The resignation of the chairman opens the internal crisis of the metallurgy of the province of Hebei

The chairman of Hebei Iron and Steel Group Wufang was shifted from his post. He left behind a loss-making enterprise in a crisis due to theft and wasteful expenses, including the acquisition furniture .. the deputy governor of the Hebay province held a meeting of the company and announced a change in management.

At the meeting, Yufang informed the highest leadership about the serious problems of the company and the next day he resigned from the post of chairman from Hebei Iron and Steel Company, Shenzhen. Without calling anyone, Yufang said that many employees fought for the company, although some subsidiaries relied only on loans to survive.

“Problems are serious and existed for a long time,” Yufang said. “The losses of funds are very shocking, the group’s operations and finances in an extremely difficult situation. Hebei should confirm the worthy image of the largest company for the production of steel in China, ”he added.

Despite the fact that the position of the subsidiary Shenzhen is more profitable, its net profit fell by 68.2 percent to 148, 29 million Hong Kong dollars during the first three quarters. While the Chinese government wants to make steel companies more profitable.

“Hebei Iron and Steel Group does not work as effectively as other large state steel companies, for example, Baosteel,” said Sarah Van, an analyst with Masterlink Securities. In addition, liang Jinley, chairman of the State Guangxi liuzhou Iron and Steel (Group), is under investigation in the case of a “serious violation of the discipline” by the leadership.