BEIJING, Sept. 11, 2012 /PRNewswire-FirstCall/ -- General
Steel Holdings, Inc. ("General Steel" or "the Company") (NYSE:
GSI), one of China's leading
non-state-owned producers of steel products and aggregators of
domestic steel companies, today announced that it has completed the
first stage of a series of benchmarking programs, which have
resulted in efficiency improvements at its Longmen Joint Venture
("Longmen JV"), the Company's principal manufacturing facility. The
Company expects these measures, as well as other planned
improvements, to reduce its manufacturing costs per ton of crude
steel produced.
"As we continue to scale production at Longmen JV, we have
undertaken a number of initiatives to better address volatility in
steel and raw materials pricing to reduce our per-ton manufacturing
expenses, drive margin expansion and improve our bottom-line
performance," said General Steel Chairman and Chief Executive
Officer, Mr. Henry Yu. "Strong
customer demand in Western China,
coupled with the ongoing realization of benefits from our unified
management agreement with Shaanxi Steel and Shaanxi Coal, position
us well for growth over the longer-term. The successful completion
of this initial phase of our benchmarking program is expected to
drive interim efficiency, making us less susceptible to potential
ASP pressure, and helping accelerate our path to sustained
profitability."
Following an in-depth benchmarking analysis of its operations
and those of its peers, Longmen JV implemented a series of
initiatives aimed at optimizing production equipment to maximize
output, reduce operational costs and leverage economies of scale.
The optimization initiatives undertaken by Longmen JV in 2012
to-date include:
- Improvements in raw material procurement capabilities, reducing
the cost of both iron ore and coke;
- Tight raw materials purchasing controls and inventory
management;
- Optimization of manufacturing techniques and production
management systems at each step in the steelmaking process;
and,
- Enhancements to certain non-manufacturing capabilities such as
quality control, safety and finance.
"We are particularly encouraged by the recently announced
National Development and Reform Commission approvals of a total of
60 new infrastructure projects, which involve investment of over
US$150 billion. These projects
include the construction of 25 rail and subway lines, and
development of another 13 roads. Many of these projects are
situated in or near Shaanxi
Province, which bodes well for our Longmen JV subsidiary."
Mr. Yu added, "We remain confident in our ability to execute on our
primary strategic objectives and are excited about what the future
holds for General Steel as we continue to grow our internal
capabilities and expand our reach through partnerships with leading
State-owned Enterprises. We believe that these efforts, combined
with future initiatives and an improving macro environment, will
help improve visibility and give General Steel greater control over
the changing market landscape."
About General Steel Holdings, Inc.
General Steel Holdings, Inc., (NYSE: GSI), headquartered in
Beijing, China, operates a diverse
portfolio of Chinese steel companies. With 7 million metric tons of
crude steel production capacity under management, its companies
serve various industries and produce a variety of steel products
including rebar, high-speed wire and spiral-weld pipe. General
Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous
Region and Tianjin municipality.
For more information, please visit www.gshi-steel.com.
To be added to the General Steel email list to receive Company
news, please send your request to generalsteel@tpg-ir.com.
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 Form 10-K, filed with the SEC.
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
In China:
Jenny Wang
General Steel Holdings, Inc.
Tel: +86-10-5775-7691
Email: jenny.wang@gshi-steel.com
In the US:
The Piacente Group, Inc.
Investor Relations
Brandi Floberg or Lee Roth
Tel: (212) 481-2050
Email: generalsteel@tpg-ir.com
SOURCE General Steel Holdings, Inc.