Hearing Liu Fu say later that he planned to buy the Sanbao Winery, Chen Sheng suddenly stood up. Chen Sheng knew that Liu Fu definitely had something going on today, but he didn't expect it to be such a big deal. Moreover, this wasn't just asking for his advice, it was asking if this matter could be accomplished and if he could be of help.
Chen Sheng didn't expect that the "child" he spoke of would have such an attitude right from the start. It was clear this wasn't a joke; he must have convinced Liu Fu to probe him.
Sanbao Winery was once the pride of Panshi City, its largest taxpayer. But that's all history. Now, Sanbao Winery is the city government's biggest burden. It's hard to say you don't feel bad seeing a good factory turned into this. Especially since Chen Sheng used to work at Sanbao Winery. Although he left the winery some years ago, he still has feelings for it. Over the years, he's thought of many ideas to help the winery out of its predicament, but to no avail. Whether it was allocating funds to buy equipment, or changing leaders and factory directors, they've tried everything they could. Sanbao Winery, on the other hand, has only gotten worse. Last year, it even stopped production, and workers' wages haven't been fully paid for almost two years. Some workers who were assigned to the factory last year haven't been paid at all. This year, production has completely stopped.
The city government no longer dares to allocate funds to Sanbao Winery. The economic benefits of the enterprises aren't very good, and the city government has more than just Sanbao Winery to save. Other enterprises are still producing, and at least can make some investment, while Sanbao Winery is a bottomless pit. Two years ago, to save Sanbao Winery, during the Chinese New Year, all government departments purchased Panshi Raw Liquor to distribute as welfare, but the liquor was poured out as soon as it got home. No one wanted to drink it, and no one dared to drink it. Who would dare to drink liquor mixed with industrial alcohol? This wasn't like ten years later, when the white liquor you bought was all alcohol-based. Right now, the wineries still have some aged good liquor. Since then, government officials have reached a consensus that Sanbao Winery is beyond saving.
By now, the Sanbao Winery is basically bankrupt. All the officials have been transferred away, and some workers with connections have also switched to other companies. Only thirty-odd workers are left, a few of whom, like Li Si, are new workers who were assigned to the factory just last year. Although the number of people doesn't seem like much, it's still a lot for thirty-odd households. These people have nowhere to go; they can't leave, they aren't paid, and they have nothing to eat. Every now and then, they go to the municipal government to protest. Each time, the government gives them a little money. As time goes on, the more the workers are owed in wages, the bigger a burden it becomes. The municipal government can't wait to get rid of it. Just because these people are constantly petitioning, the government can't wait to sell the factory, but no one wants to take over, and no one dares to take over.
Who in the city doesn't know how troublesome the Sanbao Winery workers are? Some workers are simply local thugs. That's why, even though Liu Fu isn't in the mafia, he has a disciple who is. Besides, in this day and age, those who are in the construction business have hundreds of migrant workers under their control. You can't control them without some skills, and nobody would believe you if you said you had no ties to the underworld.
Chen Sheng thought about it carefully. Liu Fu has money and isn't afraid of these local thugs, so it's actually possible. So he took a few steps back and forth, looked up, and asked seriously, "Brother, are you serious? You really plan to buy the Sanbao Winery!"
Liu Fu nodded and said, "Brother, I do have this plan. We've already discussed it at home. Although Xiao Jian isn't that old, he sees things more clearly than I do in some respects, and he speaks with great clarity. Why am I doing this? Isn't it all for the sake of the children? If this goes through, Xiao Jian's future will be secure. Of course, it's said that he's buying it, but in reality, I'll be the one managing things. You don't need to worry. I'm not good at being an official, but I'm not afraid of anyone when it comes to business. Besides, I have some money, and I'm not afraid of those messy situations. After thinking about it, I couldn't sit still, so I came to discuss it with you. You understand a lot, and besides, you're the mayor, so you can definitely make a decision on this matter! Xiao Jian told me that if this is successful, it will also be helpful to you!"
Chen Sheng nodded, sat down, lit a cigarette, and smoked while considering the matter. After a while, he said, "Brother, from the government's perspective, it's best if someone is willing to buy it. The government has wanted to sell it for a long time, but no one wants it. But from our personal relationship, I have to remind you of a few things. Brother, this is a mess. The city government has tried so many ways, but hasn't been able to save this factory. It wasn't easy for you to earn this money, and I'm worried you'll be dragged down. Brother, I'm not hiding anything from you, the government has allocated at least several million over the years, but it hasn't even made a splash. You can see the current situation. Let me explain the investment involved. Although there aren't many workers left, their salaries alone are forty to fifty thousand each month. As long as production starts, there will be utility bills and machine maintenance costs, which will amount to a million or so each year. Moreover, if you want to produce, you'll need to purchase raw materials, and you'll need inventory during the off-season. If production doesn't stop, the daily amount is a small fortune. Have you considered all of this?"
