Du Shuanghua – The Sale of Rizhao Steel in 2010: A history in pictures.
In 2010, the world saw a watershed moment when Du Shuanghua, a small steel company in Rizhao, Jiangsu Province, announced it was selling its steel mills to the Chinese government for $3.9 billion. Since the early days of China’s modernizing process, the sale represented a radical change for Shuanghua, based in Jinggangshan, Shanxi Province. Shuanghua was founded in the 1930s, by Zhang Xingxu and his father, Zhang Xuezuan. After World War II, Zhang Xingxu decided to focus on making agricultural engines instead of steel products. But in the 1960s and 1970s, he again restarted the production of steel products because of the rapidly expanding demand in China for cars and other industrial goods. In 1990, Zhang Xizhong died, and his son Jianghan took over the company’s management. Jianghan is credited with developing Shuanghua.
Jianghan’s Legacy at Shuanghua
Jianghan’s legacy at Du Shuanghua is a mixture of success and failure. On the one hand, Jianghan maintained the company’s production capacity while also expanding into new markets. He also helped introduce new products and technologies to Du Shuanghua’s products. However, Jianghan also made some critical mistakes. For example, he didn’t appreciate the changing market conditions and abandoned traditional methods of steel manufacture in favor of more automated processes. This led to a decline in quality and sales over the years.
What the Sale Means for the Future of Steel in China
The sale of Du Shuanghua’s steel mills to the Chinese government represents a watershed moment for the Chinese steel industry. Du Shuanghua is abandoning its traditional production model and moving towards a more modern, automated system by selling its mills. This change will significantly impact the quality and competitiveness of Chinese steel products. This is especially true since Du Shuanghua’s mills are located in China’s most challenging economic environments.
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The sale of Rizhao steel marked a watershed moment in China’s steel industry history. Jianghan’s success at Du Shuanghua has left a lasting legacy, and the company’s success in the market today is a testament to his hard work and dedication. The sale showed that Chinese steel can be successful and that there is no reason to be afraid of innovation and change.