Chapter 320: Double Standard
Hexingen Bank serves as the core component of the Hexingen Consortium, the backbone from which many large enterprises and branches extend. These branches are connected to numerous partners, raw material suppliers, sales outlets, small companies, and enterprises invested in by Hechingen Bank. The bank's headquarters is the central hub that directs the entire operation of the consortium.
While relocating the entire consortium to East Africa is not currently feasible due to East Africa's limited capacity to support such a global conglomerate, relocating the bank's headquarters to East Africa allows it to continue managing the consortium's operations effectively.
Ernst moved on to the next topic and asked Clayson, in charge of the textile industry, to provide an update on its status.
Clayson reported, "Your Highness, the textile industry has been performing exceptionally well, especially during the previous year when the war broke out. We saw a surge in production capacity and received numerous orders from Germany and the Austro-Hungarian Empire. Our advantage lies in abundant, low-cost labor in the Far East and the efficiency of our new factories. We were able to free up machines and workers for military orders, ensuring a continuous, sufficient, and stable supply of uniforms and related products."
He explained that the army had been a significant customer, especially with the expansion of the North German Federation's army by one million troops during the previous year. This expansion led to a high demand for military uniforms and related items.
Ernst acknowledged the profitability of the textile industry, stating, "The textile industry is indeed a lucrative sector. Currently, our textile industry is divided into two categories: wholly-owned enterprises and factories, and investments in textile enterprises in the United States and Europe through loans. I would like to focus on the first category, our own enterprises."
Ernst expressed his intent to separate the textile industry from the Heixingen Commodity Company and establish a new textile industry group directly under Hechingen Bank. This change aimed to streamline management and enhance efficiency.
The idea received unanimous support from the attendees, as it had long been apparent that the textile industry should operate independently from the Heixingen daily necessities company.
With the construction of the Far East Textile Factory and the ongoing project in Nairobi, Hechingen Consortium's textile industry had achieved a first-class level. It ranked fifth in the world, trailing behind only the textile industries of the United Kingdom, the United States, France, and the Far East countries.
Ernst explained that the textile industry in the consortium was heavily focused on military uniforms and related products, given the demand generated by military expansions and conflicts.
He noted that the world's textile industry landscape was diverse, with countries like the United States, the United Kingdom, France, Belgium, and Japan among the top players. However, the consortium had managed to secure a significant market share.
Ernst concluded the discussion on the textile industry by emphasizing the need to establish a new textile industry group under Hechingen Bank. The textile industry had proven its profitability and efficiency, and it was essential to adapt to the evolving market and enhance the consortium's capabilities.
As the meeting continued, Ernst remained focused on addressing various aspects of the consortium's operations and ensuring its continued growth and success.
The chapter ends with a reflection on the global state of affairs in 1871, highlighting the world's prosperity, even in regions that had previously experienced turmoil and destruction.