African Entrepreneurship Records 2

Chapter 1405 Industrial Transfer
De Laine's words were certainly not groundless. The East African government did intend to take this opportunity to ease domestic social conflicts, and one of the most important purposes was to reduce the living space of the Labor Party in East Africa.

The current development of the Labour Parties in various European countries has, to a certain extent, served as a warning to other countries. If they allow the so-called "market behavior" to develop disorderly and do not change themselves, the Labour Party will help them change in the future.

Although Gori Sean was very reluctant, he also understood this simple truth. He could only pretend to be helpless and said, "Okay! I can only blame myself for my bad luck. After all, in order to support the country's work, I can only sacrifice some of my own interests. However, the transformation of the factory also requires a certain amount of time. Mr. Investigator, can you give me some time?"

Delain did not reject Gorisawn's request immediately. After all, Gorisawn's attitude was much better than before.

So, after thinking for a moment, Delain said to Director Gorishon, "I can help you fight for it with the higher-ups, but this is your last chance. If you want to pretend to obey but secretly disobey like before, it will definitely not work. The higher-ups are serious this time!"

Regarding Delain's willingness to help, Gorishon seemed to be serious and assured: "Of course, the scale of our factory is not small, so the transformation will take time. We will definitely be able to complete the follow-up work within the next six months."

Delain interrupted, "Mr. Golishawn, I didn't say how long the grace period would be, but two or three months should still be feasible, so you should hurry up and prepare!"

After that, Delain left the office of Gorishon Electric Appliance Factory with his briefcase, and prepared to find the next "unlucky guy" along the list.

After watching Delain leave, Gori Sean's face immediately changed and he cursed, "What the hell, bah!"

At this moment, the door of the office was suddenly opened, which scared Gory Sean. He thought that the unlucky Delain was back again. As a result, when he looked closely, he saw that it was his younger brother O'Keen who walked in. His tense body collapsed on the sofa, but his heart was still beating strongly. He breathed a sigh of relief.

At this time, O'Keen looked outside the door with a sly look in his eyes, then turned his head back into the door frame and asked Brother Sean, "Brother, who was that guy just now? Which department is he from? What is he doing in our factory?"

O'Keen is the third younger brother of Golishawn and also the workshop director of Golishawn Electric Factory. Golishawn Electric Factory is a family business, which is normal. After all, in a country like East Africa where the market economy is relatively unsound, nepotism is a common phenomenon in private enterprises in East Africa today.

Of course, some companies with more advanced concepts have already begun to transform their management. However, for relatively low-level industries like the Gorishon Electric Factory, the management does not need to be too detailed.

Gori Sean did not answer his question directly, but said unhappily: "How many times have I told you to call me the factory director in the factory, not the big brother. Also, you have to knock on the door when you enter my office. I was almost scared to death by you, a bastard."

O'Keen completely ignored Gorisham's words. He unconsciously sat down opposite Gorisham, flipped through the tea box on the table, and poured himself a cup of tea.

Then, he said lazily, "I just came to check the situation. That guy just now looked difficult to deal with. He had an official vibe."

Gorisean agreed with the second half of the sentence. He explained, "The guy just now is an investigator from the Market Supervision Bureau. He is indeed difficult to deal with."

O'Keen said, "Is it too hard for you, brother?"

Gori Sean said: "It's not that difficult, but the city government has made some big moves recently. I used to think it was just a lot of noise but little action, but this time it looks like it might be real."

O'Keen had no idea what Goli Sean was saying, but his curiosity was aroused, so he asked, "Brother, you know we are stupid, so why don't you just tell us what the city wants to do?"

O'Keane is just a workshop director, and his main job is to supervise the workers. This is also the arrangement that Gorishon made for his younger brother, because he also knows that O'Keane has no special talents.

In fact, O'Keen is not very serious about the simple job he is doing now. He often slacks off and goes to Gorishen's office to slack off or sleep in.

Therefore, Gorisawn had no way to deal with his younger brother O'Keen, and it was enough for him to just ask him not to make trouble.

Like many East African families, Gorishon's family is large. In his generation, there are more than a dozen brothers and sisters in the entire family, and he has two biological brothers. He is the eldest and has two younger brothers and two younger sisters.

