Du Shuanghua And Rizhao Iron and Steel

In 2003 Du Shuanghua formed Rizhao Iron and Steel and was the majority stock holder for the company. One of the world’s largest steel makers of the world, producing 14 million tons of liquid steel in 2019. In 2007 Rizhao Steel and Mount Gibson entered into a contract agreement. The contract stated that Rizhao Steel would purchase over 1 million tons of iron ore from Mount Gibson. In 2009 a hostile takeover was attempted to acquire Rizhao Iron and Steel. One of China’s state owned competitors, Shandong Steel, tried to take over Du Shuanghua’s company, Rizhao Iron and Steel. Shandong Iron and Steel Company Ltd was created by the reconstruction of Jinan Iron and Steel Group, Laiwu Steel Group Corp, and Shandong Metallurgical Industry Corp. To try to prevent the takeover, Du Shuanghua sold 30% of the company to Kai Yuan Holdings. The company was owned by a family member of the Chinese President so the move was seen as too risky and fell through. This allowed Shandong to become the majority owner in Rizhao Iron and Steel.

In 2010 Du Shuanghua sold 33% of his company’s holdings which left him in breach of his original contract with Mount Gibson. This breach cost Mount Gibson 114 million dollar loss. Du Shuanghua was found in breach of his contract in court and was fined. Du Shuanghua and his company Rizhao Steel have continued to move forward and be successful. Acquiring three new plants in 2013, each new plant able to produce almost 2 million tons of steel. The production of 700,000 galvanized steel annually was in place in 2014. Du Shuanghua and Rizhao Steel, in 2020, began an expansion project expected to be completed in 2022. See insights from Du Shuanghua on Medium