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bloodlandsbook > Rebirth of Steel Tycoon > Chapter 140: Construction of the Jiang River Bridge

Chapter 140: Construction of the Jiang River Bridge

  In the afternoon, Shen Huai went to the weaving and dyeing factory with He Qing She, Li Feng, Huang Xinliang and others to see the progress of the renovation of the transitional house.

  There are still about 30 households of affected people temporarily settled in the town, and in order not to affect the students' opening of school, the transitional houses need to be renovated before the 15th day of the first month. The town requires the contractor to start work on the fifth day of the new year.

  As they entered the weaving and dyeing factory, the work situation was much earlier than Shen Hua had imagined.

  Under the coordination of Li Feng and Chu Yiliang, Zhu Li has been gathering people since the second day of the new year to dismantle the old equipment in the workshop. The workshop near the factory gate has started to lay a new floor and install a dragon bone frame.

  Chu Yiliang had considered expanding the blanket factory years ago and had prepared a batch of building materials, planning to start work after the new year. This time, the town government coordinated and Chu Yiliang temporarily lent out this batch of building materials to meet the needs of building temporary houses on this side, so they were able to start work on the second day of the new year.

  Looking at the construction workers dismantling equipment, laying flooring and installing dragon bones in the dyeing factory, there were nearly a hundred people. Shen Huai also secretly felt that Zhu Li was indeed a number one figure in Meixi Town. If it were someone else, even with the support of the municipal party secretary, how many people could pull out a construction team of nearly a hundred people on the second day of the year?

  Construction has just started and nothing can be seen yet. Shen Hua went to the office of the weaving and dyeing factory to inquire about the follow-up work arrangement for the renovation project.

  Shen Huai asked very detailed questions, and Zhu Li's answers were also very comprehensive and professional.

  Zhu Li had previously worked as a manager at the Municipal Construction Company and was extremely familiar with construction and installation. He also had several engineers who followed him from the Municipal Construction Company, making his team far more capable than an average roadside construction crew.

  If it weren't for being troubled by debt these years, Shen Huai thought: Zhu Li's achievements wouldn't be inferior to Chu Yiliang's.

  Shen Huai pulled He Qing She and Li Feng, who were discussing the renovation of the transitional house with Zhu Li and several engineers under his command. Chu Yi Liang and Yang Hai Peng poked their heads in.

  "How did you two end up together?" Shen Huai found it strange that Yang Haipeng and Chu Yiliang were walking together.

  "Lao Chu asked me to come over and play cards," said Yang Haipeng, "Lao Chu heard that you were here inspecting work, so he threw down his cards and rushed over to report on the work..."

  "Where are you guys gambling? I'll report to the police station to catch a gambler, and it's just in time for the town's oil and water to be scarce. It's perfect to catch your little gamble." Shen Hua joked, inviting Chu Yiliang and Yang Haipeng to come over and chat, offering them cigarettes, saying "I was just looking for you guys to discuss Manager Zhu's matter..."

  "What's wrong with Zhu Pangzi? Didn't he put his heart into this renovation project?" Chu Yiliang asked strangely, and then said to Zhu Li, "Zhu Pangzi, I and Secretary Li have boasted about you in front of Secretary Shen. This transitional house is for resettling the affected masses, if you mess it up, no one will care about Mei Creek Town in the future..."

  "I am very satisfied with the current engineering situation,"

  Shen Huai smiled and said, "Let's get straight to the point."

  "We were the first province to implement the pilot program of dividing taxes, and the new industrial value-added tax can only be shared by local governments at a ratio of 1:4. So in the past two years, the enthusiasm for enterprises to develop has been greatly reduced. However, the construction industry is an exception. The construction industry does not pay value-added tax, but only pays business tax, which is all attributed to local taxes. Vigorously developing the construction industry can maximize the increase in local fiscal revenue, and this will also be a key development object for local governments in the future - I represent the town, deciding to support Manager Zhu, apart from the fact that the town indeed owed Manager Zhu previously, this is also a major reason..."

  Currently, Donghua City levies taxes on construction enterprises, and the business tax plus urban construction, education and other fees are all incorporated into local financial income. According to the current reduction and exemption as well as the fiscal package signed between Meixi Town and the county, for every 1 million yuan of engineering contract value, the finance of Meixi Town can increase its tax revenue by 30,000 to 40,000 yuan.

  If Meixi Town had a construction company that could undertake one or two projects of the scale of Tianheng Building every year, the town's financial revenue would immediately double.

  "Is that so? I used to think that construction companies were like factories and had to pay value-added tax. Now that you mention it, it makes sense - what kind of value-added tax would a construction company pay? We really don't think things through as thoroughly as Secretary Shen." said Chu Yiliang.

  "Each profession has its own expertise, and you don't have to consider the financial income of the town, I'm not that close with Town Head He and Secretary Li." Shen Huai said with a smile.

  "Secretary Shen is really very professional, I thought I still had some understanding of the construction industry, and Secretary Shen asked so many details that my back was almost sweating." Zhu Li said with a flattering tone, without mentioning other emotions, the extensive knowledge shown by Shen Hua was something he couldn't deny.

  "There are some things I need to declare here first," Shen Hua said seriously to Zhu Li, "I support you, Manager Zhu, as a regular construction company that can increase local fiscal revenue and provide more job opportunities for the locals, not as a private contractor who evades taxes..."

  Shen Huai also knew that the more formal he was with Zhu Li, the less burdened he would feel emotionally.

  Zhu Li nodded and replied: "Secretary Shen's instructions, I will definitely work hard to do it, and I will also make contributions to the development of Meixi Town..."

