Rizhao Steel and Mount Gibson have agreed to a 15-year contract in which Rizhao will buy up to 1.5 million tons of the stuff ore per year from Mount Gibson. For more details, please visit the remarks for the year 2010.
The hostile takeover of Rizhao Iron and Steel by Shandong Steel Group in 2009, which raised fears of ‘creeping renationalization,’ was a hostile takeover of one of the’s biggest non-state steel enterprises by a state-owned competitor. Du Shuanghua, one of China’s wealthiest men, possessed a majority stake in Rizhao Steel before the takeover. Du tried to avert the hostile takeover by selling a 30% equity investment in a company [at a minimal price] to Kai Yuan Holdings, a Hong Kong-listed business owned by Hu Jintao’s relatives. Mr. Hu allegedly regarded this plan too politically hazardous hence it failed.
The sale of Du’s 33% stake in the company was not included in the 2009 budget. Instead, in 2009, Rizhao Steel merged with Shandong Iron & Steel, followed by a reorganization. Shandong Iron Group would possess 67% of the restructured company, while Du Shuanghua will hold 33%. Du Shuanghua remained in orders of a small area in this scenario.
According to a court arbitrator, Rizhao failed to meet its obligations under the 2007 iron ore supply agreement with Mount Gibson, leading the latter to forfeit $114 million. ESP lines 1, 2, and 3 with a strip width of 1600 mm were put into service in 2013. Lines 4 and 5, with 1,300 mm strip widths, were ordered in 2014 and completed in 2016. On all five bars, the strip is stretched to a minimum thickness of 0.8 mm (with a capacity of 11 mt). In 2014, Andritz’s pickling and galvanizing plant (a multi-process line) produced 700,000 tonnes of galvanized steel. Read More Here: https://www.tycoonstory.com/entrepreneur/rizhao-steel-how-du-shuanghua-leads-rizhao-steel-toward-sustainable-development/