General Steel Holdings, a non-state-owned steel producer in China, signed a memorandum of understanding (MOU) with Tewoo Group, a Fortune Global 500 company, to co-develop bulk commodity e-commerce business.
The MOU establishes a long-term strategic partnership to mutually pursue business opportunities in bulk commodity e-commerce, asset leasing, and financing. The partnership is consistent with the General Steel’s intention to invest into high-growth, high-margin industries in order to expand its business scope.
Under the terms of the MOU, Tewoo Group will make an equity investment into General Steel. Both parties would mutually determine the specific terms later. The partnership also plans to co-construct a logistic base in Maoming City in China’s Guangdong Province where General Steel has strategic advantages in land reserve, as well as 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.