In China, Rizhao Steel was the largest private steel manufacturer in the country. That is until 2010 when Shandong Iron and Steel Group Co Ltd, a state-operated steel manufacturer took a majority, 67% ownership in the company.
Steel manufacturing in China is mostly a state-run enterprise. Private steel manufacturers are few and far between and the country is working to consolidate manufacturers to create a more efficient industry. This is why China took action on Rizhao Steel, a company, majority-owned by the billionaire, Du Shuanghua.
Du Shuanghua did not want the state to take over his company, Rizhao Steel, and attempted to stop the takeover by selling a 30% equity stake in his company to Kai Yuan Holdings. However, the attempt didn’t work and Rizhao Steel was merged with Shandong Iron and Steel Group Co Ltd. In 2010 Rizhao Steel received a $114 million dollar breach of contract fine for the failure to keep up their commitment to purchase up to 1.5 million tons of iron yearly from Mount Gibson. Rizhao Steel continues to expand and innovate and makes 17 metric tons of steel annually. Read more
Du Shuanghua is the chair for the Rizhao Steel Holding Group and lives in Hengshui, China. Shuanghua established the company in 2003 before selling the majority stake to Shandong Steel. He is currently worth $1.3 billion and through various business deals and acquisitions has continued to maintain his wealth. Du Shuanghua is not only a businessman but also a philanthropist who donates to youth causes.