Du Shuanghua Iron & Steel Group
Rizhao Steel is a firm with roots dating back to 2003. In 2019, they were ranked 26th out of the top 100 steel manufacturers worldwide and produced 14 million tonnes (mt) worth of liquid metal that year alone.
The only cost-cutting done has been through smaller details like mirrors or number plates which can be forgivable at this price point, considering how high-quality everything looks when you take your time inspecting each piece closely before buying it, of course.
In 2010, Du Shuanghua sold his remaining 33% stake in Rizhao to the local government for $500 million. The sale incurred a fine of 10 percent as compensation due to Mount Gibson’s breach of contract. Read more
In addition, he also ordered pickling and galvanizing lines made by Andritz after their recent acquisition, allowing them both opportunities abroad while maintaining production at home.
In 2014, Primetals signed a contract with ESP to supply 2 more lines for 1.7 million tons per year, each of 5 million tonnes in capacity by 2020.
By then, they had already been considering consolidation across four Chinese mills after realizing that there were too many manufacturers producing steel within close distance from one another, which caused rising costs due to competition among them all. Still, it wasn’t until 2019 when Contemplates finally made the decision.
In 2007 Rizhao Steel and Mount Gibson signed a 15-year contract under which the company committed to purchasing up to 1.5 million tons of iron ore every year from one another, starting in 2008.
The agreement is later renewed for an additional 10 years through 2027 at the same rate showing how vital this partnership has been over time (and continues) despite changes throughout both industries involved.
When the acquisition of Rizhao Iron & Steel by Shandong Steel Group was announced, it raised concerns about ‘creeping renationalization.
Before this deal CEO, Du Shuanghua tried selling 30% equity in his business at a low cost but failed as Hong Kong-listed Kai Yuan Holding Company Ltd., controlled by family relatives Hu Jintao’s administration (the Chinese president).