Chapter 34

On May 25, 1952, the Metallurgy Department approved Lou's Steel Rolling Mill's application for a public-private joint venture plan. When submitting the plan, Minister Liang requested adding a clause: if the application is approved, the steel rolling mill will undergo expansion to meet subsequent self-owned orders and talent training delivery. The written report was submitted to the State Council for review the next day.

After receiving the report, the State Council held a meeting that afternoon to study and discuss it, then decided to pilot-run the plan submitted by the Metallurgy Department, allocate funds for share acquisition, agree to the expansion of the steel rolling mill, and require the Metallurgy Department to produce a joint venture plan within three days.

On the 27th, after receiving the receipt, the Metallurgy Department quickly formed a preparatory group for the public-private joint venture of Lou's Steel Rolling Mill, with Minister Liang as group leader, Minister Sun as deputy leader, Director Li, and Ren as head of the task force office.

That afternoon, Director Li led a team to the steel rolling mill first to research and discuss the public-private joint venture matters.

In the evening at the Lou residence, Lou Dong's younger brother Lou Guojin and sister Lou Guoping sat in the living room waiting for Lou Dong to return, and Lou Guoping said, 'Sister-in-law, why hasn't my brother come back yet?'

'Guoping, don't worry, he should be back soon, after all this is such a big matter, your brother—' Tan Yajing hadn't finished speaking when they heard the sound of a car.

'Your brother is back,' Tan Yajing said, and the three of them walked toward the door.

'Brother, you've finally come back—can our factory really not be saved?' Lou Dong had just gotten out of the car when Lou Guoping ran up and said.

'Guoping, let the elder brother go inside first,' Lou Guojin scolded.

'All right, Guojin, don't speak to the little sister—you know her temper—go inside first,' Lou Dong said, then walked into the house.

In the Lou family living room, Lou Guoping asked, 'Brother, is our factory really gone?' The three people in the living room stared at Lou Dong, waiting for his reply.

'What do you mean gone? Our family's shares are still there,' Lou Dong said.

'Brother, logically speaking, whether before or after liberation, our family has always been providing support—was this matter handled too'

'All right, Guojin,' Lou Dong interrupted Lou Guojin's words, 'This time the Metallurgy Department came to talk to me; I've thought about it for a long time. Now the country is in a difficult period, and the role of the steel rolling mill in our hands is far less than its role in the state's hands.' After saying that, Lou Dong took a sip of water and continued.

Moreover, at that time the Metallurgy Department wanted to give our family 20% non-working shares, but I disagreed; I wanted no shares at all, yet Director Li disagreed, so in the end I retained only ten percent non-working shares.

'Brother~' Lou Guoping was about to speak when Lou Dong interrupted, 'Guoping, I know what you're thinking. After the public-private joint venture, our factory will expand at least double. Do you want to take advantage of the state? Moreover, this time the state is purchasing our shares at market price, so we are not losing out at all.'

'Guoping, you should know that our identity is fundamentally different from the state's ideology. Have you forgotten the Liu family just after liberation? Don't make things harder for the elder brother; I don't want any shares of the steel rolling mill—give them all to you,' Lou Guojin said.

'Oh, little brother, I didn't mean that,' Lou Guoping hurriedly said.

'All right, Guojin, Guoping, take the money the state pays for our shares this time and split it between you two; I don't want any. As for the shares, each of you gets 2.5%. Guojin, go to Hong Kong for a while, and this time bring Xiao Guang back.'

'Okay, big brother, I'll make arrangements and go,' Lou Guojin said.

'All right, don't just sit there—let's go eat,' Lou Dong said, got up, and walked toward the restaurant.

The next day, at Lou's Steel Rolling Mill, forge worker Liu Hongbing of the third workshop said to everyone, 'Hey, have you heard? Our factory is going to undergo a public-private joint venture.'

'What is a company joint venture? What does it have to do with us?' someone asked.

'Hehe, is this a company joint venture?' Liu Hongbing said, drawing out his tone.

