The development process of "Zhonghua" pencil.

Author:Strongink Pen Kits, 2021-08-01


The wooden graphite pencil originated in England in the 16th century. In the 17th century, Germany built the world's first pencil manufacturing factory. In the 18th century, the French succeeded in researching and reforming the manufacturing process of lead cores, and made a major breakthrough in improving the use value of pencils, laying the foundation for the development of the modern pencil industry. In the 19th century, countries such as Russia, Japan, and the United States successively established pencil manufacturing plants. At the end of the 19th century, pencils from Germany, Japan, the United States and other countries were imported into China successively, occupying China's pencil market.

  The Chinese pencil manufacturing factory was born in the 1930s. In 1932, Hong Kong Kowloon was invested by the Chinese to convert a pencil factory run by a British businessman into a Dahua Pencil Factory, which was the first pencil factory in China. In 1933, Beijing China Pencil Company and Shanghai Huawen Pencil Factory appeared one after another. Neither of these two factories were all-round manufacturers. And because of the backward production technology, they have not been able to develop on a foothold.

  In 1933, Wu Gengmei returned to China from staying in Japan, full of the ideal of saving the country by industry, and initiated fund-raising to build a pencil factory. He screamed in the art scene: "Pencils occupies an important position in all kinds of stationery products, and they have a close relationship with primary school students. Check the customs trade report. Last year (1932) pencils were imported into my country. It was a giant of 1.5 million gold units. One thing, every year, the wealth of our people is as high as millions of dollars. This is what we are wary of, and it is also here that we feel the need to start this kind of industry as soon as possible." "Although the only Dahua Pencil Factory in my country has been established in Kowloon, but with this one factory, it will resist foreign goods and fail to catch it. It is really necessary to promote this kind of industry." Together with several like-minded people such as Zhang Weishi and Guo Zichun, Wu Gengmei struggled to raise 50,000 yuan in funds, and resolutely solved the problems of factory buildings, technical equipment, raw materials and so on. In 1935, it was established in Shanghai as the first company in China. An all-round pencil manufacturing factory capable of manufacturing lead cores, pencil boards, penholders and appearance processing.

  In old China, domestically-made pencils had to compete with foreign-made pencils. They squeezed into the market and faced many difficulties. Wu Gengmei did not flinch and was not discouraged. In response to the anti-Japanese patriotic sentiments of the Chinese people, the nationwide trend of advocating domestic products was widely set off and the factory was named "China". Standard National Products Pencil Factory Co., Ltd." (The company was reorganized and renamed as "China Standard Pencil Factory Co., Ltd." in 1942, referred to as "China Lead Company"). It claims that the factory’s products are manufactured by "Chinese technicians, Chinese raw materials, and Chinese capital." At the same time, the eight words "Chinese people use Chinese pencils" are printed on the pencils to stimulate the patriotic enthusiasm of the compatriots and encourage people to use domestic pencils. With the support of the patriotic enthusiasm of the Chinese people, the products of China Standard Domestic Pencil Factory gradually squeezed into the pencil market dominated by foreign pencils and gained a place. After many efforts, the pencils were placed in the stationery counters of the three famous department stores such as Yongan, Sincere, and Dah Sing on Nanjing Road, the busiest in Shanghai, which increased the value and popularity of the products, established the reputation of the products, and became more popular. Increase not only gains a firm foothold in the Shanghai market, but also gradually expands the sales area. As far as Yunnan, Shaanxi, Xinjiang and other remote areas, as well as Southeast Asia (Southeast Asia) and Thailand, there are also product footprints.

  In 1937, the domestic and international situation arose, the "July 7th" Incident, the Japanese imperialists launched a large-scale aggression against our country, the war quickly spread to Shanghai, and broke out the "August 13th" Songhu War of Resistance against Japanese aggression by Chinese soldiers and civilians. The pencil factory was located on the national border and was forced to suspend work under artillery fire. In order not to let the enterprises created by painstaking efforts fall into enemy hands, Wu Genmei, with the support of the employees, responded to the call of the Ministry of Economic Affairs of the National Government to relocate the factories and decided to demolish all the factories in the rear of the interior. Under the threat of enemy artillery fire, the factory workers went all out and moved to Wuhan for the first time. In 1938, he moved to Yichang. In 1939, it moved to Chongqing three times. The river was turbulent, and the civilian ship carrying the machine was in danger. Two-tenths of the equipment sank at the bottom of the river. After three migrations, hardships and dangers, the almost endangered pencil factory finally established its production in Chongqing and became the only pencil factory in the rear area. During his stay in Chongqing, the factory was bombed by Japanese planes twice, destroying workshops and warehouses, and suffered heavy losses. Under the enemy's lust, the entire factory's employees did not humble or crush, strenuously repairs, insisted on production, and assumed the responsibilities of the only pencil factory in the rear. During the eight years of the War of Resistance Against Japan, 51.414 million pencils were made entirely of domestic products and sold to various places in the rear area, alleviating the urgent need for cultural writing supplies in the rear area. At the same time, the affiliated China Standard Sawmill manufactured a large number of military wooden boxes urgently needed by the front line of the resistance against the enemy, and the affiliated Zhonghe Chemical Plant produced a large number of chemical products needed by the military industry, and did its best to directly support the cause of the war.