From Gori Sean's family, we can see the reason for the explosive population growth in East Africa in recent years. The older generation of East Africans are generally very fertile.

Although it was a headache for O'Keen, he still patiently explained: "Isn't it the 5th Five-Year Plan that emphasizes the high-quality development of the national economy? The city government's investigators believe that our factory's current technology and equipment are outdated, so they urged our factory to upgrade."

Hearing what Gorishon said, O'Keen was very confused: "We pay taxes to the city, and they still care about our machine problems?"

Gori Sean said, "That's natural. Do you think everyone is like you, the kind that can be replaced at any time? Our factory may seem to be quite large, but in reality we have no skills or talents. We can only do the simplest parts processing work. This is what I learned when I was an apprentice in a state-owned factory."

O'Keen said with a resentful look in his eyes: "Brother, you might as well just say that I'm a waste. I'm not a petty person."

"Ahem..." Gori Sean said awkwardly, "In a word, it's pretty much the same. You just need to know that our factory is not as important as you think. After all, in the eyes of the government, we are not irreplaceable."

"The products we produce are mainly purchased from others with ready-made machinery and equipment, and then we hire workers to help us do the work."

"If that's the case, it means we don't have core technology. This kind of simple factory can basically be built with money, so it's easy for others to take advantage of us."

"Of course, this is not the main reason. The deeper reason is that the city wants to eliminate backward factories like ours. They must either move out of Cabinda or stop production."

The latter was obviously not within the scope of consideration for Gorishon, after all, he still relied on this factory for his livelihood! O'Keane was also very clear about this simple truth. After all, if the factory was closed, he would lose his position as workshop director, so where could he find such an easy job?

So, O'Keen probed, "Brother, do you mean to move this factory away, or what?"

Gorishon said: "There are two options at present. The first is to carry out comprehensive rectification of our factory in accordance with the requirements of the municipal government. The second is to move the factory to another place so that the city of Cabinda can no longer control us."

O'Keen asked doubtfully, "Are the policies different across the country? Are the policies different when you leave Cabinda and go to other places?" In response to his brother's doubts, Gorishon explained, "There are still differences. For example, Cabinda is one of the most economically developed regions in the empire, so the situation must be somewhat different from most parts of the country."

"My small factory is really insignificant in Cabinda. After all, there are too many companies in Cabinda. They don't need one like us. But for those economically underdeveloped places, having a factory is already very good. After all, they have no choice."

O'Keen naturally understood what was said, and he said to Gorishon, "So, big brother, do you mean to move the factory to another part of the country?"

"But this is difficult! Our customers are all here, and it is impossible for the workers to move with us. When we move to the new place, we will have to train a new batch of skilled workers. It is better not to move! After all, Cabinda has a developed economy. The worst that can happen is that we can just spend a little more money to replace the equipment."

What O'Keane values ​​most is the developed economy of Cabinda. He doesn't want to follow his elder brother to the remote countryside. How could other places be more interesting than Cabinda?

Here, Okeen naturally eliminated other big cities in East Africa. After all, the land prices in big cities are expensive, and the eldest brother will definitely not waste this money. Instead of using the money to buy land and build factories in big cities, it is better to directly replace equipment and continue to stay in Cabinda.

All in all, O'Keane was not very willing to go to backward places, as it would be inconvenient for his own life and consumption.

Gori Sean said to him, "Huh, why do you think I want to move the factory? Don't you see the machinery and equipment in our factory? They are 70% new and can be used for another ten years without any problems. I replaced them at the government's request. What a waste."

"These machines and equipment didn't come by wind, but were purchased with money. I have just used them to make back some of my investment, but I don't want to discard them directly. I must make more money to make more."

"As for the problems you mentioned, I am also very clear that in fact, domestic law enforcement is not a good option. After all, under the national policy, even if there are differences in the enforcement strength and local regulations of various places, they will eventually develop in the same direction."

"Moving the factory to these places is just a way to prolong its survival. Besides, our raw material suppliers are also in Cabinda, so even if the factory is moved, it can't be too far away from here."

