General Steel Holdings, Inc. ("General Steel" or the "Company") (NYSE: GSI), one of China's leading, non-state-owned producers of steel products and aggregators of domestic steel companies, today announced it won two contracts to supply an aggregate 240,000 metric tons of steel to support the Xi Luo Du and the Xiang Jia Ba hydropower projects both located in western China.
Pursuant to the Xi Luo Du hydropower project contract, the Company will supply 135,000 metric tons of rebar during years 2010 through 2013, with 60,000 metric tons estimated for shipment in 2010. Pursuant to the Xiang Jia Ba hydropower project contract, the Company will supply 105,000 metric tons of rebar during years 2010 through 2013, with 40,000 metric tons estimated for shipment this year. The Company's Longmen Joint Venture won both contracts as a "lead-supplier" and will supply 50% of construction steel needed for both projects.
"Our Longmen Joint Venture facility continues to be extremely well-positioned, both geographically and strategically, to benefit from ongoing government investment in rural China's infrastructure development," said General Steel's Chairman and Chief Executive Officer Henry Yu. "With a strong reputation for quality production, these contract wins will enhance our Longmen facility's market advantage in the western inland region, particularly in Sichuan and Yunnan provinces, and we will play a more important role as a construction steel producer in this rapidly developing area."
Located in Sichuan province, the Xi Luo Du hydropower project is one of four large hydropower projects currently under construction on the Jin Sha river. It is expected to generate electrical energy of 57.1 billion kilowatts and will be the third largest hydropower plant in the world and second largest in China. The total investment of this project is approximately RMB79.2 billion, or approximately US$11.6 billion.
The Xiang Jia Ba hydropower project is located at the junction of Sichuan and Yunnan provinces. It is expected to generate electrical energy of 30.7 billion kilowatts. The total investment for this project is approximately RMB28.9 billion, or approximately US$4.25 billion.