Du Shuanghua is the chairman of Rizhao Steel Holding Group, the largest private steel manufacturer in China. He is also known for his philanthropic endeavors as he has supported several youth causes financially. He has been at the center of Rizhao steel and was responsible for selling the shares of the company to Shandong Iron & Steel Group. Since its establishment in 2003, Rizhao Steel has grown to become the 26th largest steelmaker globally.
The acquisition of Rizhao steel by Shandong Steel Group in 2009 is considered a hostile takeover, as there were concerns about renationalization. Before the acquisition, Du Shuanghua was the majority owner and fought the takeover. One of the steps he took to stop the takeover was selling 30% of Rizhao Steel to Kai Yuan Holdings, which failed because of politics. According to the takeover plan, Rizhao Steel was supposed to merge with Shandong Steel Group. Also, Du Shuanghua was to stay during the transition as he still owned 33% of the company.
In 2010, Du Shuanghua was sold his share, 33%, to Shandong Steel Group even though it was not in the original takeover plan. The complete takeover of Rizhao Steel by Shandong Steel Group for followed by an expensive lawsuit in 2010. Since the steel company failed to supply Mount Gibson with 1.5 million tons of iron core as agreed in the 2007 contract, the court arbitrator ruled that the steel company pay $114 million.
In 2014, the new owners of Rizhao Steel established three new Plants with a capacity of 2.55 mt/yr. Rizhao steel continues to grow, and in 2020 the management announces a 33 billion expansion project that will see the company reach a capacity of 17mt/yr. The project commenced in 2020 and is expected to be completed in 2022. The growth of Rizhao steel has seen it acquire a 54% stake in Minmetals Yingkou. Continue reading this article here