After speaking, he sighed. If there weren't so many difficulties, why wouldn't anyone have taken notice of the Sanbao Winery? Everyone knew it was a piece of juicy meat. Looking at Liu Fu, Chen Sheng remembered what Liu Jian had said about it being helpful to him if it was successful. That was the truth. He was currently a low-ranking deputy mayor. If this was successful, even if his ranking didn't improve, no one would underestimate him. But this wasn't a small matter; it was a major decision that would affect the livelihoods of hundreds of people. He couldn't hide these difficulties from Liu Fu; he couldn't cheat his old brother.
Before these things happened, Liu Fu and Liu Jian had already discussed them. Liu Jian's idea was that they should avoid bearing responsibility for past wage arrears and unpaid expenses if possible, and if they had to bear them, they should deduct them from the cost of purchasing the factory. As for production, they would talk about it after the purchase. The distillery mainly needs sorghum and corn, which are not particularly expensive raw materials. They are produced locally in Panshi, so there will definitely be no problems with production, and these costs are not a one-time investment. As long as the produced wine can be sold, revolving the money will not be a problem.
Hearing Chen Sheng ask this, Liu Fu nodded and said, "I've considered all of this. I have some savings, so it shouldn't be a problem. However, I have a few things that I haven't figured out, and these are my biggest concerns."
Chen Sheng's mood has now undergone earth-shattering changes. If at the beginning he only intended to help Liu Fu with an idea, now that he sees hope, he can't wait for the matter to be settled immediately. Chen Sheng is currently a low-ranking vice mayor. If this matter is successful, it will also be of great benefit to him. This is a huge political asset. He has shed a burden that no one could solve. Who wouldn't thank him? He could even immediately enter the field of vision of the municipal party secretary and the mayor. This one thing alone could allow him to go a step further, from the vice mayor in charge of education to the vice mayor in charge of industry. The difference and power here are huge.
Hearing Liu Fu say he had some concerns, he asked, "Brother, what's the matter?"
Liu Fu said, "One is the wages and expenses that Sanbao Winery previously owed. I can't take those on. If I do, I'll collapse immediately. Forget about production; just paying off that money will cost me even my original investment."
Chen Sheng laughed, "Brother, that's not a problem. The previous debts can't be transferred to you. In reality, it's not that the city government can't afford to pay off Sanbao Winery's debts; it's just that new debts are being generated every day, and the city government can't keep up. If the debts are all paid off, you still have to pay the workers' wages, right? If wages are paid, will the factory produce? If it produces, more funds need to be allocated. It's become a vicious cycle. If you're willing to take over, the city government will definitely allocate funds immediately to pay off the debts and completely get rid of this burden."
Liu Fu had already considered this point, so there were no surprises. This was indeed something Liu Jian hadn't thought of. In Liu Jian's view, buying a factory meant taking on the debts as well, otherwise it would be embezzling state-owned assets. He hadn't considered that the country was currently undergoing reforms, and everything was being done by feeling our way across the river – there were no fixed standards or specific administrative regulations. For the Panshi Municipal Government, the priority was to get rid of the burden. As for the so-called embezzlement of state-owned assets, that concept didn't exist yet. It wasn't until the state-owned enterprise reforms were nearly complete and the burdens were gone that someone would raise that issue. Anyone who said that now would be obstructing reform, and no one could bear that responsibility.
Liu Fu continued, "Secondly, I'll take over as many workers as there are now. None of the officials will stay; they'll all be transferred away. I can't abandon these workers, otherwise they'll have no way to make a living, and if they cause trouble, it'll be difficult for all of us. I'll take a hit and take them all on. In the future, staffing will be my own business. I'll decide who to hire, and the municipal government can't place anyone else there. Otherwise, a bunch of people with connections will come in, occupying positions without doing anything, and the factory won't be able to operate."
Chen Sheng was mentally prepared for this and nodded, saying, "That makes sense. That's not a problem either. Once you buy the factory, it's yours, and how you operate it is your business. The municipal government won't interfere or ask questions. And you're helping us a lot. I was just wondering what to do with the workers who haven't left the factory. I don't think the municipal government even thought you'd be willing to take them on."
Liu Fuxin thought to himself, how can I start work without workers? His son is right, the most important thing in the 21st century is talent. Those old workers are treasures, how can I brew good wine without relying on them? Since I'm going to need workers sooner or later, why not just keep them? As for those petty thugs, with Li Si around, they won't cause any trouble. I can figure out how to settle them later. There are so many positions in the factory, not to mention just security guards, which will require quite a few people. So keeping these people is not a problem at all, and it will also give me a good reputation, helping the municipal government solve this problem, making the municipal government feel like they owe me a favor, which will make things easier in the future.
So he continued, "The third thing is taxes. I will definitely produce after taking over the factory, but taxes are a big problem. If I pay too little, I'm afraid some people will have objections. If I pay too much, I'm afraid I can't afford it." In fact, this question was asked at Liu Jian's request. Liu Fuxin hadn't thought so much, but Liu Jian was afraid that the government would slaughter the pig after fattening it. Liu Jian had heard too many stories of people being fattened up and then slaughtered in later generations. If the tax is too high, he would rather not buy the factory, otherwise he would be working for the government for nothing.
