OREANDA-NEWS. October 28, 2014. General Steel Holdings, Inc. ("General Steel" or the "Company") (NYSE: GSI), a leading non-state-owned steel producer in China, today announced that it has signed a memorandum of understanding (the "MOU") with Tewoo Group Co., Ltd. ("Tewoo Group"), a Fortune Global 500 company, to co-develop bulk commodity e-commerce business.

The MOU establishes a long-term strategic partnership (the "Partnership") to mutually pursue business opportunities in bulk commodity e-commerce, asset leasing, and financing. The Partnership is consistent with the Company's previously stated intention to invest into high-growth, high-margin industries in order to expand its business scope.

Under the terms of the MOU:

Tewoo Group intends to make an equity investment into General Steel, with specific terms to be subsequently and mutually determined by both parties;

The Partnership will co-develop bulk commodity e-commerce business;

The Partnership will co-construct a logistic base in Maoming City in China's Guangdong Province, where General Steel has strategic advantages in land reserve; and

The Partnership will co-develop financial services, including capital lease, trade financing, and credit facilities to capture the strong demand for such services from the e-commerce platform's customers.

Tewoo Group ranks 185th on the Fortune Global 500 List in 2014, is the largest state-owned enterprise in Tianjin, and is one of the 20 largest trading enterprises in China supported by the Ministry of Commerce. Tewoo Group's e-commerce platform, Tewoo Bulk Commodity, currently offers a wide selection of bulk commodities, including iron and steel, nonferrous metal, petroleum, coal and coke, minerals, chemicals, and building materials.

"We are very delighted to announce this strategic partnership with Tewoo Group, one of China's leading state-owned enterprises, marking our entry into the fast-growing and profitable bulk commodity e-commerce platform," said Henry Yu, Chairman and Chief Executive Officer of General Steel, "Tewoo Group is a proven leader with expansive customer reach, and we believe our strategic collaboration will not only mutually benefit both parties, but will also effectively help General Steel expand into targeted high-growth and high-margins industries with mitigated risks." 

"Moreover, we are excited about the attractive market opportunities for financial services within the e-commerce platform, as well as General Steel's prospects of cross-selling its steel products into the platform's large customer base. We anticipate this partnership will help General Steel capitalize on significant growth opportunities and provide positive returns for our shareholders," Mr. Yu concluded.