omniture

General Steel Holdings, Inc. Receives Business License Approval for Its Joint Venture in Shaanxi Province

2007-07-09 20:29 920


BEIJING, China, July 9 /Xinhua-PRNewswire-FirstCall/ -- General Steel Holdings, Inc. ("General Steel", OTC Bulletin Board: GSHO), China's first U.S. publicly traded steel company, announced today it has received business license approval for its Joint Venture with Shaanxi Longmen Iron & Steel Group Co., Ltd. ("Long Steel") in Shaanxi province.

The Joint Venture assumes existing operating units of Long Steel. Key units within the Joint Venture include rolling mill, iron and steel making facilities. Initial production capacity will be 3 million tons annually and focus on rebar and related products.

Long Steel is the largest steel producer in Shaanxi province. In 2006, it was ranked by the National Statistics Bureau among the top 50 steel companies in China.

Henry Yu, CEO and Chairman of General Steel stated, "After further discussions with the government, we changed our strategy away from acquiring the company in favor of a 60% position in a Joint Venture. This allowed us to gain quicker licensing approval from the government."

John Chen, CFO of General Steel, further commented, "The decision to pursue a Joint Venture structure also allowed us to be selective in the units included in the deal. We were able to eliminate less efficient assets and concentrate on core operations for rebar and related products. This places us in an even stronger position to take advantage of the growing infra-structure and building development going on in China's western region."

About General Steel Holdings, Inc.

General Steel Holdings, Inc. operates in China through subsidiaries in Shaanxi, Inner Mongolia and Tianjin. Primary product lines include hot-rolled carbon and silicon steel sheets, rebar and seamed and seamless pipes. Total production capacity is 3.5 million tons. The company sells its products nation-wide using distributors and sales offices. For more information, visit http://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. Such forward-looking statements may be affected by inaccurate assumptions or by known or unknown risks or uncertainties. Actual results and performance may vary significantly from those expressed or implied by the statements herein. For factors that could cause actual results and performance to vary, perhaps significantly, from these forward-looking statements, please refer to the Company's Form 10-K, filed with the Securities and Exchange Commission, and other subsequent filings. 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 more information, please contact:

Ross Warner

General Steel Holdings, Inc.

Tel: +86-10-5879-7346 (Beijing)

Email: ross@gshi-steel.com

Skype: ross.warner.generalsteel

Source: General Steel Holdings, Inc.
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