Unemployment of the middle and lower classes and deindustrialization of the country. This process is like a slow poison. At the beginning, everyone feels that the cheap goods are very fragrant, and then slowly transfers. In this process, people slowly pay the price for the cheapness. This price may even destroy a whole company. The foundation of the country.

It is for this reason that when designing the "industrial transfer" plan, Li Yian mentioned that while the company was transferring backward production capacity, it must also do a good job in relocating employees. It must not be done at once, but Zuo Xiaohan saw it. Farther away.

The plan he proposed will not only allow Nanyang to realize industrial transfer, but also ensure that Nanyang's foundation will not be damaged.

This is indeed a very good method.

In another world, with the so-called globalization, countless companies have disappeared in their own countries. They have set up production lines abroad, and capital has benefited from this process.

What about ordinary industrial workers?
Although they enjoy seemingly cheap foreign products, they are trapped in unemployment, just like another world, the American Rust Belt.

With this lesson learned, the same thing will never happen in Nanyang.

Nodding slightly, Li Yian motioned for them to continue.

"Therefore, restrictions must be imposed from the very beginning. Although we have issued corresponding employee placement regulations, this only treats the symptoms rather than the root cause. The key is to introduce corresponding measures to encourage enterprises to transfer backward production capacity while also Upgrading equipment domestically will avoid domestic de-industrialization and employee unemployment, and at the same time enhance domestic industrial production capacity,"

"Not only that,"

Zhao Shijie said.

"Through financial support, the financial industry can also benefit from it and achieve further development."

This is of course the fundamental reason why he supports this kind of industrial upgrading, from which the financial community can obtain very generous returns.

As soon as he finished speaking, Zuo Xiaohan continued to add.

"Furthermore, the industrial level of technical equipment will also be improved accordingly. After all, market demand will stimulate the development of the equipment manufacturing industry. Of course, so we must eliminate backward and inefficient equipment, old equipment that has expired, and transfer these equipment abroad. At the same time, it will not only lead to the de-industrialization of Nanyang, but will also further promote the industrial development of Nanyang and further improve the industrial level of Nanyang!”

After he finished speaking, Zuo Xiaohan looked at Your Excellency with expectant eyes. Now is the time for Your Excellency to make a decision.

(End of this chapter)