HEBEI STEEL shocking losses in Hebei Province

Huge foreign investments invested in Hebei Iron and Steel became the reason for a more thorough verification of investigators after accusing of their misuse by the company and, which caused the resignation of its chairman Wang Yufang.

Hundreds of millions of dollars were spent during the Van Yufang department of the third largest steel company in the world acquiring objects in Africa, Canada and the United States. Even a few weeks before the leadership of the Communist Party of China tore his reign, he pursued new foreign goals.

Daniel Rosen Partner of the consulting Rhodium Group USA said that "when a company, such as Hebei Iron and Steel, is faced with a management or execution crisis, its foreign operations can be violated or associated with judicial laws. Since, companies in many countries are interested in Chinese entrepreneurs because they offer the prospect of beneficial ties with Chinese However, it often turns out that the inexperience of many Chinese firms, especially state -owned operations, represents more risks than benefits. ”

At the moment, there are many uncertainty on the specifics of the data presented by Hebei Iron and Steel, which belongs to the government of the Northeast Province of Hebei, and last year 428 million tons of steel were produced in accordance with WSA.

Vana Yufang, as the chairman of the company, was replaced by Yu Yun, as stated at a meeting of top managers of the company. The company's website reports that the money, resources and profit of some subsidiaries were lost, and the problems spread widely and existed for a long time, as a result of which there was a shocking loss of funds.