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Dongfeng Tire Company declares policy bankruptcy, and Double Star intends to reform the technology of Double Star Dongfeng Tire Company
(Reporter Cao Yu correspondent Fu Zhengqian) The reporter learned yesterday from the Provincial State-owned Assets Supervision and Administration Commission that Dongfeng Tire Group Co., Ltd. and its affiliated companies Dongfeng (Shiyan) Tire Co., Ltd., Dongfeng Tire Group Import & Export Co., Ltd., Dongfeng Tire Factory Industrial Development Co., Ltd. Recently declared a policy bankruptcy. Immediately after the announcement, the Double Star Group immediately issued a voice and plans to invest RMB 700 million in double star Dongfeng Tire Co., Ltd. for technological transformation in the next three years. The company will provide more than 2,000 jobs and enter the forefront of China's tire industry.
Dongfeng Tire Group Co., Ltd. was formerly known as Dongfeng Tyre Factory. It was a supporting cooperative enterprise for the construction of China National Automobile Co., Ltd. in 1969. It was once hailed as one of the "four kings" of China's tire industry. It was directly invested by the then Ministry of Chemical Industry to build and manage. Later transferred to the management of Hubei Province, is now under the management of Shiyan City. At the end of 1993, Dongfeng Tire Group Co., Ltd. and Malaysian Lion Group jointly invested in the formation of Dongfeng Golden Lion Co., Ltd. Due to the company's inexperienced market and insufficient investment, the company had a ten-year joint venture with a loss of ten years and debt of more than 1.1 billion yuan. By May 2004, the company stopped production and more than 4,000 workers faced unemployment and their lives were in trouble.
In the face of this dilemma, the local government has tried every possible means to seek cooperation. On January 25 last year, it led to the formal signing and reorganization of Double Star Group and Dongfeng Tire. At the same time, in order to protect the legitimate rights and interests of employees, the municipal party committee and the municipal government actively sought policy bankruptcy for the country and properly settled retired employees. It is understood that the standard for resettlement fees is the highest among industrial enterprises in the province, and the expenses are paid by the government first.
Qingdao Double Star Group is currently the leading shoe-making enterprise group in China. The company was listed in 1996. Around 2001, this shoe-making company intervened in the tire industry through the stock market. In 2003, the company stated that Qingdao Doublestar will no longer invest a penny in the footwear industry in 2003, but will invest additional capital in the tire industry. Double Star believes that the marriage with Dongfeng Tire will significantly increase the company's production scale and production capacity.
Glossary
The so-called bankruptcy, in the legal sense, refers to the compulsory liquidation of all its assets under the supervision of the court when the debtor loses its ability to pay off debts, and to fairly repay the legal system of all creditors.
The so-called policy bankruptcy means that the state cancels all previous bank loans of the enterprise and mortgages the assets of the bank to cancel the mortgage, which is used for the resettlement of employees, and the lack of financial subsidies.