Du Shuanghua and Sale of Rizhao Steel
The steel industry in China is a significant contributor to the country’s economy. In 2010, Du Shuanghua had been president of Rizhao Steel for thirteen years. He was an indispensable part of the company and its success. But in 2010, Du decided to sell Rizhao Steel for $2 billion. It was a difficult decision, but Du had a plan.
Who is Du?
Du Shuanghua has been president of Rizhao Steel since 1993. Rizhao Steel is the eleventh largest steel company globally and the third-largest in China. It was a difficult decision for Du to make, but he had his reasons.
What motivated him? he wanted to help his country grow through reform. Du needed a capital injection from outside that would allow him to modernize Rizhao Steel’s plant and machinery. Du saw no other option than to sell his company for $2 billion cash to accomplish this goal.
The sale of Rizhao Steel helped China’s economy grow because it led to an infusion of more capital into the industry, which helped modernize production processes and machinery, resulting in increased output. Get connected with Du Shuanghua on crunchbase.com
The Sale of Rizhao Steel in 2010
Du Shuanghua had been president of Rizhao Steel for thirteen years before selling the company in 2010. He was an indispensable part of the company and its success; however, he saw changing times. China’s economy was beginning to shift from an export-driven economy to one that relied on internal consumption. Du knew it was time for a change but had a plan. The steel industry in China is a significant contributor to the country’s economy.
What did it mean for China and the Economy Now?
Du had a plan for the money he made off of the company. He invested in banks and other businesses, and a football team. His investments are continuing to grow and generate more income. Because Du is investing in these industries, it’s good for China as a whole. Businesses that are invested in will expand and create more jobs for people. Rizhao Steel is now owned by Wendel, an international steel company based out of France.
Du Shuanghua was a crucial figure in the sale of Rizhao Steel in 2010. He is a trusted advisor and confidant to the Rizhao Steel management and the elected Party Secretary of the Chinese People’s Political Consultative Conference. His involvement in the Rizhao Steel sale is a prime example of his influence.