  After the victory of the Anti-Japanese War in 1945, Wu Gengmei returned to Shanghai to prepare for the resumption of the factory. It was completed and started production in the first half of 1946. It was one of the first enterprises to relocate the factory from Chongqing to Shanghai.

  In the early stage of the resumption of the factory, there was a serious threat of large-scale dumping of American pencils, and fierce competition from the Great Wall Pencil Factory in Shanghai and the Shanghai Pencil Factory, two powerful rivals, caused the factory's production and operation to fall into a very difficult situation. In 1948, the social turmoil, inflation, and prices soared infinitely. The factory sold finished products and couldn't make up for the raw materials in an instant. They had to drink pigeons to quench their thirst, borrow high profits, and maintain production. A vicious circle was formed. The debt became heavier and it was difficult to make ends meet. For the next. By 1949 the factory had been in a semi-stop state. The factory employees endured pain and suffering and fought stubbornly under the many sufferings, and finally preserved the factory intact, laying the foundation for the development of the pencil industry after the founding of the People’s Republic of China.

  The rooster sings the world. Soon after the liberation of Shanghai in May 1949, China Lead, under the leadership of the Communist Party of China and the People's Government, worked hard to develop the pencil industry in New China. In September 1949, in response to the call of the people's government, a set of pencil manufacturing equipment with a monthly production capacity of 20,000 rubles was used as an investment to establish a "public-private joint Harbin China Standard Pencil Company" as a joint venture with the Heilongjiang Province "Public-Private Joint Venture Harbin Enterprise Company". This was the first joint venture between a private company and a foreign public-private joint venture to build a factory in Shanghai. It caused a sensation in Shanghai at that time. The Shanghai Commercial Daily reported on this. Harbin China Standard Pencil Company is still one of the largest companies in the national pencil industry.

  In July 1950, China Lead was formally approved by the Financial and Economic Committee of the State Council for a public-private joint venture, becoming the first public-private joint venture in Shanghai's light industry system. Since then, the company has entered a brand-new period of development and started a new course.

  After the joint venture, the socialist awareness of the employees has been significantly improved. Seeing that the country has begun large-scale economic construction, the demand for drawing pencils for engineering design and drawing has greatly increased. However, China has never had domestic drawing pencils with complete specifications and excellent quality. Therefore, foreign products such as the expensive American "Venus" brand drawing pencils are used in large quantities. The employees are eager to change this situation and try to produce high-quality drawing pencils. After hundreds of trials-improvements-re-tests-re-improvements, in March 1954, a high-quality "China" brand 101 drawing pencil with complete specifications was finally manufactured. After its listing, it was welcomed by consumers, and the drawing pencils of the United States, Germany, Japan and other countries disappeared in the Chinese market. The "Zhonghua" brand 101 drawing pencil is the only product in China that can compete with foreign drawing pencils. Domestic products are unmatched. It has epoch-making significance in the history of China's pencil industry.

  In October 1954, the Shanghai Pencil Industry Co., Ltd. merged and the China Lead Company was renamed as "Public-Private China Pencil Company No. 1 Factory". In June 1955, it was renamed as "Public-Private Joint Chinese Pencil Factory No. 1" (referred to as China Lead No. 1 Factory). In January 1956, the state merged the "Public-Private Joint Chinese Pencil Factory No. 3" (the Great Wall Pencil Factory originally established in 1937) into the China Lead No. 1 Factory. Later, it was merged into "Wuhua Hardware Stationery Factory" and 8 small owners. Through the reorganization of the industry, the scale of the enterprise has been expanded and the production economy has achieved unprecedented development. The output value and output have increased exponentially. In 1957, the total industrial output value (calculated at constant prices in 1957) was 4.527 million yuan, which was an increase of 2.2 times in 1950; the output of pencils was 121,889,800, an increase of 2.18 times. The scale of the enterprise expanded exponentially. In 1957, fixed assets (original value) were 828,000 yuan, an increase of 3.55 times over 1950; the number of employees was 691, an increase of 306 over 1950. The enterprise suffered a loss before the joint venture. In March 1950, the total debt of the company was as high as RMB 4.5 billion, and the capital turnover was extremely difficult. After the joint venture, debts will be paid off gradually and losses will be turned into profits. In 1957, the total profit and tax amounted to 1.639 million yuan, with a profit of 1.407 million yuan.