'All right, Little Liu, stop beating around the bush and spit it out,' someone interrupted Little Liu.

'I also heard that this public-private joint venture means the state will later send people to take over the factory; after that, Lou Dong will no longer manage it, only holding shares in the factory,' Little Liu said.

'What does that have to do with us? It's just a change of leadership,' Old Li of the third workshop said.

'Uncle Li, you're wrong about that. After the company joint venture, although we remain workers, do you know the No. 1 Steel Rolling Mill? That's a state-owned enterprise, and from now on we'll be just like it,' Little Liu said.

Old Li looked at Little Liu in surprise and said, 'So you mean we'll start eating state meals from now on? We'll have an iron rice bowl?'

'That's right, Uncle Li. From now on our unit will also be a public institution,' Little Li said.

'That's really great—from now on we'll also have an iron rice bowl,' the crowd exclaimed excitedly.

Discussions about the public-private joint venture sprang up in almost every workshop and office of the steel rolling mill.

On May 31, Lou Dong met with Metallurgy Department Minister Liang Zhaoxin for the handover. After the handover ceremony concluded, Lou's Steel Rolling Mill was officially renamed Red Star Steel Rolling Mill.

Lou Dong walked out of the office building amid the crowd's escort, bade farewell one by one to Minister Liang and the others, then got into a car and left the steel rolling mill. As the car drove out of the mill, Lou Dong kept gazing at the mill's gate through the rear window until the vehicle went far enough that the mill disappeared from sight, whereupon he turned around.

'Secretary Liu, Factory Manager Yang, from now on the steel rolling mill relies on you two—you bear a heavy responsibility,' Minister Liang said, looking toward the Red Star Steel Rolling Mill's deputy secretary Liu Jiujiang and factory manager Yang Weimin.

Secretary Liu said, 'Minister Liang, rest assured, I and Old Yang are old partners; I guarantee to complete the task assigned by the organization.'

'Secretary Liu, you must quickly form a leadership team to coordinate and manage the handover affairs of the steel rolling mill, and moreover I think the steel rolling mill needs a comprehensive political review of all personnel; some unqualified staff should be reasonably arranged, but you must pay attention to the manner of work so that nothing detrimental to the steel rolling mill occurs.'

'Understood, Minister Liang. The steel rolling mill will swiftly establish a leadership team and announce this at a factory-wide meeting, guaranteeing to complete personnel adjustments within one week,' Secretary Liu said.

'One week is too long, Secretary Liu. You and Factory Manager Yang only have five days; after five days the steel rolling mill must resume normal production, and you must also promptly submit the mill's expansion plan to the department,' Minister Liang said.

'I guarantee to complete the task, Minister Liang,' Secretary Liu said, then gave Minister Liang a military salute.

After the steel rolling mill's public-private joint venture, the first department established was the publicity department, and a broadcast room was set up. When the steel rolling mill's workers saw the large loudspeakers installed at their workshop entrances, they all curiously watched the installation workers. Once all the loudspeakers at the steel rolling mill were installed, a voice came from the loudspeakers: 'Comrades workers of the steel rolling mill, hello, I am the newly appointed party secretary of the steel rolling mill, Liu Jiujiang. Our Lou's Steel Rolling Mill is officially renamed Red Star Steel Rolling Mill effective today. Please all workers of the mill gather at the factory office building in one hour for the first workers' meeting of Red Star Steel Rolling Mill.'

The first department established after Yagangchang became a public-private joint venture was the Propaganda Department, and a broadcast room was set up. When the workers of Yagangchang saw the loudspeakers installed at the entrances of their workshops, they curiously watched the installation workers. After all the loudspeakers at Yagangchang were installed, a voice came from the loudspeakers: "Yagangchang workers, comrades, hello everyone. I am the newly appointed Party Secretary of Yagangchang, Liu Jiujiang. Starting today, our Lou's Steel Rolling Mill is officially renamed Red Star Yagangchang. Please all comrades of the factory gather at the factory office building in one hour to hold the first staff meeting of Red Star Yagangchang."