Chongqing - As most of the factories are resuming to work after the outbreak of COVID-19 in China, Qinyuan Bakery, Swire's Chongqing factory, runs 5 production lines that have recovered a production rate of 70%, and are operating up to 55% of capacity, since the city reported no new confirmed case in 9 days. On March 4, iChongqing visited the regional headquarters of Swire Foods, a Yorkshire originated food factory in Chongqing.
According to the Chongqing Economy and Informatization Commission, a total of 6,487 enterprises above designated size have resumed production (including enterprises in continuous operation) as of March 4, reaching an operating rate of 99.6%. At the same time, over 94% of the eight pillar industries in Chongqing are now in operation. Furthermore, the automotive and electronics sectors are in full-scale production.
Swire traces its origins back to Yorkshire in the 19th century, and first entered the Chinese market in 1866 under the name 'Taikoo.' As a result, Swire is among the earliest foreign brands to operate in China.
In recent years, Swire completed a 100% acquisition of the Chongqing bakery chain called 'Qinyuan.' Therefore, the facility in Baishiyi comprises the headquarters, a factory and distribution center for Qinyuan, and dormitory buildings for its employees.
As an essential food distributor in China, the bakery production lines continued to operate throughout the crisis. This is unlike many other industries that had to close temporarily in the early stages of COVID-19.
During our visit, financial director Francis Tin and company managers accompanied iChongqing on a factory tour. Once inside, we observed the level of production and asked Francis how the crisis affected their operations.
Qinyuan runs 5 production lines that have recovered a production rate of 70%, and are operating up to 55% of capacity.
Naturally, they have received government assistance, especially in terms of disease prevention. For example, they have liaised with the Commission for Economics and Information Technology, as well as the committees for management and commerce.
As for financial assistance, they hope to receive support loans for their network of outlets and franchise businesses. This is due to the fact many have seen interruption during the outbreak.
Qinyuan Corporation was founded in 1989, and now runs nearly 600 outlets of Qinyuan Bakery in southwestern China, including around 450 in Chongqing. Naturally, it's one of the most recognizable brands in the industry in the region.
The regional headquarters are in the Western International Agricultural Logistics Park, part of the Chongqing High Tech Zone. This is because the 30,000 square meter facility uses advanced technology in its equipment and management system.
There are nearly 3000 employees, including professionals in management, consultancy, and think tanks. Moreover, they enjoy a wide range of business contacts and technical exchange overseas. This allows them to remain at the forefront of industry developments.
On January 22nd, Qinyuan Bakery set up an emergency command center to liaise with government departments. For example, they cooperated with the Health Committee and Market Supervision Bureau. The aim was to ensure food safety whilst also protecting their staff and supply chains. In addition, they also made sure there were no price increases, despite the interruption in supply and market conditions.
The parent company of Qinyuan Bakery, Swire, has operated in China for over 150 years, so they have a deep commitment to the country and economy. Moreover, they expect a swift economic recovery from the outbreak, and also a continuing upward trend in the market.
Finally, Swire made a donation of 10 Million Yuan to the Red Cross Society to fight the outbreak. Qinyuan Bakery donated 300,000 Yuan worth of bread and cakes to 21 key institutions, such as hospitals, disease control centers, the police, townships, and neighborhood committees.
During the hour journey both to and from Baishiyi, we saw that traffic was noticeably heavier. This fact shows Chongqing has already recovered much of its dynamic atmosphere, and people's lives are returning to normal.
On the street leading up to the main entrance of Swire, we had to first stop at a health checkpoint. The reason was for staff in protective gear to check our temperatures, and also disinfect the vehicle.
As we prepared to return home later that same day, the management told us they will remove the checkpoint soon. This is because the level of risk has diminished over the past weeks.
Once at the main entrance, a security guard retook our temperature. We filled our details with pens kept on a disinfectant soaked cloth before staff handed us visitor cards for the day.
According to Francis Tin, they have established strict safety measures, including crisis teams for each department. They have been working on a 'closed system' in the factory. They monitor the health and movement of workers to avoid cross-infection.
For example, workers follow strict procedures in the canteen, and when they retire to the dormitory each day. Additionally, any workers returning after the New Year have to observe the 14 day quarantine period.
When we were toured to the staff canteen, we were much impressed. Like other companies, they follow a lunch schedule that avoids crowding, so they minimize the risk of cross-infection. When we were inside, workers sat with two empty seats between them either side. As a reminder for them to keep a distance, they had taped 'No sitting' notices directly on the seats they wanted to keep free.
Since the workers are still wary of outside visitors, we instead sampled a staff lunch in the meeting room. As we tucked into the very palatable set meal, and loaves of bread fresh out the oven, they explained another safety measure. While some other companies have workers bring their own utensils, Swire purchased an ample supply of disposable trays and cutlery. Therefore, there is even less opportunity for the virus to spread in this environment.
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