Chapter 46 Confidence
"The annual output of 600,000 is very good. As far as I know, no one in the other dozen tire manufacturing companies in the county can reach this scale yet."
"Minister Song, through in-depth exchanges with experts in the tire industry, I learned some secrets of this industry. Some experts told me that only when the scale reaches an annual output of one million can it be considered the best economic scale."
"Yo, there is another statement?" County Magistrate Song was also novel about this concept.
"It's not that the industry has any requirements for production capacity, but after theoretical analysis, the conclusion is that the scale reaches one million, and all production factors of the enterprise can play the best performance. In mathematical language, it means reaching the extreme value. In this state, the cost of the product is the lowest. According to calculations, compared with the usual state, the cost can be reduced by 10%. " Guan Yuntian explained.
"If this is true, if the market capacity is sufficient, companies should strive to achieve an economic scale of one million per year."
"County Magistrate Song also knows that the automobile industry has now become a national pillar industry, which provides huge development space for the tire industry, so the market is not a problem."
"Then why didn't your Changda Group expand its scale to one million?"
"Uncle, Mr. Guan and others are currently preparing for production expansion." Yang Qian took over the topic.
"Is that so? That's great. You mentioned the concept of the best economic scale just now. I guess other tire manufacturers in Fuyuan County don't know about it because I have contact with those bosses and have never heard them mention such a concept."
"Uncle, don't forget that Mr. Guan's college graduates, how can those local bosses compare with him? His knowledge is incomparable, and the people he comes into contact with are completely different. Don't look at the same business, their focus is completely different. In addition, Mr. Guan and others encountered some difficulties in preparing for production expansion." His mother's uncle, Yang Qian was always not restricted in speaking in front of her uncle.
"What difficulties have you encountered?"
"The project is being approved by the county government department, and it is now stuck."
"Yo, there is such a thing? Let's talk about it specifically, what's the situation?"
Guan Yuntian took over, "That's right, our expansion of production includes two parts, one is the expansion of tire production capacity, and the other is the construction of a self-produced power plant. There is no problem with the expansion of tire production capacity, and the self-produced power plant is stuck."
"You still have to build your own power plant?" Deputy County Magistrate Song looked very surprised.
"According to experts, when the production capacity reaches one million, the electricity consumption required will be a huge number. I am afraid that the power supply department will find it difficult to meet the requirements at that time. In order to ensure that there is no accident, at this scale, experts suggest that it is best to provide self-produced power plants." Guan Yuntian explained.
"Oh, this is a perfect solution, but how can the project be stuck?"
"They said they had never approved a power generation project before and didn't seem to know what to do."
Deputy County Mayor Song was a little unhappy, "Hi, why are the staff in these departments so rigid? They don't understand and don't want to learn new things they have never seen, and are just bored there. Isn't this a big deal that delays the company? How can the local economy in Fuyuan County develop in such a lack of enterprising spirit?"
Seeing that Deputy County Magistrate Song was very dissatisfied with the functional departments, Guan Yuntian thought he was not complaining to the leader, and he did not want to cause trouble, so as not to make it more difficult to deal with the functional departments of the government in the future. So he picked up the glass to toast Deputy County Magistrate Song, trying to ease the atmosphere. "County Magistrate Song, in fact, the difficulty of the project establishment department is understandable, because they have never experienced such a thing before, and they just don't know what to do, and it seems that they have no other intentions."
"It is understandable that I haven't experienced it, why don't I ask my superiors for advice? Isn't it a matter of delaying the company? There are many self-owned power plants in large state-owned enterprises, but the people in these functional departments are ignorant and have little knowledge. What can I do if I can't get any such things?" Deputy County Magistrate Song's mood seemed to have not subsided. The state-owned enterprise he once worked for had a self-owned power plant.
"Uncle, don't be angry. Mr. Guan is not complaining to you. Don't criticize the staff of the functional department. Just take some time to ask. If someone really doesn't know what to do, you can give them a method."
"County Magistrate Song, please help us ask." This is also the only purpose of Guan Yuntian's appointment with Deputy County Magistrate Song.
"Okay, I'll go there tomorrow and ask what's going on. Uh, you're expanding production and building a power plant, so you naturally have to occupy a lot of land. There's no problem with the land use of the project?" Deputy County Magistrate Song really thought about the company very well.
"Oh, under your care, the Development Zone Management Committee takes great care of Changda Group, and they always try their best to meet the requirements of the company."
The next day, Deputy County Mayor Song went to the county Planning and Economic Affairs Commission to learn about the situation. Just like Guan Yuntian reported, the Planning and Economic Affairs Commission did not know how private enterprises should establish projects for building their own power plants.
"This situation has not been seen in Fuyuan County, but it does not mean that there is no in the whole province or other parts of the country. I think the country must have policies. I suggest you go to the Provincial Planning Commission for consultation. They must know the relevant policies of the country."
Deputy County Mayor Song's reminder indeed played a role. After consulting with the Provincial Planning Commission, the County Planning and Economic Commission quickly completed the project approval procedures for Changda Company, and Guan Yuntian immediately provided the relevant procedures to the county Agricultural Bank.
