How Du Shuanghua Changed The Steel Industry
Entrepreneurs are known for realizing growth opportunities in areas not realized by most. They also pursue the capacity of establishing their business in an industry full of competitors. This is what Du Shuanghua, a self-made billionaire, did in the steel industry. His wealth has been mostly acquired from exploiting the steel industry and gaining numerous returns from it. Apart from being a businessman, he also is known for his philanthropic activities towards youth causes by actively issuing donations. Du Shuanghua has appeared on the Forbes List in 2021 for being among the billionaires list and also in 2019 for being among China’s top rich men.
Rizhao Steel and Du Shuanghua’s Involvement
Du Shuanghua founded Rizhao Steel in 2003 with the aim of becoming one of the greatest steel producers in the world. He was able to quickly establish it and run it successfully for about eight years. He, however, realized that the government was not assisting as much in providing funds for its expansion. This made him seek partnership with Shandong Steel.
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It is a Chinese steel making company based in Jinan. The company was formed in 2008 out of the merger of two steel producers owned by the government. Jinan Iron and Steel Group combined efforts with Laiwu Steel Group to make Shandong Iron and Steel Corp. Both companies were rated as among large steel producers in the country at that time.
Change of Ownership of Rizhao Steel
In order to save Rizhao Steel from collapsing, Du Shuanghua saw it best to sell 67% of its shares to Shandong Steel so that it could assist in its revitalization. However, he later realized that his efforts could be making the privately owned steel company into a state owned company. This made him sell out his 30% shares at low prices to a Hong Kong business, Kai Yuan Holdings.