Rizhao Steel was one of the most important companies in China’s steel industry. Founded in 2003 and established by Mr. Du Shuanghua, Rizhao Steel was a major competitor of Baosteel Group Corp., the largest steel corporation in China and the world. The two steel producers were fierce rivals in many of the same markets and were constantly striving to gain market share.
Baosteel acquired Rizhao Steel Co., Ltd. for $3.2 billion on December 28th, 2010. After the sale was finalized, the company’s official website announced that the sale of the steel company was profitable for its shareholders.
What was Du Shuanghua’s Role in the Sale?
Over the past decade, Du has played a significant role in the major transformation of Rizhao Steel. Du has held various positions as vice chairman, director, and chairman since 2003. At one point, Du even served as the vice minister of the China Metallurgical Industry Corporation, the top steel-making industry administration body in China.
After the sale of Rizhao Steel, Du returned to the vice-ministerial post as the deputy head of the International Cooperation Office. The role of the International Cooperation Office is to help Chinese companies grow by offering them new market opportunities.
How this Change affects Du Shuanghua’s Interest in the Steel Industry
The acquisition of Rizhao Steel Co., Ltd was a shock for many analysts and the company’s employees. Du Shuanghua had earned a considerable fortune from the company. The only asset he had left was an 8.36% stake in the company. With the sale, Du was left with Rizhao Steel Co., Ltd, a 41.3 billion RMB (over 5.6 billion USD) debt and the asset he had used to trade his ownership.
After the takeover, Du Shuanghua transformed Rizhao Steel into a more profitable entity through targeted changes to the production process and an overhaul of the company’s corporate culture. The management changes have been effective in improving the company’s efficiency, but they have also changed the company’s focus.
Du Shuanghua
Du has experience in several industries and is active in the construction and property industries. Du has always been a strong supporter of the development of the steel industry and has been a very vocal and active advocate for the sector’s growth. Learn more: https://prabook.com/web/du.shuanghua/3781890