Before the Agricultural Bank of China discussed the loan application for Changda Company, Guan Yuntian decided to invite members of the Agricultural Bank of China to go to Changda Company to guide the work. "Is this necessary?" asked President Liu.
"Governor Liu, you have no doubt about your support for us, but it is hard for several deputy presidents to say that I would like to invite them to visit Changda Company on-site inspection to see our production and operation conditions and company style, so as to increase their favorability for Changda Company."
"Yuntian, I didn't know much about you before, but I didn't expect that your way of doing things was very comprehensive. Even if I didn't invite several deputy presidents to visit your company on-site inspection, I was confident that I could pass the loan application for Changda Company. After all, I am the top leader. When I invited them to visit, my work difficulty will naturally be reduced a lot. Since you have this idea, I will of course fully support it."
After three days, while the team members were free, President Liu arranged three cars and led all members of the Agricultural Bank of China to visit Changda Group Company. Under the leadership of Guan Yuntian, Lao Liu and several deputy presidents checked the production workshops of the Curtain Branch and the various workshops of the tire branch, and then the main raw materials and finished products warehouses, and took one and a half hours from beginning to end. After this trip, several Agricultural Bank of China leaders felt a little sore in their calves.
Several deputy presidents guessed that the purpose of Guan Yuntian's arrangement of this event was nothing more than to let everyone see the scale and strength of Changda Group and eliminate their unnecessary concerns.
After the field inspection, Guan Yuntian arranged for President Liu and his party to rest in the company's conference room. The office staff had already prepared fruits and tea at the small conference table. Taking advantage of this opportunity, Guan Yuntian introduced Ye Jiayi to the leaders of the Agricultural Bank of China, and gave detailed explanations on the expansion of the tire project and the self-produced power plant project.
At lunch at noon, Guan Yuntian wanted Ye Jiayi to attend as a companion. Considering that Deputy Governor Jiao of the Agricultural Bank of China was not upright, Guan Yuntian gave up this idea. He was afraid that Lao Jiao would be unethical after drinking, so he made some boring requests. With Ye Jiayi's personality, Ye Jiayi would definitely not give face, but that would backfire. Not allowing Ye Jiayi to accompany her is not only a protection for her, but also avoid unnecessary troubles.
During lunch, President Liu asked Ye Jiayi why she didn't come, "Oh, two or three guests from the Provincial Rubber Design Institute came to do business in the morning, and Mr. Ye accompanied them to have dinner at noon." Guan Yuntian made excuses.
"This Mr. Ye seems to be from another place, right?" Old Liu asked.
"Yes, she was invited by me from other provinces through a nationally renowned human resources agency, commonly known as a headhunter company."
"This man looks very elegant."
"Oh, she is an MBA graduate from the University of Michigan Business School. After returning to China, she worked as a department executive in a wholly owned company of the Fortune 500 Dow Chemical Company for more than four years. Because she took two years of maternity leave at home and was worried that she would not be able to adapt to the work rhythm of the original company when she went back, she was poached by me. Otherwise, companies like ours would not be able to invite such management talents." Guan Yuntian introduced.
After drinking and eating, Guan Yuntian prepared valuable gifts for each guest. When he brought the guests one by one, it was almost three o'clock in the afternoon.
The next day, President Liu convened members of the Agricultural Bank of China team to discuss the loan application of Changda Group. He first talked about his views on the company and asked several deputy presidents if they had any different opinions. "To be honest, Guan Yuntian's courage to let us go to his company to see the truth means that he is full of confidence." A deputy president said.
"Well, how many of the companies supported by the Agricultural Bank now, including private and state-owned enterprises, dare to give us a solid foundation? Even if we want to see their solid foundation, these bosses still have to hide. Guan Yuntian's courage to give the Agricultural Bank of China shows that he is very confident in his Changda Group Company. Through field investigation, I feel good about this company."
"I agree with you. My feeling is that this company is not only good at doing well and has strength, but also good at the company's boss Guan Yuntian. It's not that he can drink and taste good, but that this person has a good character. He is a real person and a serious person. He is definitely not the kind of scheming who is only scheming." Deputy President Jiao's experience is deeper.
"Okay, it means that everyone agreed to the loan application of Changda Group Company, and the rest will be left to the Credit Department for specific processing."
After the meeting, President Liu immediately notified Guan Yuntian of the results in his personal name. Later, the Finance Department of Changda Group also received a call from the Agricultural Bank of China Credit Department, informing them that they could handle the loan procedures at any time.
In this way, the financing problems of project expansion and self-produced power plants were not only solved, but also successfully entered a large state-owned financial institution like the Agricultural Bank of China, which broadened the channels for Changda Group's future financing activities.
With the start of the tire expansion project and the construction of a self-produced power plant, the entire western factory area of Changda Group Company has become a large construction site. The various affairs that followed have made Guan Yuntian overwhelmed. He could have a day off a week some time ago, but now he has returned to his original state. Guan Yuntian wished he could live in the unit and didn’t even have time to go home.
Chapter completed!