The Gori Sean Electrical Factory produces electrical parts, but in fact there are many upstream manufacturers. Therefore, the development of the electrical factory must also take into account the upstream suppliers. If the distance is too far, it will definitely not work.

Although transportation in East Africa is now more convenient and developed, Gorishon does not want to pay the freight. Moreover, he must also consider the distance to the market, which may result in additional freight costs, unless he can open up a new market in a new place, which would be even more uneconomical. Therefore, the factory cannot be too far away from Cabinda.

Gorishon's words completely confused O'Keane. He asked, "This won't work, and that won't work either. It's too much trouble. What do you think we should do, brother?"

And Gori Sean said confidently: "This is the difference between you and me, you only think about the domestic situation, while I have my eyes set on foreign countries."

O'Keen was surprised and said, "Abroad! Brother, are you planning to move the factory to the United States or Europe?"

Gorishon gave O'Keen a cold look and then said, "You are such a fool. Moving to such a far place will only cause cost problems. We will have more troubles. After all, the suppliers and markets are all in China. Besides, a powerful dragon cannot defeat a local snake. If we go to the United States and Europe, I am afraid we will just be delivering snacks to others."

Then, he changed the subject and said somewhat complacently: "The foreign country I'm talking about is far away in the sky, but it's right in front of us. It's the Black Point City next door."

After hearing this, O'Keane suddenly realized: "It turns out that this is Belgian territory. I thought it was Europe and America!"

Gorishon ignored his surprise and analyzed: "The tax in Pointe Noire is not high, and the management is loose. The land price and labor cost are also relatively lower than those in East Africa. Of course, the most important thing is that it is next to Cabinda."

"It won't cost us much to move the factory to Pointe Noire, so these machines can be used for many more years. At the same time, Pointe Noire is close to Cabinda, and has convenient rail and road transportation, so it's very convenient for us to purchase raw materials and transport finished products."

“Also, there are no tariff issues between Pointe Noire and East Africa, which saves us a lot of trouble.”

Pointe-Noire is the administrative center of the Belgian Autonomous Region of the Congo, and Belgium has joined the Common Market for Eastern and Southern Africa dominated by East Africa, so Gorishon realized that investing in Pointe-Noire would offer better conditions than investing in the country.

Of course, East Africa will not suffer any loss from the construction of this common market. East African products can also use this springboard to enter Belgium, or then enter Europe from Belgium.

As for the choice of enterprises, the Autonomous Region of Congo is right under the nose of East Africa, and they cannot run away even if they want to, not to mention that they cannot get rid of East Africa’s complete industrial system and large domestic market.

Just like Gorishen, it is impossible for him to set up his factory in Europe and the United States. Even if it is abroad, it can only be in the surrounding areas and countries of East Africa, and the place cannot be too backward. After all, his factory has certain requirements for electricity, infrastructure, etc.

Therefore, Pointe Noire, a foreign city with a certain economic and industrial foundation and close to East Africa, became Gorishon's best choice.

Pointe Noire and Cabinda can be said to be sister cities. Both are located in the north of the Congo River, only a few dozen kilometers apart. There are basically no obstacles to the exchanges of people and trade, so it is most appropriate for Gorishon to move the factory to Pointe Noire.

Of course, although Gorishon thought he was very smart, there were actually some things he had not considered enough. After all, the Belgian government of Pointe Noire was obviously not a place for charity, and the taxes they should collect would not be reduced.

What's more, nowadays, the world's industrial capacity is increasingly in excess. He holds on to his own factory and does not want to make any changes. He can only continue to compete with other European and American manufacturers. However, he is unwilling to upgrade the industry. After others adjust, their costs will only be lower than his. In this way, profits will become lower and lower, and he may eventually be washed away on the beach by the waves of the economic crisis.

At the same time, East Africa also cracks down on products that do not meet national standards. Even if he moves the factory to Pointe Noire, it will not change this, which means that he will lose many of his original domestic customers.

Of course, the future development of Gorisean Electric Factory depends on his own operations. If he can find another way, he may be able to make more money. The other situation is naturally bankruptcy.

However, if he really plans to move the factory to Pointe Noire, then the East African government naturally does not need to consider the future fate of his business.

(End of this chapter)