May 10, Wuhan, China News Service — At a recent policy bankruptcy meeting for state-owned enterprises in Hubei Province, it was announced that by the end of 2008, 30 state-owned enterprises, including Dongfeng Tire Group and Jingyi Chemicals, will proceed with policy-driven closure and bankruptcy. This marks a significant step in the province's ongoing efforts to restructure its state-owned enterprises and improve economic efficiency.
The 31 companies involved are spread across seven cities: Wuhan, Huangshi, Shiyan, Yichang, Jingmen, Xianning, and Ezhou. These firms operate in key sectors such as textiles, chemicals, and metallurgy, and collectively employ over 80,000 workers. The restructuring is expected to bring about major changes in the local industrial landscape.
According to a report in the Hubei Daily, the primary focus of the bankruptcy process will be on employee resettlement. The government will cover any financial shortfalls, ensuring that employees receive proper support. Additionally, some workers may be eligible for early retirement benefits, with up to five years of preferential treatment. For laid-off workers, especially those from single-income households or with special circumstances, tailored policies will be introduced to assist them in finding new employment opportunities.
Ren Shimao, deputy governor of Hubei Province, emphasized that the government bears the main responsibility for managing the post-bankruptcy transition. This includes handling staff resettlement, transferring the company’s social functions, managing employee insurance, and resolving outstanding debts. He described the process as “closing the door and paying off debts,†highlighting the importance of a smooth and fair transition.
Notably, this initiative comes at a crucial time, as it is reported that after 2008, China will no longer accept applications for policy-driven bankruptcy of state-owned enterprises. This signals a shift in national policy, moving away from large-scale closures and focusing more on sustainable development and market-oriented reforms.
The move reflects broader economic adjustments in Hubei, aiming to reduce the burden of unprofitable state-owned enterprises and create a more competitive business environment. It also underscores the government's commitment to protecting workers' rights during this challenging period.
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