EX-99.3
4
v088414_ex99-3.htm
Unassociated Document
News
Release
General
Steel Holdings, Inc. Acquires Controlling Interest in Two Subsidiaries of its
Strategic Partner, Shaanxi Longmen Iron and Steel Group Co.,
Ltd.
BEIJING,
China, September 26, 2007 / Xinhua-PRNewswire/ -- General Steel Holdings, Inc.
("General Steel"), (OTC Bulletin Board: GSHO), China's first publicly traded
steel company in the US, announced that through its joint venture, Shaanxi
Longmen Iron and Steel Co., Ltd., ("Joint Venture") it has acquired controlling
interest in
two
subsidiaries of its strategic partner, Shaanxi Longmen Iron and Steel Group
Co.,
Ltd. ("Shaanxi Longmen Group"). Both acquisitions are accretive to
earnings.
The
Joint
Venture entered into an equity transfer agreement with Shaanxi Longmen Group
to
acquire its 74.92% ownership interest in its subsidiary, Longmen Iron and Steel
Group Co., Ltd. Environmental Protection Industry Development Co., Ltd.
("EPID"). The Joint Venture paid RMB 18,080,930 (approximately US$ 2,380,000) in
exchange for the ownership interest.
At
the
same time, the Joint Venture also entered into a second equity agreement with
Shaanxi Longmen Group to acquire its 36% ownership interest in its subsidiary,
Longmen Iron and Steel Group Co., Ltd. Hualong Fire Retardant Materials Co.,
Ltd. ("Hualong"). The Joint Venture paid RMB 3,287,980 (approximately US$
430,000) in exchange for the ownership interest. The Joint Venture is the
largest shareholder in the company.
About
the
New Subsidiaries
EPID
recycles and utilizes industrial waste products generated during the production
and processing of iron and steel to produce new construction materials, namely
construction blocks and tiles. Last year the company produced 97,000 cubic
meters of construction material and generated sales in excess of RMB 52,000,000
(approximately US$ 6,842,000).
Hualong
produces various fire retardant materials used in the production and processing
of iron and steel. Last year, it produced 30,000,000 tons of fire retardant
materials and had sales of nearly RMB 53,000,000 (approximately US$ 6,974,000).
At present, it sells exclusively to Shaanxi Longmen Iron and Steel Group Co.,
Ltd.
As
conditions of both Equity Transfer Agreements, all third quarter operating
results for both subsidiaries will be assumed by the Joint Venture starting
July
1, 2007.
Henry
Yu,
CEO and Chairman of General Steel said, "Both of these subsidiaries will
contribute positively to our earnings growth. We are happy to be enhancing
the
integration and efficiencies of our operation and at the same time expanding
our
relationship with our strategic partner, the Shaanxi Longmen Group, This is
another affirming step on our way to becoming one of the largest non-government
steel companies in China".
About
General Steel Holdings, Inc.
General
Steel Holdings, Inc., headquartered in Beijing, operates a diverse portfolio
of
Chinese steel companies. With 3 million tons aggregate production capacity,
its
companies serve various industries and produce a variety of steel products
including reinforced bar (rebar), hot-rolled carbon and silicon sheet and
spiral-weld pipe. The company has steel operations in Shaanxi province (central
China), Inner Mongolia province (northwest China) and Tianjin municipality
(northeast China). For more information, 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. Such forward-looking statements may be affected by inaccurate
assumptions or by known or unknown risks or uncertainties. Actual results may
vary materially from those expressed or implied by the statements herein. For
factors that could cause actual results to vary, perhaps materially, 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.
Contact:
Ross
Warner
General
Steel Holdings, Inc.
Tel:
(Beijing) 86-10-5879-7346
Email:
ross@gshi-steel.com
Skype:
ross.warner.generalsteel

EX - 99 . 3 4 v088414 _ ex99 - 3 . htm Un associated Document News Release General Steel Holdings , Inc . Acquires Controlling Interest in Two Subsidiaries of its Strategic Partner , Shaanxi Longmen Iron and Steel Group Co . , Ltd . BEIJING , China , September 26 , 2007 / Xinhua - PRNewswire / -- General Steel Holdings , Inc . ( " General Steel " ) , ( OTC Bulletin Board : GSHO ) , China 's first publicly traded steel company in the US , announced that through its joint venture , Shaanxi Longmen Iron and Steel Co . , Ltd . , ( " Joint Venture " ) it has acquired controlling interest in two subsidiaries of its strategic partner , Shaanxi Longmen Iron and Steel Group Co . , Ltd . ( " Shaanxi Longmen Group " ) . Both acquisitions are accretive to earnings . The Joint Venture entered into an equity transfer agreement with Shaanxi Longmen Group to acquire its 74 . 92 % ownership interest in its subsidiary , Longmen Iron and Steel Group Co . , Ltd . Environmental Protection Industry Development Co . , Ltd . ( " EPID " ) . The Joint Venture paid RMB 18,080,930 ( approximately US$ 2,380,000 ) in exchange for the ownership interest . At the same time , the Joint Venture also entered into a second equity agreement with Shaanxi Longmen Group to acquire its 36 % ownership interest in its subsidiary , Longmen Iron and Steel Group Co . , Ltd . Hualong Fire Retardant Materials Co . , Ltd . ( " Hualong " ) . The Joint Venture paid RMB 3,287,980 ( approximately US $ 430,000 ) in exchange for the ownership interest . The Joint Venture is the largest shareholder in the company . About the New Subsidiaries EPID recycles and utilizes industrial waste products generated during the production and processing of iron and steel to produce new construction materials , namely construction blocks and tiles . Last year the company produced 97,000 cubic meters of construction material and generated sales in excess of RMB 52,000,000 ( approximately US$ 6,842,000 ) . Hualong produces various fire retardant materials used in the production and processing of iron and steel . Last year , it produced 30,000,000 tons of fire retardant materials and had sales of nearly RMB 53,000,000 ( approximately US$ 6,974,000 ) . At present , it sells exclusively to Shaanxi Longmen Iron and Steel Group Co . , Ltd . As conditions of both Equity Transfer Agreements , all third quarter operating results for both subsidiaries will be assumed by the Joint Venture starting July 1 , 2007 . Henry Yu , CEO and Chairman of General Steel said , " Both of these subsidiaries will contribute positively to our earnings growth . We are happy to be enhancing the integration and efficiencies of our operation and at the same time expanding our relationship with our strategic partner , the Shaanxi Longmen Group , This is another affirming step on our way to becoming one of the largest non - government steel companies in China " . About General Steel Holdings , Inc . General Steel Holdings , Inc . , headquartered in Beijing , operates a diverse portfolio of Chinese steel companies . With 3 million tons aggregate production capacity , its companies serve various industries and produce a variety of steel products including reinforced bar ( rebar ) , hot - rolled carbon and silicon sheet and spiral - weld pipe . The company has steel operations in Shaanxi province ( central China ) , Inner Mongolia province ( northwest China ) and Tianjin municipality ( northeast China ) . For more information , 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 can not 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 may vary materially from those expressed or implied by the statements herein . For factors that could cause actual results to vary , perhaps materially , 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 . Contact : Ross Warner General Steel Holdings , Inc . Tel : ( Beijing ) 86 - 10 - 5879 - 7346 Email : ross@gshi-steel.com Skype : ross . warner . generalsteel