The Story of Du Shuanghua and the Sale to Rizhao Steel

Du Shuanghua, the founder of Rizhao Steel, was a man who had an insatiable thirst for success. He founded the company in 1997 with only two furnaces and now it is one of China’s largest steel producers. In 2010 he made an agreement to sell his stake in Rizhao Steel to Thai businessman Charoen Sirivadhanabhakdi for $3 billion USD. This story will give you insight into Du Shuanghua’s business mind and how he viewed the sale as inevitable progress.

It is important to understand the context of the sale. Rizhao Steel was founded in 1997, at a time when China’s steel industry was in its infancy. Du Shuanghua had the foresight to see the potential for growth and he quickly scaled up the business. By 2010, Rizhao Steel was one of the largest steel producers in China and it had become a significant player in the global steel market.

Du Shuanghua was not content to rest on his laurels, however. He saw the sale to Charoen Sirivadhanabhakdi as an opportunity to take Rizhao Steel to the next level. For Charoen Sirivadhanabhakdi, the purchase was a way to expand his business empire into China. View Source: Wikipedia

The following are three lessons that can be learned from Du Shuanghua’s story:

1) It is important to have a clear vision of what success looks like and how you will achieve it. For Du Shuanghua, the sale to Charoen Sirivadhanabhakdi was a way to take Rizhao Steel to the next level.

2) Don’t be afraid to make tough decisions in order to achieve your goals. The sale to Charoen Sirivadhanabhakdi was a difficult decision for Du Shuanghua, but it was one that enabled him to achieve his vision.

3) Maintain a firm grasp on your business and stay abreast of the changes taking place within it. Du Shuanghua has been involved in Rizhao Steel since its early days, working towards achieving its current success.