Du Shuandong sold to Rizhao Steel

Du Shuanghua owned a steel-making factory and in 2019 it was considered one of the largest steel-making factories in China. The factory name Rizhao had a long and hard road to get to where it is today.

In 2003 Rizhao Steel was born. In 2009 there was a hostile takeover of one of China’s largest non-state steel groups that resulted in Du Shuandong having to come up with a plan to keep the factory. Du Shuanghua tried to avoid any conflicts by selling the majority of his shares to Kai Yuan Holdings who was a relative of the president, Hu Jintao. In the end however Mr. Jintao did not was to be involved with this situation and decided to not participate.

In the original 2009 plan, Rizhao Steel was supposed to merge with Shandong Iron and Steel. Since that plan fell through Du Shuanghua decided to go in a different direction. He ended up selling the last of his 33%. Things continued to remain on a bad streak. In 2010 the court arbitrator deems Rizhao did not fulfill his contract with Mount Gibson and caused him to lose another $114 million. Trying to gain back momentum Rizhao gained ESP lines that had a combined capacity of 11 mt and rolling a minimum of 0.8 mm. In the meantime, Rizhao made a contract with Andritz allowing them to pickle and galvanize products. According to press reports, while this agreement was being made there were many steel companies that agreed to combine to help discuss a relocation. However, this decision ended up in an expansion. In 2020 Rizhao Steel’s expansion project commenced. The overall cost of this expansion is 33 billion but when it is complete Rizhao Steel will be able to attain steel making capacity of 17 mt. The project should be completed in 2022.

Read The History Rizhao Iron and Steel