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History of Liuzhou Steel Group Co Ltd

History of Liuzhou Iron & Steel

Liuzhou Steel produced some 18 million tonnes of crude steel in 2022, making it the 19th largest steelmaker in the world.

Liuzhou Steel Group Timeline

  • Foundation (1958): Guangxi Liuzhou Iron and Steel Group Co Ltd founded with first iron smelting blast furnace built on Luoqing River, establishing steel production in Guangxi province
  • Public Listing (2007): Liuzhou Iron and Steel Co Ltd successfully listed on Shanghai Stock Exchange, providing access to capital markets for expansion and modernisation
  • Corporate Governance Crisis (2015): Chairman Liang Jingli charged with corruption including embezzlement and bribery, company exited from Guangxi Steel Group amid governance reforms
  • Strategic Expansion (2017-2018): Announced relocation plans to coastal Guangxi Zhuang region for logistics advantages, acquired 100% equity in Zhongjin Metal Technology Co Ltd (1.2mt capacity blast furnace and BOF plant)
  • Investment Growth (2020-2021): Invested RMB 6.07 billion in Guangxi Iron and Steel supporting government consolidation guidance, acquired slag assets for RMB 300 million to strengthen resource integration
  • Operational Challenges (2022-2023): Dropped from FTSE All-World Index, Chairman Chen Yousheng resigned without successor appointment, experienced fatal coke plant chemical workshop fire highlighting plant equipment safety concerns
  • Losses and Modernisation (2024-2026): 2024 net loss of RMB 433m, medium plate mill modernisation plan, H1 2026 profit down 79% amid weak demand
Timeline shows regional Chinese steelmaker growth from provincial foundation to major producer, interrupted by governance scandals and operational challenges. Demonstrates how corruption and safety issues can undermine industrial development despite successful capacity expansion and strategic positioning.

The timeline below covers the history of the firm.

  • 1958: Guangxi Liuzhou Iron and Steel Group Co Ltd was founded in 1958.
  • 2007: Liuzhou Iron and Steel Co Ltd is listed on Shanghai Stock Exchange.
  • 2015: Liang Jingli, Chairman of Liuzhou Steel, charged with corruption.
  • 2015: Liuzhou Steel Group exits from Guangxi Steel Group.
  • 2017: Announces plans to relocate to coastal area of Guangxi Zhuang.
  • 2018: Liuzhou Steel Group acquires 100% equity in Zhongjin Metal Technology Co Ltd.
  • 2020: Liuzhou Steel invests RMB 6.07 billion in Guangxi Iron and Steel.
  • 2021: Acquires Slag Assets for approximately RMB 300 million.
  • 2022: Liuzhou Iron & Steel Co Ltd dropped from FTSE All-World Index.
  • 2023: Chen Yousheng resigns as chairman of Liuzhou Iron & Steel.
  • 2023: Coke plant chemical workshop fire results in one death and some injuries.
  • 2024: Liuzhou Steel records net loss of RMB 433 million in 2024.
  • 2025: Announces plan to raise RMB 300m for modernisation of medium plate mill.
  • 2026: H1 2026 net profit falls by 79% amid weak demand and rising costs.

Notes
  • 1958: First iron smelting blast furnace in Guangxi built on the Luoqing River.
  • 2015: According to media reports, Liang Jingli was charged with embezzlement and taking bribes.
  • 2018: The Zhongjin Metal Technology Co Ltd is a 1.2 million tonne per annum blast furnace and basic oxygen furnace steel plant operating in Yulin, Guangxi, China.
  • 2020: Purchase by Liuzhou of equity stake in Guangxi Iron and Steel was considered by analysts to be in line with central government’s guidance for sector-wide consolidation of the steel industry.
  • 2023: No successor was appointed, at the time of Chen Yousheng's resignation.
  • 2024: Liuzhou Steel produced 11.59 million tonnes of finished steel in 2024, down 9.45 percent year on year.
  • 2025: The present 2800mm steel plate production line was put into operation in 1974. Quality is now problematic. The proposed modernisation will involve renovation of the heating furnaces, upgrades to slab processing and structural renovation of the plate mill building.
  • 2026: Liuzhou Iron & Steel Co's H1 2026 revenue fell 4.96% year-on-year to RMB 32.95 billion, while net profit attributable to shareholders fell 79.31% to RMB 76.12 million, reflecting weak steel demand, rising raw material costs and industry overcapacity.