Jilin Dongchen Woolen Co., Ltd.: Reduce the weight of the upper grade

June 09, 2023


Reduce the "weight", the upper grade, the live enterprise --- the restructuring of the state-owned Jilin Dongchen Woolen Co., Ltd., after being reorganized by Jilin Hengsheng, there have been too many changes. From Dongchen to Hengsheng, it is not only the enterprises that have survived, but also the wool textile industry in Jilin Province and even the Northeast.
A few days ago, the reporter talked to the head of the Dongchen Left-behind Office Gao Gaogui and the chairman of Hengsheng Tang Jinbo. The two spokesmen before and after, together made a thorough understanding of the current and future changes of this asset.
The left-behind cabinet composed of the former chairman of Dongchen and the secretary of the party committee, Gao Gui and others, has been responsible for the aftermath of Dongchen. They have clearly clarified the 29 affiliation relations between the old enterprises and the employees, and they are doing the work of “dismantling the numb group” every day. Now the solution is almost at the end.
Tang Jinbo, the former Harbin woolen textile distributor, first bought out the second woolen mill in Weinan, and then reorganized Dongchen in the form of rent-and-purchase, and started the Jilin Hengsheng wool spinning company. With 10,000 spindles in Weinan and 13,000 spindles in Dongchen, Hengsheng has become the largest fine wool spinning enterprise in Northeast China. It is also the only woolen mill in Northeast China.
High value: Before the bankruptcy of Dongchen, the total book assets were 314 million yuan and the debt was as high as 329 million yuan. Among them, the financial liabilities were 270 million yuan, the internal employees were 35 million yuan, and the social security was 21 million yuan. With such a big burden, who dares to reorganize? Dongchen was forced to embark on the road of bankruptcy according to law. At the end of December last year, the court issued a final ruling, which solved the complicated debt and debt relationship formed by Dongchen in the past few decades, and the assets of the enterprise became pure assets. The chairman of Weinan Hengsheng optimistic about this asset, came to reorganize, and paid the funds in advance to repay the employees, and started production in January this year.
Tang Jinbo: Dongchen used to be the leader of the Northeast wool textile industry and had a glorious history. Before Dongchen passed three technical reforms, the equipment was no problem, and the quality of the staff was also very good. However, the financial burden was too heavy and the capital chain was broken. For example, in the past, Dongchen produced 1 meter of cloth, and the profit was two or three dollars. However, enterprises are supported by bank loans, and the financial expenses are high. This profit is not enough.
High value: Dongchen was listed as one of the 15 key textile enterprises in China by the State Economic and Trade Commission. In the past, the government paid attention to it and kept investing money. The morning in Dongchen was very good. Later, the bank dialed the loan, and the burden of the enterprise was heavy. The "sea" was sunk. There are only about 800 people in the same production scale, but Dongchen is on the job plus more than 3,000 retirees. One person's meal is eaten by four people, which is competitive! Enterprises also run social, kindergartens, hospitals, bathhouses and other affiliated units, serving the employees regardless of cost. Such a corporate market is slow to respond, how can it make money?
Tang Jinbo: After I took over, I started production in January. Now I have started 8,000 spindles and 550 people. On March 20th, the first cloth was off the assembly line, and the products have entered the sales market, and the customers have reported good results. People are still the original factory, the equipment is still the original equipment, but the yarn count has increased by 20, reaching 80, the cloth has become delicate, and the product grade has gone up.
Highly valuable: When we opened 13,000 spindles, the logistics support and personnel of the agency reached 316. Now there are less than 30 people. In the past three people, the position of 5 people, the important unimportant post remuneration, the result is not strong. Now the post of 5 people is 2 people, and the income has also been opened.
Tang Jinbo: By the end of the year, Jilin Hengsheng's monthly output is expected to reach 100,000 meters, which can increase the number of employees. The scale of 13,000 ingots is still good in the northeast. It is still small in the country. We will expand to 20,000 spindles. At that time, Jilin Hengsheng will reproduce the glory of the former Dongchen--the leading textile industry in the Northeast.
Dongchen is alive again. For this rebirth, Hengsheng is not only paying for money, but also the idea. In a busy and orderly production workshop, there is such a banner: "In your own position, you are a talent. The attitude determines everything!"
For this rebirth, Dongchen stayers also paid a lot: in winter, in order to protect the equipment from freezing and solving the problem of heating, they carried out six months of production self-help; when the production was stopped, the workers did not rust, the workers carried out I cleaned the car twice, oiled, and maintained. Due to the effective care, the screws of the production line were not lost; there were not many machine parts in the small workshops of the four workshops. Consolidation, bankruptcy, divestiture of affiliated units, liquidation of this 40-year-old enterprise, there are many contradictions, but they are facing difficulties; in order to maintain this industry, workers who have a relatively large age and have no other expertise besides textile activities can still have opportunities to work. They visited more than 30 domestic and foreign companies and sought restructuring. Now, in addition to Dongchen and Hengsheng, the Northeast wool textile industry only has 5,000 spindles in a Liaoning factory. Keeping Dongchen's production capacity is equivalent to preserving the lifeline of the Northeast wool textile industry.

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