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8-K - GENERAL STEEL HOLDINGS INC | v184944_8k.htm |
EX-10.1 - GENERAL STEEL HOLDINGS INC | v184944_ex10-1.htm |
General
Steel Signs Joint Venture Framework Agreement with Shanxi Meijin Energy
Group
Beijing,
China, May 14, 2010 -- General Steel Holdings, Inc. (“General Steel” or the
“Company”) (NYSE: GSI), one of China’s leading non-state-owned producers of
steel products and aggregators of domestic steel companies, today announced that
it has entered into a Joint Venture Framework Agreement (the “Framework
Agreement”) with Shanxi Meijin Energy Group Co., Ltd. (“Meijin Energy”), a
corporation formed under the laws of the People’s Republic of
China.
According
to the Framework Agreement, General Steel will contribute approximately $64.7
million in cash or stock and shall thereafter hold a 55% interest in Shanxi
Meijin Iron and Steel Co., Ltd. (“Meijin Steel”) which is currently 100% owned
by Meijin Energy.
Meijin
Steel was founded in 2003 near the city of Taiyuan, in Shanxi province and has
approximately 1.2 million metric tons of crude steel production capacity and
approximately 1 million metric tons of annual pig iron production capacity. On
an annual basis, Meijin Steel has a processing capacity of 600,000 metric tons
of high speed wire and 900,000 metric tons of rebar and round
steel.
General
Steel’s Chairman and Chief Executive Officer Mr. Henry Yu commented, “The
backbone of our story is forming partnerships with companies that have
outstanding growth potential and this deal is no different. The joint
venture will realize the benefits of increased crude steel and pig iron
production and processing capacity, enhanced sales and marketing channels
through our well-established Longmen subsidiary as well as the opportunity to
secure raw materials at competitive prices. Our goal is to leverage
our deep understanding and expertise in this local market to achieve economies
of scale and improve profitability.”
“We are
excited about the respective strengths that each party will bring to this joint
venture,” said Meijin Energy’s Chairman Mr. Yao Jun Liang. “General
Steel brings access to the western capital markets and the success of its
Longmen facility, which is one of the largest integrated steel producers in the
region. This subsidiary’s established sales and marketing channels
combined with our supply of key raw materials, gives me great confidence that we
can increase market share as we benefit from rural China’s robust infrastructure
build out.”
About
Meijin Energy Group Co. Ltd.
Founded
in 1981, Meijin Energy Group Co., Ltd., headquartered in Taiyuan, Shanxi
province, is one of the largest non-state-owned coking and chemical companies in
China. Meijin Energy has over 3,000 employees and primarily processes and sells
coking coal and invests in the development of coking plants, coal mines, and
metal and construction materials.
About
General Steel Holdings, Inc.
General
Steel Holdings, Inc., (NYSE: GSI), headquartered in Beijing, China, operates a
diverse portfolio of Chinese steel companies. With 6.3 million metric tons of
aggregate production capacity, its companies serve various industries and
produce a variety of steel products including rebar, high-speed wire and
spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi
and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin
municipality. For more information, please visit
www.gshi-steel.com.
Information
Regarding Forward-Looking Statements
This
press release may contain certain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These statements are
based on management's current expectations or beliefs about future events and
financial, political and social trends and assumptions it has made based on
information currently available to it. The Company cannot assure that any
expectations, forecasts or assumptions made by management in preparing these
forward-looking statements will prove accurate, or that any projections will be
realized. Actual results could differ materially from those projected in the
forward-looking statements as a result of inaccurate assumptions or a number of
risks and uncertainties. These risks and uncertainties are set forth in the
Company's filings under the Securities Act of 1933 and the Securities Exchange
Act of 1934 under "Risk Factors" and elsewhere, and include: (a) those risks and
uncertainties related to general economic conditions in China, including
regulatory factors that may affect such economic conditions; (b) whether the
Company is able to manage its planned growth efficiently and operate profitable
operations, including whether its management will be able to identify, hire,
train, retain, motivate and manage required personnel or that management will be
able to successfully manage and exploit existing and potential market
opportunities; (c) whether the Company is able to generate sufficient revenues
or obtain financing to sustain and grow its operations; (d) whether the Company
is able to successfully fulfill our primary requirements for cash; and (e) other
risks, including those disclosed in the Company's Form 10-K, filed with the
SEC. Forward-looking statements contained herein speak only as of the
date of this release. The Company does not undertake any obligation to update or
revise publicly any forward-looking statements, whether to reflect new
information, future events or otherwise.
For
investor and media inquiries, please contact:
In
China:
Jing
Ou-Yang
General
Steel Holdings, Inc.
Tel:
+86-10-5879-7346
Email:
jing.ouyang@gshi-steel.com
Justin
Knapp
Ogilvy
Financial, Beijing
Tel:
+86-10-8520-6556
Email:
gsi@ogilvy.com
In
the United States:
Jessica
Barist Cohen
Ogilvy
Financial, New York
Tel:
+1-646-460-9989
Email:
gsi@ogilvy.com