Exhibit 99.1
Investor and Media Relations Contacts:
Company Contact:
Leslie Wolf-Creutzfeldt and Adam Friedman
John Chen, CFO
Adam Friedman Associates
Adam Friedman Associates General Steel
212-981-2529 x11
212-981-2529 x18
86-10-68000346
leslie@adam-friedman.com
adam@adam-friedman.com
john@gshi-steel.com
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GENERAL STEEL AND BAOTOU STEEL
SIGN JOINT VENTURE AGREEMENT
Joint Venture will produce 600,000
metric tons of specialty steel products for
industrial usage a year
Tianjin, China, October 3, 2005 - General
Steel Holdings, Inc. (OTCBB: GSHO), a
leading manufacturer of high quality
hot-rolled steel
sheets primarily for use
in tractors, agricultural vehicles and
other specialty vehicles, today announced
that the board of directors of General
Steel Holdings and
Baotou Iron and Steel
(Group) Company, Limited ("Baotou 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 the 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
