BEIJING, June 10, 2014 /PRNewswire/ -- General Steel Holdings, Inc. ("General Steel" or the "Company") (NYSE: GSI), a leading non-state-owned steel producer in China, announced today that it aims to accelerate its business transformation by establishing two investment entities and expanding its business scope to include other non-steel industries.
With the full support and approval of its Board of Directors, the Company is establishing two new investment entities that will serve as platforms for its expansion into industries that offer high-growth and high-margin, such as commodity e-commerce, asset leasing and financing, and clean technologies.
"While we remain confident in our steel business, we are excited about entering into other non-steel industries," said Henry Yu, Chairman and Chief Executive Officer of General Steel, "With the proven ability of our in-house talents, we have a unique opportunity to expand our business scope - one which we believe offers mitigated risks and high return potential. We will leverage our formidable corporate development team and sizable human capital to expand into non-steel industries that offer high growth potential, as well as higher profit margins. We have already identified and begun negotiations with a number of investment targets, and with our team's previous history of successfully selecting, acquiring, and integrating businesses, I feel optimistic with our accelerated business transformation. We look forward to providing more updates on these developments and anticipate unlocking considerable value for our shareholders."
About General Steel
General Steel, headquartered in Beijing, China, produces a variety of steel products including rebar, high-speed wire and spiral-weld pipe. The Company has operations in China's Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region, and Tianjin municipality with seven million metric tons of crude steel production capacity under management. For more information, please visit www.gshi-steel.com.
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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 most recent Annual Report on Form 10-K, filed with the United States Securities and Exchange Commission. 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.
Contact Us
General Steel Holdings, Inc.
Joyce Sung
Tel: +1-347-534-1435
Email: joyce.sung@gshi-steel.com
Asia Bridge Capital Limited
Carene Toh
Tel: +1-888-957-3362
Email: generalsteel@asiabridgegroup.com