Mr Du Shuanghua board chairman and real owner of Rizhao Steel, made a speech on September 7th which was concluded and published on the website, CBN confirmed the news by consulting senior official of Rizhao Steel.

Mr Du, who always kept silent to the case of Shandong merge, lately made comments that “It’s wrong to block the building of Big Steelmaker in Rizhao so I agreed the merge with Shandong Steel.”

Mr Du was quoted as saying that “To be honest, I am reluctant to be regrouped as a part of Shandong Steel, But, I sincerely approve the project to launch quality steel base in Rizhao. Thus, I concede to the regrouping agreement. Rizhao Steel is unable to develop the Big Steelmaker project, since we are congenitally deficient in it.”

He added that “It’s true that Rizhao makes some achievements, as we widely expand the capacity by building new projects, even without government’s approval however, it’s against scientific development strategy.“

The Chairman encouraged its staff by saying the merge will take about 3 to 4 years to be finished and we still can operate the companies by renting them from Shandong Steel to create more wealth.

According to Shandong Province, the building of Rizhao quality steel base is a pillar project in developing the southern region in Shandong, thus the governments are determined to boost the regroup of Rizhao Steel.

According to the regrouping agreement signed by Shandong Steel and Rizhao Steel on September 6th Rizhao Steel controlled six steel subsidiaries will be evaluated as net assets which is to be injected into the JV between Shandong Steel and Rizhao Steel. Insiders thought Mr Du would retreat from the JV at last.

(Sourced from MySteel.net)
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