General Steel Holdings Opens Branch in Chengdu, Sichuan Province

December 8, 2008

BEIJING, Dec. 8 /PRNewswire-Asia-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 aggregator of domestic steel
companies, today announced the opening of its Longmen joint venture subsidiary
branch office in Chengdu, Sichuan (“Chengdu Longmen branch”).

The Chengdu Longmen branch will primarily be focused on sales and
marketing efforts to meet increased demand for steel building materials
generated by extensive reconstruction following the 8.0 magnitude Wenchuan
earthquake in the region on May 12, 2008. In November of 2008, General
Steel’s Longmen joint venture received “Preferred Supplier” designation from
the Sichuan provincial government to supply construction related steel
products to aid in earthquake rebuilding efforts.

“The opening of this new Chengdu Longmen branch office allows us to more
easily provide our high-quality steel products to Sichuan province, where the
reconstruction effort has created great need,” said Mr. Henry Yu, General
Steel’s chairman and chief executive officer. “Our fully integrated Longmen
joint venture facility, based near Xi’an in Shaanxi province, is ideally
located to produce and cost-effectively transport steel products for rural,
China-based projects. For the past five years, we have been selling products
in Sichuan and have steadily been gaining market share as we develop long-term
relationships with distributors and increase our brand recognition. In
addition, as we look beyond the demand driven by the earthquake reconstruction,
having a branch office in Chengdu allows us to better leverage our unique
geographic position to capitalize on new regional rural development
opportunities brought about through the central government’s new economic
stimulus package and on-going ‘Go West’ development initiatives.”

Mr. Danli Zhang, General Steel’s Longmen joint venture general manager
further added, “We are very pleased to be able to capitalize upon the
increased capacity coming online from our two newly completed and more
efficient blast furnaces. We now have the ability to meet growing demand in
the reconstruction area, while at the same time enhancing our dominant market
position in Xi’an and southern Shaanxi province, the bridgehead area for
development into China’s western region.”

According to articles appearing in “China Daily”, approximately 37 million
tonnes of steel-related products are expected to be used in Sichuan province
for reconstruction efforts over a three year period. Key areas of
reconstruction include 4.5 million urban and rural homes, 51,000 kilometers of
highways, 5,500 kilometers of railways, 11,700 schools, 9,700 medical
institutions, 2,000 reservoirs and 810 power stations. Nearly all of this
steel must come from providers outside of the province. Prior to the
earthquake, combined annual steel production in Sichuan province and
neighboring Chongqing municipality amounted to 14.4 million tonnes, or less
than 3% of the national output in 2007. The Sichuan provincial government
estimates the total cost of reconstruction to be RMB1.67 trillion, or
approximately US$245.6 billion.

About General Steel Holdings, Inc.

General Steel Holdings, Inc., headquartered in Beijing, operates a diverse
portfolio of Chinese steel companies. With 4.8 million tonnes aggregate
production capacity, its companies serve various industries and produce a
variety of steel products including rebar, hot-rolled carbon and silicon sheet,
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 to
http://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.

    For investor and media inquiries please contact:

    In China:
     Ms. Jing Ou-Yang
     General Steel Holdings, Inc.
     Tel:   +86-10-5879-7346
     Email: jing@gshi-steel.com

     Mr. Justin Knapp
     Ogilvy Financial, Beijing
     Tel:   +86-10-8520-6556
     Email: justin.knapp@ogilvy.com

    In the United States:
     Ms. Jessica Barist Cohen
     Ogilvy Financial, New York
     Tel:   +1-646-460-9989
     Email: jessica.cohen@ogilvypr.com

SOURCE General Steel Holdings, Inc.

Source: newswire

comments powered by Disqus