Updated: 2012-09-14

The district standing committee meeting quickly passed the resolution to recommend Meixi Iron and Steel Plant to carry out the pilot work of equity reform. Together with the equity reform plan submitted by Meixi Town Government and Meixi Iron and Steel Plant, it was submitted to the Municipal Planning Commission again.

As the first pilot enterprise for equity reform in Donghua City, Meixi Iron and Steel Plant received an official approval letter from the Municipal Planning Commission on May 18.

After obtaining the access certificate for equity reform, the equity reform began quickly, and Meixi Iron and Steel Plant was re-registered by Meixi Iron and Steel Group Co., Ltd.

Yexin Bank provided equity mortgage loans totaling 8 million yuan to Zhao Dong, Qian Wenhui, Wang Kangsheng, Xu Xiting, Xu Wendao, Pan Cheng, Hu Zhigang and other group management and core engineering and technical personnel, respectively, injected them into Meigang Group, holding 10% of the shares.

Overseas private company Zhonghe Investment injects foreign exchange funds of US$1 million and holds 11% of the shares.

Including He Qingshe, Li Feng, Huang Xinliang, Guo Quan, Chu Qiang, Chen Tong and other town government administrators and some employees of the steel mill also raised loans as much as possible and participated in this equity restructuring, with a total holding of 7% of the shares.

The town asset office represents Meixi Town, holding 72% of the shares of Meigang Group, ensuring its controlling stake in Meigang.

The reorganized Meixi Steel Plant has a total assets of 160 million, a net assets of 80 million, and its debt ratio has also dropped from the previous 70% to 50%. More critically, the reorganized Meixi Steel has a cash reserve of up to 36 million, which has prepared relatively sufficient funds for the subsequent expansion of power supply and the technological transformation of production lines.

After the reform, a shareholders' meeting was established. Shen Huai represented Meixi Town as chairman and general manager. Zhao Dong, Qian Wenhui and Wang Kangsheng were respectively deputy general managers, Xu Xiting was the group's chief engineer, and other management teams also made corresponding adjustments in their position names.

In addition, Guo Quan represented the Town Assets Office and entered the board of directors; Chu Qiang entered the board of supervisors as a shareholder representative.

According to Shen Huai's design, the equity funds raised this time are not open to external personnel, but Chu Qiang still has to be a government staff member. The Chu family has invested a total of 400,000 yuan in shares, which is considered the largest individual shareholder except for the steel mill management.

Chen Dan also used his younger brother Chen Tong to invest 80,000 yuan in the reformed Meigang Group, which held one thousandth of the shares, and could even be ignored.

By late May, the administrative regions of Hetang and Meixi towns were adjusted, and the Lishe and Caijiaqiao villages were integrated into Meixi Town and Jianggang Wharf projects, and approval documents were also obtained from relevant departments of the municipal and district governments.

After the reform, Meigang has a cash reserve of more than 36 million yuan, but they will mainly invest in the renovation of electric furnace steel production lines and the expansion of generator sets to ensure that the monthly production capacity will increase to 15,000 tons before September.

Only in this way can Meixi Steel achieve its goal of exceeding 400 million this year's output value.

At the same time, Yexin Bank will provide Meigang with an additional 20 million yuan loan for the early requirements of freight terminal construction.

As of the end of May, Meixi Steel has achieved stable high profits for two quarters and officially entered revitalization; and through equity fundraising, the overall debt ratio has also dropped below the safety line, and it is natural to add additional loans to financial institutions for rapid expansion again.

For banks, only by absorbing savings and issuing savings as loans can they obtain stable interest rate spread income. In order to control risks, banks are generally willing to lend loans to enterprises with stable profits.

Other financial institutions responded half a beat slower. Sun Yalin was hanging out with Chen Huai all day long. After Meixi Steel's financial indicators met the requirements, Yexin Bank quickly increased its credit limit to Meixi Steel.

The steel industry is a capital-intensive industry with large production scale and high labor efficiency. If you want to develop rapidly, the prerequisite is to have financial capital support.

With Yexin Bank providing 20 million loan support, the freight terminal and the Meihe Highway project connecting the terminal and Xiamei Highway has also quickly entered the project implementation stage.

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In early June, it was the yellow plum season, and rain was everywhere every now and then, which had a certain impact on the development of the entire project. After a new rain, Shen Huai took a bus from the muddy soil to the dock project site.

Shao Zheng looked at the newly washed car body yesterday and was covered in mud. He shook his head and sighed. Following Chen Huai, Huang Xinliang climbed up the river embankment with three steps; Wang Kangsheng and the engineers rushed here from elsewhere.

Meixi Steel currently has to carry out two projects at the same time, both of which are large projects:

Zhao Dong is responsible for the expansion of the production line, and Jiang Kangsheng is responsible for the cargo terminal.

I met with Wang Kangsheng, Zhu Li and the project leader of the Municipal Port Construction Company. Chen Huai accompanied him to watch the scene together.

"When will Meixi Town move farmers out? Our engineering team will enter the site on a large scale!"

The freight terminal and yard engineering projects are handed over to the general contracting of the Municipal Port Construction Company, and the civil engineering and earthwork projects are then subcontracted by Zhujiang Construction.

The project manager sent by the Municipal Port Construction Company is Ren Wei, who is familiar with Zhu Li, and Zhu Li often subcontracts the engineering projects of the Municipal Port Construction Company; this makes it impossible for the project team to enter the state without much running-in time after the project team is established.

Under the embankment, workers at Zhujiang Construction are using light steel keels and colored steel tiles to build a temporary project management office.

