General Steel, Baotou Steel sign joint venture agreement

September 30, 2005

General Steel Holdings Inc., Tianjin, China, a manufacturer of 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 Ltd. ("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 Ltd.

The joint venture will establish a hot rolling facility in Kundulun District, Baoutou City, Inner Mongolia to produce alloy rods, tubular billets, round bars, channels, and I-beams. The products will be sold in the Chinese market and abroad.