General Steel Holdings Inc.

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As the sole NYSE-listed steel company with Chinese concept, General Steel Holdings, Inc., headquartered in Beijing, operates a diverse portfolio of Chinese steel companies. With 6.3 million tons aggregate production capacity, its main products include rebar, hot-rolled carbon and silicon sheet, spiral-weld pipe and high-speed wire. It has steel operations in Shaanxi province (central China), Inner Mongolia autonomous region (northwest China) , Tianjin municipality (northeast China) and Guangdong Province (Southern China). In 2008, the sales income reached RMB 9.2 billion Yuan, and can expect a better performance in 2009.

The strategitic goal of the company is to become one of the biggest and the most competitive private-owned steel companies by actively participating in the industry consolidation in China relying on effective financial capitals by means of merger, cooperation and self-development.

Its mission is to acquire government-owned steel companies and selected entites with outstanding potential, and increase their profitability and efficiencies with the infusion of applied western management practices, advanced production technologies and capital resources.

Leveraging the relationship with local governments and working with the managements in enterprises, it has acquired some selected assets at good prices. Relying on the international platform of both the capital market and being a public company, it established the joint ventures with Baogang Group, Shaanxi Longmen Steel Group and Maoming Hengda Steel Group and have controlling interest positions in them, which is evidence of our strategic operations. It is actively seeking additional assets to acquire by merger and restructuring, making efforts to expand the company to be one of key members in China’s steel industry.

Via a variety of raising channels, it has attracted many investors who are interested in China’s steel industry. General Steel Holdings has been freqently featured by famous media, such as the Wall Street Journal, Business Weekly and CNN. The stock of GSI has been a weatherglass for foreign steel investors and security analysists to look into China’s steel shares.

At present, it has controlling interest in four companies in their portfolio of assets:

Shaanxi Longmen Iron and Steel Co., Ltd.
Tianjian Daqiuzhuang Metal Sheet Co., Ltd.
Baotou Steel – General Steel Special Steel Joint Venture Co., Ltd.
Maoming Hengda Iron and Steel Group Ltd.
With great development potential, all four companies are exceptional and operate in selected niche markets.

General Steel Holdings, Inc. Advantages

Lean Operations - China’s steel industry is dominated by production facilities owned
by the government (State Owned Enterprises (SOE’s)). Many SOE’s are burdened with staffing, social and production requirements that inhibit efficiencies. As privately managed facilities, the company operates with leaner operating constrictions and swifter decision making processes. What is more, it acts as an integrated platform with internationalized raising channels, aiming to fulfill our expansion strategy---to be the biggest and the most competitive private-owned steel company, by virtue of the industry consolidation in China. It would expand its market share by actively participating in merger and restructuring state-owned and private-owned steel entities with great development potential, and diversify its products for various demands.

Western Management – Western management structures and systems bring about accountable operating efficiencies. The management mode is that the original management team will maintain its role in managing. By optimizing the old internal management system, it will make efforts to “promote private-own entities and reform state-owned ones,” making them more efficient, transparent and standardized. After having succesfully acquired a few middle and small steel businesses, it will work more on resource-sharing and mutual complement between the group and the companies considering their locations, characteristics of their pillar products and niche markets, and take centralized procurement and lower unit production cost.

GAAP - Internationally recognized U.S. GAAP systems and procedures for all accounting and financial functions, thus ensuring full disclosure and transparency in financial reporting.

SEC Compliant - Fully compliant with all reporting and transactional requirements mandated by the US Securities and Exchange Commission (SEC), thereby strengthening the full faith and confidence of investors in management operations.

Contact Information:

Add: Room 2315, Kuntai International Center, 12 B Chaowai Dajie, Chaoyang District, Beijing
Tel: 86-10-58797340
Fax: 86-10-58797344