LYC-Acquisitions Right and Wrong
Resource from: cbcc-yinx Likes:2938
Mar 12,2007
LYC-Acquisition's Right and Wrong
“Enterprises in Luoyang are like spoiled children of the local government rather than a participants in the market.” said an investor in Luoyang.
On a report on LYC’s restructuring, approved by Xu guangchun, Secretary of CPC Committee of Henan province, we see the following words:
“Since middle 1990s, management of LYC remain backward in mind, being not awared of the importance of reform. Due to the fear of difficulties that might accompany the reform, they gave up several unprecedented opportunities````also the leaders were careless in management, short of supervision over the production and operation etc. As a result, illegal activities became rampant, causing serious problems in terms of false account, outflow of state assets and substantial loss in consecutive years.” This report was released on March 2006.
At present, LYC Bearing remain the well known bearing base in China, leading the way in bearing types and application. However, they have to face the fact that their assets are not enough to repay debts. It’s the backward system of the traditional state-owned enterprise that lead to this.
Now, many local SOEs tend to achieve their reform by establishing partership with centrol government controlled enterprises, who can provide abundant capital and accesses to more market share, technologies and advantages based on scale economy.
While, it’s not the end of SOEs’ road to reform. As was said by offcial from Yongcheng Coal & Electricity Group (YCEG) “We’ll not rule out the possibility to cooperate with some strategic partners after the LYC acquisition.”
From the LYC-Acquisition, the private enterprises who interested in acquisition might find some useful tips. After the first LYC-Acquisition, YCEG attached great importance to guarantee the interest of employers, raising salary from 400 to 1,400 yuan and seldom employing any redundancy in two years.
Official from YCEG said: “This may be the reason why we can win the second LYC-acquisition. Absolutely, the government like the policy we adopted in dealing with worker issues.”
Afterall, real purpose of SOE reform is to sharpen competitive edge and to establish modern corporation system, on which enterprise restructuring, no matter by what means, should based. Thus, more similar “LYC-Acquisition” may come out in Luoyang or other parts of China.
(cbcc-yinx)
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1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
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