  From 1958 to 1965, various political and mass movements were continuously carried out for years, which interfered and disrupted enterprise management and production order to a certain extent. Product quality is good and time lag, economic benefits are up and down, which affects the development momentum of the enterprise, but the overall production economy is still growing. The main economic indicators in 1965 compared with 1957: the total industrial output value (calculated at constant prices in 1957) was 13.162 million yuan, an increase of 1.9 times; the output of pencils was 322.7753 million, an increase of 1.64 times; the total profit and tax was 5.803 million yuan, an increase of 2.5 times; fixed Assets (original value) 1.957 million yuan, an increase of 1.36 times.

  During this period, two significant achievements were also made: First, the mass technological innovation and technological revolution movement continued from the mid-1950s, and the introduction of technological equipment from abroad, and the comprehensive reform and transformation of old equipment and old techniques. In 1956, it reformed and adopted the rotary drum core drying machine to replace the outdated manual core drying process; in the 1960s, hundreds of technological innovation projects such as the successful grinding head and the planer combined machine were put into production one after another. In addition, in 1956, the three-color printing machine was introduced from Japan to digest and reproduce the sample and reformed into a four-color printing machine; in 1958, the 200-ton hydraulic core machine and other advanced equipment were introduced from West Germany, which changed the original appearance of backward technology and equipment. Export "Great Wall" brand pencils and custom brand pencils. In 1959, it applied for the registration of the "Xiang" brand trademark exclusively for export products, and mass-produced and exported "Xiang" brand pencils, which expanded the export volume. By 1965, the delivery volume of export products reached 113 million, accounting for more than one-third of the total output of pencils, which played a pillar role in transforming my country from a pencil importing country into a large pencil exporting country.

  The "Cultural Revolution" from 1966 to 1976 brought disasters to China Lead No. 1 Factory, and the party organization was paralyzed. A series of so-called "fighting, criticizing, and reforming" actions not only caused many people to be treated unfairly. It has even messed up people's thinking and frustrated the enthusiasm of the majority of employees. The so-called "simplification of institutions" in 1968 abolished the original administrative institutions, completely disrupted the management system and work order, caused production chaos, and economic stagnation.

  In 1979, under the guidance of the line, principles and policies of the Third Plenary Session of the Eleventh Central Committee of the Party, the No. 1 China Lead Factory embarked on a historic reform step and moved forward firmly. After restorative and constructive rectification from 1981 to 1983, the trauma of corporate management caused by the "Cultural Revolution" was basically cured.

  In 1984, on the basis of consolidating the results of corporate reorganization, we strengthened the construction of spiritual and material civilization, cultivated and promoted the enterprise spirit of "humility, simplicity, enterprising, and progressive", strengthened the sense of responsibility of the employees, and improved the quality of the workforce. The cadres and groups of the whole plant worked together and worked hard to control the "dirty, messy and poor", the factory appearance and the appearance of the factory were completely new, at the same time the enterprise management level was improved, the product quality was promoted, and the economic benefits were both improved. "Civilized Unit" honorable title. The whole factory employees are full of steps, keep stepping, aiming at the "three new" goals (further equipment renewal, further product refurbishment, and benefits further refreshed), "three beauties" activities (beautiful living facilities, beautiful plant areas, and beautiful employees' souls), continue Climb up and achieve results. Since 1986, it has been awarded the honorary title of "Shanghai Civilized Unit" for consecutive years.

  After the implementation of the factory director responsibility system in August 1985, all employees of the factory resolutely implemented the spirit and requirements of "the enterprise must actively reform the internal mechanism" put forward by the Party Central Committee, promoted reforms, worked hard, and enabled the enterprise to enter a period of rapid development.

  First, establish a market information-oriented product development system. In accordance with the business philosophy of high-end, big market, and new technology, a product development center is established to give full play to the comprehensive advantages of technology, technical equipment and professionals, and invest a small amount of capital, in addition to the development of high-end, high-value-added thermal transfer pencils and lasers In addition to pencils, fluorescent pencils, etc., in 1986, the focus was on the development of "Alice" brand cosmetic pens, which filled the gaps in the country and met the needs of people's continuous improvement in material and cultural life. After just four short years, it became the company's second largest "fist product". Become the only domestic company that produces a series of pen cosmetics.