Hearing this, Chen Sheng laughed and said, "That's not a problem at all. You're willing to take over Sanbao Winery, does the tax bureau still want your taxes? I can guarantee you three years of tax exemption, I can definitely do that."
Liu Fu also smiled along, as this wasn't what he originally intended to ask, and he didn't take it seriously. However, what follows is the main point, so he said with a somewhat questioning tone, "This last one is the most important: at what price will Sanbao Winery sell to me? You know, brother, this is the real problem. If it's too expensive, I can't afford it, and if it's too cheap, I'm afraid the municipal government won't sell."
Hearing this, Chen Sheng felt that this was Liu Fu's biggest concern and the biggest problem. He nodded and said, "Yes, this is the biggest problem."
Although Sanbao Winery is about to close down, the municipal government has invested a lot of money in it over the years. If it's too cheap, some people might stand up and refuse to sell it. After all, the winery has been operating for many years, and many people have deep feelings for Sanbao Winery. But if it's expensive, the winery isn't worth it. The most valuable equipment hasn't been used for two years. Besides the equipment, what else of value does Sanbao Winery have? The workshops and factory buildings are also very old. This is the real thought of Chen Sheng, Liu Fu, and others. As for the land, they haven't considered it at all. Now is not the time to make real estate a pillar industry, and land is very cheap.
This is also the biggest difference between them and Liu Jian's way of thinking. In Liu Jian's view, as long as the factory is bought, not to mention anything else, the eighty acres of land occupied by the Sanbao Winery alone is worth several million. You have to know that this is in the city center. If you survive a few years, when the country starts real estate development, the average price of houses in the city center will be seven or eight thousand yuan per square meter. Now the buildings are only five or six hundred yuan per square meter. The profit here would make Liu Jian drool. Liu Jian's plan is like this: if the winery doesn't operate well and doesn't make money, he will wait for the land price to rise and build buildings, and he will still make a lot of money. It can be said that as long as this piece of land is acquired, he won't have to worry about food and drink in the future.
Chen Sheng thought for a moment and said, "Brother, leave this matter to me first, and I will sound them out for you. Speaking of this, brother, you are solving problems for the municipal government, not just seeking personal gain. Besides, the Sanbao Winery has been out of production for so long, and the equipment is already aging. It is estimated that a lot of it is scrap iron. No one can spend a lot of money to buy some scrap iron back, right?"
Hearing Chen Sheng say this, Liu Fu's heart also relaxed, knowing that the price would definitely not be too high in the end. Now it depends on the opinion of the municipal government. He knew that there were some things that Chen Sheng wouldn't say, but this hint was already very obvious, and Liu Fu didn't ask any further. The two then drank tea for a while, and Liu Fu went home.
Entering the door, he saw the mother and son sitting in the living room, knowing they were waiting for his news. Liu Fu smiled and explained what had happened. Mother Liu was very happy, feeling that buying it this way was much better, but Liu Jian, who was beside her, was a little dumbfounded. Liu Jian smiled wryly, thinking: have his father and son become part of encroaching on state-owned assets? He just didn't know what price they would ultimately buy the Sanbao Distillery for, hoping it wouldn't be a dirt-cheap price. Liu Jian was afraid that the government would come and settle the score in a few years. He also thought that if nothing unexpected happened to Chen Sheng, he would be mayor and then secretary, so there shouldn't be any problems in the future.
Liu Jian hesitated and asked, "Dad, how much money do you think we'll have to spend to buy this factory?" Liu Jian originally thought that buying the Sanbao Distillery would cost a lot of money, and the family might even have to take out a loan. He had already planned to persuade his parents to buy the factory even if they had to take out a loan, but now it seemed like it wouldn't cost that much at all.
Liu Fu thought for a moment and said, "According to what your Uncle Chen said, several hundred thousand, it won't exceed one million. He'll give me an accurate figure in a few days. When that Li Si comes, remember to have Xiao Wu tell me, I'll talk to him."
Liu Jian nodded and said, "Got it." Some things are more effective when Liu Fu handles them. What he and Li Si say is not as effective as what his father says. He's still too young. But Liu Jian wasn't worried. No matter who took the lead, as long as the job was done, that was all that mattered. Besides, why would he compete with his father for credit? But hearing the price, Liu Jian couldn't sleep after returning to his bedroom. Maybe hundreds of thousands was a large sum now, but in just over ten years, an average family would have that much savings. Liu Jian had only one feeling: he was picking up money.
A few days passed, and the matter seemed to have faded away. Liu Fu hadn't mentioned it at home, but Liu Jian could still see his father's anxiety. He would go to bed very late at night, chain-smoking cigarettes. He hadn't thought about these things before, but now Liu Jian had stirred up his ambition, and the more he thought about it, the more he felt the matter was reliable, and the more anxious he became. However, years of hard work had taught Liu Fu to be patient, and he kept himself from calling Chen Sheng.
Once, Liu's mother urged him to ask, and Liu Fu smiled and said, "There will be news when the time is right. Don't worry, just wait for Chen Sheng's news."