General Steel Begins Trial Production Run for Newly-Constructed Advanced Continuous-Rebar-Rolling Production Line
BEIJING, Nov. 11, 2013 /PRNewswire/ -- General Steel Holdings, Inc. ("General Steel" or the "Company") (NYSE: GSI), a leading non-state-owned steel producer in China, announced today that it has commenced a trial production run of a newly-constructed 1.2 million metric ton ("MMT") advanced continuous-rebar-rolling production line at its principal manufacturing facility, Shaanxi Longmen Iron and Steel Co., Ltd. ("Longmen Joint Venture"). The Company currently expects this new production line to reach full operation by the end of 2013.
This new 1.2 MMT continuous-rolling production line expands on the Company's successful launch of a 900,000 metric ton line in July of 2013. Longmen Joint Venture now has a total continuous-rolling capacity of 4.3 MMT, including 3.3 MMT of rebar and 1.0 MMT of high-speed wire. When the two newly-constructed continuous-rolling production lines located at the same facility in which steel billet is produced reach their designed efficiency, the Company expects to reduce overall production cost by approximately RMB 150 million per year by eliminating intermediate transportation, re-heating, and outsourced-processing costs.
"The launch of another continuous-rolling production line should further enhance our cost structure," said Henry Yu, Chairman and Chief Executive Officer of General Steel. "We are pleased the first line already reached its full capacity in early October and are confident the second line will ramp to full capacity by the end of this year. We expect the additional continuous-rolling capacity will contribute outstanding savings in our unit production cost, and ultimately deliver meaningful profitability improvements."
About General Steel Holdings, Inc.
General Steel Holdings, Inc., headquartered in Beijing, China, produces a variety of steel products including rebar, high-speed wire and spiral-weld pipe. The Company has operations in China's Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality with seven million metric tons of crude steel production capacity under management. For more information, please visit www.gshi-steel.com.
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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.
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