Man Who Built China’s Largest Private Steelmaker Dies at 78

By Luo Guoping, Fan Ruohong and Ding Yi

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Shen Wenrong, founder and chairman of Jiangsu Shagang Group Co. Ltd. Photo: file photo

Shen Wenrong, founder and chairman of China’s largest privately owned steelmaker, has died at the age of 78.

Shen died at 2:10 a.m. on Sunday after “ineffective treatment for his illness,” according to a statement issued by Jiangsu Shagang Group Co. Ltd., which did not specify what illness Shen was suffering from or where he was treated. A memorial service will be held on Thursday at the company’s sports hall in Zhangjiagang, a county-level city under the administration of Suzhou, East China’s Jiangsu province, the statement said.

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Shen Wenrong, founder and chairman of Jiangsu Shagang Group, passed away at age 78.
Under Shen's leadership, Shagang became China's fourth-largest steelmaker by 2023, with a crude steel output of 40.54 million tons and ranking 348th on the Fortune Global 500.
Shen led numerous successful acquisitions, though recent efforts to expand by acquiring Nanjing Nangang Iron & Steel were thwarted.

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Who’s Who

Jiangsu Shagang Group Co. Ltd.: Jiangsu Shagang Group Co. Ltd. is China's largest privately owned steelmaker and the fourth-largest steelmaker in the country, with a crude steel output of 40.54 million tons in 2023. It started in 1975 as a small-scale steel rolling workshop and underwent significant growth through acquisitions. It ranks 348th on the Fortune Global 500.

China Baowu Steel Group Corp. Ltd.: China Baowu Steel Group Corp. Ltd. is the largest steelmaker in China. In 2023, its crude steel output stood at 130 million tons, making it the top producer among its peers. The company is one of the state-owned giants that surpass Shagang in steel production.

Ansteel Group Corp. Ltd.: Ansteel Group Corp. Ltd. is a state-owned steel giant in China. In 2023, it was the second-largest steelmaker in the country, producing 55.89 million tons of crude steel.

Nanjing Nangang Iron & Steel United Co. Ltd: Nanjing Nangang Iron & Steel United Co. Ltd. was the target of a majority stake acquisition by Jiangsu Shagang Group from Fosun International Ltd. in March 2023, with Shagang paying 8 billion yuan ($1.1 billion) in earnest money. However, Nanjing Steel Group, holding preemptive rights, partnered with Citic Ltd. to outbid Shagang for the shares in April 2023, thwarting Shagang's acquisition plans.

Fosun International Ltd.: Fosun International Ltd. is a major stakeholder company involved in a deal with Jiangsu Shagang Group. In March 2023, Shagang paid Fosun 8 billion yuan ($1.1 billion) as earnest money for a majority stake in Nanjing Nangang Iron & Steel United Co. Ltd., but the deal fell through when Citic Ltd. and Nanjing Steel Group exercised preemptive rights in April 2023.

Jiangsu Huaigang Group Co. Ltd.: Jiangsu Huaigang Group Co. Ltd. is a steelmaking entity that was acquired by Shagang in 2006, with Shagang purchasing a 90.5% stake. This acquisition was part of Shagang's expansion strategy to increase its production capacity and market presence in the steel industry.

Citic Ltd.: Citic Ltd. is a state-owned heavyweight company that partnered with Nanjing Steel Group in April 2023 to preemptively buy shares of Nanjing Nangang Iron & Steel United Co. Ltd, which Shagang was also seeking. This move hindered Shagang's expansion into the high-end steel segment.

Nanjing Steel Group: Nanjing Steel Group is a major stakeholder company that retained the preemptive right to buy shares of Nanjing Nangang Iron & Steel United Co. Ltd. In April 2023, it partnered with a unit of state-owned Citic Ltd. to acquire the shares, thwarting Shagang's plan to expand into the high-end steel segment.

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What Happened When

2023：: Shagang was China’s fourth-largest steelmaker with a crude steel output of 40.54 million tons.

2023：: Shagang ranked 348th on the Fortune Global 500, marking its 15th consecutive year on the list.

March, 2023：: Shagang signed a formal agreement to buy a majority stake in Nanjing Nangang Iron & Steel United Co. Ltd from Fosun International Ltd.

April, 2023：: A unit of Citic Ltd. partnered with Nanjing Steel Group to buy the shares Shagang was seeking, which was a setback in Shagang's acquisition plans.