General Steel Holdings, Inc. Provides Sales Guidance for the First Half of 2012; Provides Operational Update for the First Half of 2012
September 27, 2012 at 09:00 am EDT
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General Steel provided sales guidance for the first half of 2012. For the period, the company expected to report revenues of approximately $1.4 billion and production volume of approximately 2.4 million metric tons.
For the first half of 2012, the company completed the first stage of a series of benchmarking programs, which have resulted in efficiency improvements and cost reduction at Longmen joint venture. Initiated construction on a state-of-the-art, 900,000 metric ton seismic-grade rebar production line at Longmen JV. The production line incorporates cutting-edge technology that is expected to reduce rebar production costs substantially. The added capacity will also improve margins and enable the Company to better address demand for seismic-grade rebar in Western China. Currently Longmen JV is sourcing coke from a 5 million metric ton coke plant adjacent to Longmen JV, which was built by Shaanxi Coal and Chemical Industry Group Co. Ltd., one of the parties in the unified management agreement. General Steel expects the construction of a conveyor belt that will feed the coke directly to its Longmen JV to be completed in October and further reduce transportation costs.
General Steel Holdings, Inc., through its subsidiary, General Steel Investment Co., Ltd., operates steel companies serving various industries in the People's Republic of China (PRC). The Company manufactures and sells steel products, such as steel rebar, hot-rolled carbon and silicon sheets and spiral-weld pipes. The Company sells its products primarily to distributors and related parties. The Company has controlling interests in a trading subsidiary and an Internet-of-things subsidiary: Tianjin Shuangsi Trading Co., Ltd. (Tianjin Shuangsi) and Tongyong Shengyuan (Tianjin) Technology Development Co., Ltd. (Tongyong Shengyuan). Tianjin Shuangsi is a trading company that primarily trades iron ore, nickel-iron-manganese alloys and other steel-related products. Tongyong Shengyuan is a holding company of Tianjin Shuangsi.