  Second, establish a marketing system that focuses on international market competition. Position the ultimate goal of competition in the international market, take measures to consolidate industry and trade relations, rely on main channels for export; explore agency systems and seek new export channels; set up factories in Zhuhai Special Economic Zone to develop multi-variety exports, and do everything possible to expand various medium and high-end products. Export products, expand the international market, and develop into more than 70 countries and regions in Europe, America, Middle East, Central and South America, Africa, Southeast Asia, Hong Kong, etc. The annual foreign exchange earnings can reach up to 6 million U.S. dollars, and it is in a leading position in the national pen industry.

  Third, in view of the weak production technology and equipment of old enterprises, we will step up technological transformation and technology introduction, and successively introduce more than 30 sets (sets) of technology and equipment from West Germany and other countries, so that every key process of pencil production is international in the early 1980s. The key professional equipment of advanced level, the degree of automation and production efficiency of the stand-alone machine have been greatly improved. While introducing and renovating production equipment, we also planned to carry out the transformation of production infrastructure and key expansion projects such as "Expansion of Fine Lead Core Workshop", "Pilot Workshop for Cosmetic Pens", and "Introduction of Resin Fine Core Process Equipment" and other key expansion projects. Improving existing production conditions, improving product quality, and expanding production capacity all have a positive impact.

  Fourth, based on the factory and consolidating the base, we have extensively carried out cross-regional, cross-industry, and horizontal economic alliances with different systems, and developed three different systems of joint operation forms such as national joint operation, national group joint operation, and Sino-foreign joint venture company. It has improved the ability of enterprises to adapt, develop and improve themselves, develop production, increase exports, and achieve good social and economic benefits.

  China Lead No. 1 Factory actively deepened reforms and changed its operating mechanism, which brought profound changes to the enterprise. It basically realized "the product structure has changed from a single wooden pencil to a variety of products", "the operating mechanism has changed from a production-oriented to a development-oriented operation", and "marketing". The concept shifts from production as the center to economic efficiency as the center" and "sales channel from single channel to multi-channel". Formed 14 specifications of wooden pencils, with an annual production capacity of 530 million pieces; 2 series of cosmetic pencils, 37 varieties, with an annual production capacity of 20 million pieces; 3 series of mechanical pencils, 10 varieties, with an annual production capacity of 5 million pieces; fine There are 2 series of lead cores, 20 varieties, and an annual production capacity of 10.

  In 1990, the whole factory covers an area of 15,194 square meters, with a construction area of 20,566 square meters. It has 562 sets (sets) of various equipments. Fixed assets (original value) 15.716 million yuan, net value 12.09 million yuan. At the end of the year, the number of employees was 988. The total industrial output value (calculated at constant prices in 1990) was 66.933 million yuan. The labor productivity of all employees is 70,158 yuan/person, the total annual profit and tax is 20 million yuan, the profit is 13.045 million yuan, and the per capita profit and tax exceeds 20,000 yuan. The main economic indicators have always been listed first in the country's pencil industry. It has become the largest enterprise with the largest scale, the highest output, the most variety, the best efficiency and the best reputation in the national pencil industry; it has also become a key backbone enterprise in the national light industry. In 1990, it was approved as the only national first-level enterprise in the pencil industry.

  Enterprises are not complacent because they are awarded the title of national first-class enterprise. With the in-depth development of economic system reform, they actively explore effective ways to deepen enterprise reform, accelerate enterprise development, and remain invincible in the fierce market competition. According to the actual situation of the enterprise, consider and compare, choose the best, and make a decision to convert a state-owned enterprise into a joint-stock management mechanism. After serious preparations and active work, in May 1992, the Shanghai Municipal People's Government approved the restructuring of China Pencil Factory No. 1 into the "China First Pencil Co., Ltd." with the integration of Chinese and foreign funds. The enterprise has entered a new era of striving to take off.

  For more than half a century, the first factory of China Lead has been full of hardships and disasters, hard work and struggle, setbacks and successes in the ups and downs. The founders of China Lead No. 1 Factory and the majority of employees have worked hard, worked hard, used wisdom and hard work to develop China's pencil industry, creating great achievements and building monuments. The glory of China Pencil Factory No. 1 will always shine in the history of China's pencil industry.

Author: Strongink Pen Kits