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General Steel and Tewoo Group Sign MoU to Co-Develop Bulk Commodity e-Commerce
10/17/2014 - General Steel Holdings Inc., a non-state-owned steel producer in China, has signed a memorandum of understanding (MOU) with Tewoo Group Co. Ltd., 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 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:
"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.
Founded in 1993, Tewoo Group, also known as Tianjin Materials and Equipment Group Corp., is a diversified state-owned enterprise that operates businesses in commodity trade, logistics, real estate development, financial services, and vocational education. Tewoo Group is also Ranked 51st on the China List of Top 100 Enterprises and 185th on the Fortune Global 500 List. In 2013, Tewoo Group's total revenue reached RMB 337.9 billion.
General Steel, headquartered in Beijing, China, produces a variety of steel products including rebar, high-speed wire and spiral-weld pipe. The company has operations in China's Shaanxiand Guangdong provinces, Inner Mongolia Autonomous Region, and Tianjin municipality with 7 million metric tons of crude steel production capacity under management.
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.
"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.
Founded in 1993, Tewoo Group, also known as Tianjin Materials and Equipment Group Corp., is a diversified state-owned enterprise that operates businesses in commodity trade, logistics, real estate development, financial services, and vocational education. Tewoo Group is also Ranked 51st on the China List of Top 100 Enterprises and 185th on the Fortune Global 500 List. In 2013, Tewoo Group's total revenue reached RMB 337.9 billion.
General Steel, headquartered in Beijing, China, produces a variety of steel products including rebar, high-speed wire and spiral-weld pipe. The company has operations in China's Shaanxiand Guangdong provinces, Inner Mongolia Autonomous Region, and Tianjin municipality with 7 million metric tons of crude steel production capacity under management.
