The rise of nanometers

Chapter 59 Big Project (Additional Updates)

Quancheng, Shandong Province.

Zhang Guanghe personally received Li Feiyang and his party.

Zhang Guanghe, the plenipotentiary representative of Shandong Province, did not drag his feet. After lunch, he started to get down to business.

"Mr. Li, we generally agree with your company's previous plan, but some details need to be discussed."

Li Feiyang nodded. Even if Zhang Guanghe didn't mention it, he would take the initiative to raise this issue and come up with a rough and ambiguous cooperation plan. That would be harming others and himself.

"Director Zhang, this aspect really should be discussed in detail."

Zhang Guanghe got straight to the point and took out a document: "This is the situation of various water companies in Shandong Province. If the Shandong Water Company is established, how should the employees of these water companies be placed?"

After taking the file and flipping through it, Li Feiyang focused on a few data.

There are 16 water companies with a total of 15,341 employees, and the losses vary greatly. Last year, the fiscal subsidy was 5.2 billion (loss), and the total annual turnover was 19.7 billion.

Then there are some rough information about each water company, such as how many water pipelines, sewage treatment plants, water plants, charging points, and office buildings it has.

The last part is the shareholding structure of each water company and whether there is private or foreign investment.

Li Feiyang pointed to the number of employees on the document:

"I believe Director Zhang also knows something. Our company has streamlined some employees in the water contracting in Tuocheng and Rongcheng. If there are no accidents, the total number of employees of the Lu Provincial Water Affairs Corporation will be reduced to about 7,000."

After cutting out nearly half of the crop at once, Zhang Guanghe also hesitated: "Is seven thousand too little?"

"Based on the current operation of Tuocheng Water, this ratio of employees is more than enough. As for the laid-off employees, we are not unkind. They will be transferred to other subsidiaries after passing training. If they do not agree to the transfer arrangement, they can only receive one Resign with a compensation package.”

As for the management of the water company, both parties have acquiesced not to discuss it, because they have learned from the experience of Tuocheng Water.

They can either take the initiative to resign as soon as possible so that everyone can get together and part ways; if they don't want to be dignified, Li Feiyang doesn't mind helping them look decent.

As for Zhang Guanghe, he also knew about the internal problems of the water company. Not to mention the poor quality of tap water, there must be many problems in those large and small projects. The losses in the books for years have made Lu Province feel sad and helpless.

Since these guys don't know how to restrain themselves, let's just pull the plug and directly hand over the management rights to Blue Age. Blue Age, which is responsible for its own profits and losses, will not allow these big rats to continue to enrich themselves internally.

"The next question is about environmental sanitation contracting. The price is too high."

According to the charging standard of the Blue Era, the per capita fee is 100 yuan per year. The total population of Shandong Province is as high as 90.79 million. If charged according to this standard, the annual contracting cost will reach 9.079 billion.

Obviously, Zhang Guanghe would never agree to this price.

After some bargaining, Blue Age made huge concessions, lowering the price to about half, with an annual contracting fee of 4.5 billion.

Through the supplementary agreement, the sanitation contracting fees are bundled with the revenue of the water company, which is similar to the model in Chengdu. The revenue of the water company offsets the sanitation contracting fees by refunding more and subsidying less.

Then there are the contract period, environmental sanitation standards, business division, etc., negotiated one by one. Both parties are trying their best to strive for the best interests. They are also as detailed as possible on the terms of cooperation, taking many situations into consideration to avoid future disputes between the two parties.

The last part of the issue, regarding the Daocheng sewage treatment plant contracted by Veolia and other parts contracted by private enterprises, has been shelved for the time being.

It took more than a week of talks before the package was signed.

When the two parties announced the cooperation plan and signed the cooperation memorandum, it caused shock in various cities in the country.

Not only because the contract between the two parties involves projects worth tens of billions, but more importantly, the cooperation covers the entire Shandong Province.

Many private enterprises also saw environmental sanitation and water affairs for the first time. However, after they conducted in-depth research, they found that it was really difficult to achieve profitability.

The profit model of Suiren Company is almost difficult to copy because it contains many technical problems.

Suiren Company integrates the five fields of sanitation, gas, recycling, water affairs, and pollution control to form an interlocking industrial chain. Even if one or two links suffer losses, profits can be achieved from other links.

If we only focus on one link, if we want to achieve profits in sanitation and water services, I am afraid we can only achieve meager profits by squeezing sanitation workers and raising the retail price of tap water.

By squeezing sanitation workers and raising the retail price of tap water, this method with no technical content is completely uncompetitive in the face of Suiren Company's high salary and benefits and the lack of increase in the retail price of tap water.

And each city is not blind and has better choices, so it is natural to choose Suiren Company.

Many self-aware companies suddenly lost interest. With this free time, they might as well go mining, sell game skins to point cards, and make loan sharks.

In particular, the staggering number of sanitation workers is really not something that ordinary companies are willing to accept, not to mention the high salary and benefits of Suiren Company. If other companies do this, they are probably not far from bankruptcy.

Taking over the water and sanitation projects in Shandong Province, Suiren Company's expansion this year has basically reached saturation. If it expands to other cities, it may cause indigestion.

The task at this stage is no longer to open up the market, but to consolidate the market, digest the captured areas, and allow these areas to quickly form their own hematopoietic capabilities.

Then, by creating a model, we can attract other regions and proactively seek cooperation with Suiren Company, and then copy this model to all parts of the country.

Suiren Company's official website immediately issued an announcement stating that it would not expand business in other cities in the near future.

The next batch of partner cities will have to wait until March next year.

Faced with this sudden news, Pengcheng was also confused. As the first city to visit Shantou and the United States for inspection, in the end, Tuocheng and Lu Province were the first to arrive. It would be strange not to be depressed.

However, other cities are not too anxious about this matter, because although Suiren Company has invested in many cities, the current operation situation still requires further observation.

Let Tuocheng, Rongcheng, and Shandong Province test the water, and then make a decision based on the development situation.

Suiren Company, which was planning to settle down, also began to work hard.

First, integrate local water companies, streamline personnel and institutions, upgrade water plants and sewage treatment plants, and then divert and train employees.

At the same time, we took over sanitation workers from various places, established branches of the Blue Era, and built comprehensive recycling plants, employee dormitories, and supporting facilities.

When you are busy, time flies very fast.

November 11th.

Huang Xiuyuan, who rarely put down his scientific research work, appeared in his office and summoned the general managers of various departments and the presidents of various subsidiaries to prepare for an internal meeting on development strategy.

At the same time, it was also to deal with some problems. Although he left many things to Lin Baijie, Huang Weichang and others, he could not stop appearing in the company.

As the chairman, he must communicate with employees from time to time, and even take time to visit the company's grassroots to understand the real situation of the company and avoid being ignored by those below.

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