Du Shuanghua: Felt Peaceful towards Restructuring

On September 6, Shandong Steel Group and Rizhao Steel Group signed a contract on assets restructuring and cooperation: Rizhao Steel contributes all its fixed property and Shandong Steel contributes cashes to increase the investment in Rizhao Steel Co., Ltd, Shandong Steel Group which was founded in February 2009 by Shandong Steel. In the new company, Shandong Steel takes 67% of the shares while Rizhao Steel and its chairman Du Shuanghua take the rest 33%.

On the following day after signing the contract, Du Shuanghua said to the 150 executives of Rizhao Steel: “I didn’t feel upset. Actually, I felt quite peaceful towards the restructuring.” He also denied the saying that Rizhao Steel was forced to accept the provisions of restructuring.

Du Shuanghua, 44, founded a company named Hebei Jinghua Pipe in 1993 and founded Jinghua Innovation Group in 2003. In order to solve the problem of raw materials, Jinghua Innovation Group invested in founding Rizhao Steel in Rizhao, Shandong in 2005. Now Rizhao Steel’s annual output of steel is 13 million tons. In 2008, Du Shuanghua was listed as the second richest man in China with the assets of 35 billion yuan (USD 5.13 billion).

In Du Shuanghua’s opinion, the signing of restructuring contract is a great turning point for the development of Rizhao Steel. He thought  that the company’s development strategies will see great changes from now on. He also asked the executives and employees of Rizhao Steel to put their heart and soul into the new company like ever before.

It is said that Du plans to invest into the other fields. Meanwhile, he will never neglect any chance of acquisition and merging in the Chinese steel industry.