Of course, the 100 acres of land used in the wharf and farmers along the Meihe Highway need to be moved out before the engineering team can officially enter the site.

The administrative area has just been adjusted, and Lishe Village has been incorporated into Meixi Town for a few days.

Hetang Town wants to share the Meitang Highway, but is unable to bear the responsibility for demolition and resettlement. If these things are thrown over, Meixi Town must be resolved quickly to pave the way for the project development; however, Hetang Town also cooperated with some publicity work in the early stage.

The town originally made a decision on demolition and resettlement, and ordered the village to cooperate in the implementation.

However, considering that Lishe Village has just been incorporated into Hetang Village, the rigid administrative orders may cause the psychological difficulties of foreign households in Lishe Village, Chen Huai came here in person this time to discuss resettlement work with cadres in Lishe Village. He planned to lead the demolition work with Meixi Steel, and cooperate with the town.

Before the agreed time was yet, Song Xiaojun, the village director of Lishe Village, rushed over with two other village cadres on bicycles. It was difficult to walk on the road, and the tubes of the legs of the trouser legs were covered with mud and water.

Song Xiaojun is a burly man. He has been transferred from the army and returned home. He started as deputy branch secretary. He was only elected as the village committee director this year. He is just over 30 years old this year.

Chen Huai has only been in contact with people from Lishe Village in the past two days. He doesn’t know what Song Xiaojun’s temper is. He stood by the construction site and watched Song Xiaojun and the others come over, shook hands, and said directly: “Lishe Village now does not even have a decent gravel road. Meihe Highway and freight terminal will directly open the contact between Lishe Village and the outside world. Your work must also be accelerated..."

"We know this. The town has issued a document that we have been working in villagers overnight these days. Most of the villagers are willing to cooperate with the demolition work. However, if we have compensation and resettlement, we hope to re-approve the homestead building..." Song Xiaojun said.

In the domestic officialdom, the so-called "one-level official crushes people to death" refers to middle and upper-level groups with deep interests, while at the grassroots level, the authority of the superiors is relatively weaker.

Village cadres in poor villages like Song Xiaojun are not as good as those who earn from working outside, and they have no chance to make money and their wealth is innocent. If Chen Huai uses the hat to suppress him, these village cadres have a hot temper and may quit their butts.

It’s hard to do grassroots work.

"The entire Meixi Town must be re-planned, and townships and village cadres must also have a development vision," Chen Huai picked up a branch, squatted on the mud, first drew the Meixi River and Zhujiang River horizontally and vertically, and then drew the Xiamei Highway and the Meihe Highway to be paved, pointing it to Song Xiaojun and the other two village cadres. "The two sides of the Meihe Highway will be newly planned industrial areas. From the industrial area to the east bank of Meixi River, it will be the newly planned residential areas. From the planned industrial area to the west to the east bank of Meixi River, it will be only four square kilometers. Today, the residential land will be re-registered and the houses will be built in scattered. In two years, the economic development will be carried out to build residential areas, and then demolished. Who will the villagers point to at that time?"

"Secretary Chen, we have thought about the truth you said," said Song Xiaojun. "However, Lishe Village is nestled in the corner. Except for young people who go out to work, most of the villagers who stayed behind farm for a living. Building roads and wharfs is good for a long time, but the demolition work is about to begin, and the livelihood of villagers who rely on farming for a living will immediately become a problem. This is also the most difficult place to do work."

"What are you worried about? I know; I came to you just to talk about this," said Chen Huai. "The town discussed it. Only by solving the worries of the farmers who have been demolished can the demolition work be carried out smoothly. Now three suggestions are put forward: First, those with high school and technical secondary school education or above can be recommended to work as workers in steel mills; second, I suggest that Lishe Village establish a labor company to cooperate with Zhujiang Construction, Meixi Steel, Ziluojiasha and Town Real Estate Company to digest more surplus labor; third, the country is establishing a basic social security system, and this time the town plans to specifically pull out a part of the land compensation funds to establish a pension fund account for the farmers who have been demolished..."

The total area of ​​Lishe and Caijiaqiao villages is only more than 8,000 acres, which is the last space for Meixi Town to develop southward.

Chen Huai's ambition is to develop Meixi Steel into a super-large steel enterprise with tens of millions of tons. However, the total steel production in Huaihai Province in 1993 was only more than three million tons, and it is obviously not the time to announce this majestic plan.

Chen Huai has only announced the development plan for Meixi Steel's three-year production capacity of 500,000 tons, including freight terminals and power stations. It is enough to obtain 600 acres of land from Lishe Village.

However, to build a million-ton electric furnace steel base on the north bank of Zhujiang, we must collect all the land in Lishe Village in the form of industrial land reserves. This is something we will gradually do in the next three to five years.

Not only can we re-allocate and resettle farmers in Lishe Village, but we can’t settle down in the residential area of ​​villagers, and even build Caijiaqiao further west, so that we can be consistent with the plan, so that we will not be built this year and demolished in three to five years. Even if it doesn’t matter if we waste a little, the villagers cannot withstand such torture.

"The town has discussed it and will consider merging Lishe Village and Caijiaqiao into an administrative village in the future," Chen Huai and Song Xiaojun revealed the town government's future construction plan. "The newly planned residential area is in the western area, and the construction of the Lishe villagers' concentrated residential area will also be set a piece of land preparation near the Caijiaqiao Village Neighborhood Committee. In this way, as long as the town builds an asphalt road south along the east bank of Meixi River, Lishe and Caijiaqiao can be connected to the town at the same time..."
Chapter completed!