Oct 5 2005
General Steel Holdings has announced that the board of directors of General Steel Holdings and Baotou Iron and Steel have signed a joint venture agreement. The agreement covers the production of specialty steel products including alloy and carbon structure steel as well as finished steel for industrial use. The name of the joint venture will be Baotou Steel-General Steel Special Steel Joint Venture Company Limited.
The joint venture will establish a hot rolling facility in Kundulun District, Baoutou City, Inner Mongolia to produce alloy rods, tubular billets, round bars, channels and I-beams. The registered capital of the joint venture will be approximately $24,000,000. The products of the joint venture will be sold in the Chinese market and abroad.
According to Zuosheng Yu, CEO and Chairman of General Steel, "This is a historic day for General Steel and the beginning of a very meaningful relationship with our joint venture partner, Baotou Steel. The purpose of the joint venture is to strengthen the economic cooperation and technical exchanges between the two companies in order to improve and increase production capacity and to develop new products and gain competitiveness in both domestic and international markets. We expect the joint venture will significantly impact the production of steel products in terms of quality, variety and price through adopting the latest technology and production methods. We will also adopt advanced management methodologies in order to optimize profits and control costs. We are honored to be working with one of the leading steel producers in China and feel confident that there will be tremendous benefits for both companies."
The production scale of the joint venture will be 600,000 metric tons of specialty steel products a year. General Steel Holdings, Inc. and its subsidiary, Tianjin Da Qiu Zhuang Metal Sheet Co., Ltd., ("DQ") shall own 51% of the joint venture and Baotou Steel shall own 49%.
Baotou Iron and Steel was reorganized in June 1998 from Baotou Iron and Steel Company (established in 1954). It is a large producer of iron and steel and has the largest scientific research and production base of rare earth products in China. It is also the most important basic industry and the first enterprise whose total sales is over 10 billion RMB in Inner Mongolia Autonomous Region. It is one of the top 100 largest companies in China.
http://www.gshi-steel.com/