The Sale of Rizhao Steel in 2010 and Du Shuanghua
Once one of the most successful steel companies in China, Rizhao Steel was acquired by Shuanghua Group in 2010. After being purchased by Du Shuanghua, Rizhao Steel underwent many changes, including shifting its strategy and marketing campaigns to align with its goals more closely.
After the acquisition, how did the company change?
In a short time frame, the company saw a remarkable change in performance. The original average annual profit of 4 million RMB was increased by 131 times to 1.4 billion RMB in 2010. Additionally, the company’s sales doubled from 2000 to 10,000 tons per day.
Its success is attributed mainly to its new leader and his team. Under Shuanghua Group’s leadership, the steel industry has been revived by innovation in both technology and products. For example, rebar production has been optimized thanks to the introduction of new technology that can produce 1 ton in an hour with a yield rate of 98%. This is more efficient than any other company in China and helps make Rizhao Steel one of China’s most productive steel plants.
Furthermore, under Shuanghua Group’s leadership, Rizhao Steel also began producing environmentally friendly steel products like low-carbon steel wire rods that reduce CO2 emissions by 20% compared to traditional manufacturing methods.
Du Shuanghua and Rizhao Steel now
By the late 1990s, Rizhao Steel was one of China’s most successful steel companies. However, by 2010, the company’s financial performance had been declining for over a decade.
At first, Du Shuanghua wanted to keep management unchanged at Rizhao Steel because he thought they were capable. However, after several months of being in charge, Du realized that the strategy and marketing campaigns created by the management team were not successful. Due to this realization and to better align with his group’s goals, Du Shuanghua led a restructuring effort that changed many aspects of how the company operated, including its strategy and marketing campaigns.
Learn more on Forbes: https://www.forbes.com/profile/du-shuanghua/
Rizhao Steel has seen success in its new direction under Shuanghua Group ownership. Following their purchase in 2010, Rizhao Steel has seen massive profits each year, mainly to operational improvements made by Shuanghua