Profile: General Steel Holdings, Inc. (GSI)

General Steel Holdings, Inc. (General Steel), incorporated on August 5, 2002, through its wholly-owned subsidiary, General Steel Investment operates a portfolio of Chinese steel companies serving various industries. The Company has four production subsidiaries: Daqiuzhuang Metal, Baotou Steel-General Steel Special Steel Pipe Joint Venture Co., Ltd., (Baotou Steel Pipe Joint Venture), Shaanxi Longmen Iron and Steel Co., Ltd. (Longmen Joint Venture) and Maoming Hengda Steel Group Co., Ltd. The Company’s main products include rebar, hot-rolled carbon and silicon sheets and spiral-weld pipes.

On January 14, 2008, the Company, through Longmen Joint Venture, completed its acquisition of a controlling interest in Hancheng Tongxing Metallurgy Co., Ltd. (Tongxing). In June 2008, the Company acquired 99% of Maoming Hengda Steel Group, Ltd. (Hengda), a steel products processor located in Maoming city, Guangdong province in China's southern coastal region. On August 11, 2008, the Company through its subsidiary, Longmen Joint Venture, completed its acquisition of controlling interest in Beijing Hua Tian Yu Long International Steel Trade Co., Ltd.

Daqiuzhuang Metal’s core business is the manufacturing of high quality hot-rolled carbon and silicon steel sheets which are mainly used in the production of tractors, agricultural vehicles, shipping containers and in other specialty markets. Daqiuzhuang Metal uses a rolling mill production sequence, such as heating, rolling, cutting, annealing and flattening to process coil into steel sheets. The sheet sizes are approximately 2,000 millimeter (length) x 1,000 millimeter (width) x 0.75 to 2.0 millimeter (thickness). Daqiuzhuang Metal has ten steel sheet production lines processing approximately 400,000 tons of 0.75-2 millimeter hot-rolled carbon and silicon steel sheets per year.

Baotou Steel Pipe Joint Venture is located at Kundulun District, Baotou city, Inner Mongolia province, China. It produces and sells spiral-weld steel pipes and primarily serves customers in the oil, gas and petrochemical markets. Pipes produced have a diameter ranging from 219-1240 millimeter, a wall thickness ranging from 6-13 millimeter and a length ranging from 6-12 meter. The facility has two production lines with annual production capacity of 100,000 metric tons.

Longmen Joint Venture is located in Hancheng city, Shaanxi province. It uses iron ore and coke, as raw materials for steel production. Longmen Joint Venture has annual crude steel production capability of 4 million tons. It produces pig iron, crude steel, reinforced bars (rebar) and high-speed wire which are sold mostly in the domestic market. Approximately 90% of finished production is devoted to rebar. Rebar produced has a diameter range from 12-32 mm and a length range of 6-12 meter. Longmen Joint Venture is also engaged in other business activities, which are related to steel manufacturing, such as the production of coke and iron ore pellets from taconite. The Company’s business activities also include transportation services, real estate services and hotel operations.

Maoming is located in Maoming city, Guangzhou province, China. It has two production lines capable of producing 1.8 million metric tons per year of high-speed wire and rebar, products used in construction. These products have a diameter range of 5-16 millimeter. The Company sells its products to distributors. The products produced at Daqiuzhuang Metal including hot-rolled carbon sheets are used in the construction of light agricultural vehicles. The products produced at Baotou Steel Pipe Joint Venture are used in the energy sector to transport natural gas, oil and stream. The products produced at Maoming are used in the construction industry and infrastructure.

The Company competes with Tianjin No. 1 Rolling Steel Plant, Tianjin Yinze Metal Sheet Plant, Tangshan Fengrun Metal Sheet Plant, Shanxi Haixin Iron and Steel Co., Ltd., Gansu Jiuquan Iron and Steel Co., Ltd., Tianjin Bo Ai Steel Pipe Co., Hebei Cangzhou Zhong Yuan Steel Pipe Co., Shanxi Taiyuan Guo Lian Steel Pipe Co., Guangdong Shao Guan Iron and Steel Group, Zhuhai Yue Yu Feng Iron and Steel Co., Ltd.