  Putting aside personal feelings, Zhu Li also knew that doing private contracting, while appearing to be able to evade some taxes, actually had high transaction costs in private and restricted his own development. On the other hand, Shen Hua's insistence on him becoming a regular construction company also suggested that Shen Hua had fewer ulterior motives.

  Shen Huai said to Chu Yiliang, "You're also aware of Manager Zhu's situation. Even if the town returns all the owed engineering fees to him, he'll probably just barely be able to pay off his old debts, but there won't be much funding to help him further develop. I have a suggestion, what do you think?"

  "Secretary Shen, whatever you say goes." said Chu Yiliang.

  "Old Zhu owes you 500,000 yuan. You take out this 500,000 yuan and Old Yang also takes out 500,000 yuan to jointly establish a construction company with Old Zhu. In this way, after Old Zhu clears up other old debts, the construction company can still have 1-2 million yuan in funds for business development. As for how to arrange the equity of the construction company, you discuss it among yourselves..." Shen Huai said.

  "Go ahead, I have no objection!" Yang Haipeng made a decisive statement, only an idiot would refuse.

  He had just received a dividend of 500,000 yuan from Penghai Trading last year, and continuing to invest in Penghai Trading could not immediately increase the trading volume.

  Shen Huai is going to carry out large-scale fundraising for house and road bridge construction in Mei Creek Town, as well as large-scale factory expansions for the steel plant and Zilu Home Textiles. Shen Huai has helped him open this door of wealth, how can he refuse to walk through it?

  "I'm more than happy, what about you, Old Zhu?" Chu Yiliang asked with a smile.

  "Lao Zhu, you've helped me a great deal; and Secretary Shen's arrangement is also to help me get rid of the worries about debt, so that I can focus on doing engineering and developing the company. How could I not understand?" said Zhu Li.

  "After borrowing the money, you clear up other debts first. Then, with my 500,000 yuan and Yang's 500,000 yuan investment, we set up a construction installation company. You contribute your technology and team as shares. As for the shares, Yang and I will take 60% together, and you'll take 40%. The company will still be operated by you, so you won't think that Yang and I are taking advantage of you, right?" Chu Yiliang asked.

  "Lao Zhu, what are you talking about?" Zhu Li also readily agreed without any hesitation.

  Shen Huai was also worried that Zhu Li would turn against him after knowing about his past with Zhu Yi, so he made such arrangements to restrict Zhu Li's control over the newly established construction company, but not to harm Zhu Li's interests.

  Of course, Zhu Li did not have any bad ideas because he knew the principle of not eating alone and united with Chu Yiliang and Yang Haipeng, the benefits were very obvious.

  Firstly, after clearing his debts, he would have $1 million in funds for the new company to assemble a team and develop its business.

  The company has Chu Yiliang and Yang Haipeng as major shareholders, so it can quickly recover its credit. Otherwise, Zhu Li, who is entangled in debt, would not even have the qualifications to connect with large projects.

  At the same time, it can also borrow from Chu Yiliang and Yang Haipeng's personal relationships to take on more projects.

  And even if the company has any business risks in the future, it's much better for Lao Zuo and Yang Haipeng to take on together than before when he dragged his whole family into it.

  Even if Zhu Li emotionally wanted to refuse Shen Hua's help, when things really fell in front of him, he found that it was something he couldn't refuse.

  The construction team pulled out by Zhu Li before was called Zhū Jiāng Construction and Installation Team. He Qing She, Li Feng, Chǔ Yí Liáng, Yang Hai Peng sat together with Zhu Li to discuss, and the new company was named Zhū Jiāng Construction and Installation Company.

  "Not big enough," Shen Hua sat beside them, directly negating their proposal. "Your vision should be broader and your ambition greater. I think we'll call it Zhejiang Construction. For now, it's Zhejiang Construction Co., Ltd., but when the scale expands, it will become Zhejiang Construction Group Co., Ltd. After the transitional housing renovation is complete, the collective fund housing project will be launched, and the construction company should quickly assemble its team..."

  "So soon?" Chu Yiliang had only heard that the town was going to raise funds to build houses a year ago, and he didn't expect Shen Hua to start the fund-raising housing project just a year later. He felt that things were moving too fast.

  "Is it quick?" Shen Huan asked back, "We've been sitting here for half a day, let's go out and take a walk. Building Meixi Town is not just the responsibility of our party members and cadres, you are entrepreneurs in Meixi Town, and naturally you also need to take on this responsibility..."

  Shen Huai got up and asked He Qing and others to follow him out for a walk. They took two cars, left the dyeing factory, turned from Xuetang Street to Gangchang Road, and stopped near Meixi River.

  On the south side of Gangchang Road, there is a piece of land that has been abandoned. To the west, across Meixi River, you can see the urban area on the other side. On the east side, there are blast furnaces for iron production in the steel plant.

  This land was originally reserved for the construction of a steel factory worker residential area during the expansion of the steel plant in the early years. However, the steel plant has been losing money year after year, and the workers' income is very low, so they can't afford to participate in the collective fund to build houses. The whole piece of land was left abandoned, overgrown with withered wormwood that had survived the winter...

  "Mei Creek's development has been slow, and it can't be delayed any longer," Shen Huai said as he walked north along the sandy path beside Mei Creek River with He Qing She and Chu Yi Liang. "Every time I drive past Mei Creek Bridge, looking at the contrast between urban and rural areas on both sides of the bridge, a voice in my heart urges me to move faster. Without mentioning other things, just talking about this snow disaster, if Mei Creek and He Tang towns had completed the renovation of dilapidated houses before this, the damage caused by the snow disaster would not have been so great..."