(Shaanxi, 12th) – The downturn in China’s real estate market has taken a heavy toll on the steel industry, leading to the shocking collapse of the “billion-dollar” steel giant, Dongling Group. The company’s bankruptcy has also dragged down its subsidiaries, leaving over 18,000 employees facing unemployment. The news has sent shockwaves through the industry and raised serious concerns in the market.
According to reports from Chinese media, industry experts have identified several factors behind Dongling Group’s bankruptcy, including overexpansion, market fluctuations, and poor management. Additionally, some analysts believe that the company’s business model was too closely tied to China’s real estate sector. As the real estate market has been in a prolonged slump for several years, Dongling’s financial health weakened, leading to its eventual downfall.
The steel industry, already struggling with a sharp decline in domestic demand, has been forced to sell at low prices abroad, which has caused significant pressure on the global steel market. The industry’s massive inventory levels remain a challenge, and the outlook for the future is uncertain.
Dongling Group was a major private enterprise in Shaanxi, China. With its bankruptcy, the livelihoods of 18,000 employees are now at risk, and its supply chain is experiencing severe disruptions. Whether the authorities will step in to assist with restructuring or introduce rescue measures remains to be seen.
