The Board of Directors of General Steel Holding, a non-state-owned steel producer in China, has approved a strategic restructuring plan designed to accelerate the company’s business transformation.
The transformation includes implementing additional cost-cutting programs at Longmen Joint Venture, selling the company’s stake in General Steel Special Steel Pipe Joint Venture Company (Pipe JV), and reconfiguring the company’s steel manufacturing facilities and assets to facilitate expansion into logistics and Internet-of-Things businesses.
During the fourth quarter of 2014, the company sold its stake in the Pipe JV. As the Pipe JV had previously incurred significant operating losses, the sale will effectively lower the company’s future liability and share of operating losses related to Pipe JV. To better utilise its idle land resources in Maoming, Guangdong Province, the Company is in the process of building a new, modern logistics centre to accelerate the development of its logistics and Internet-of-Things businesses. The construction is expected to start in the first quarter of 2015.
