American Construction Company (OTCBB: ACNS), owner of General Steel and its 70% ownership of subsidiary Tianjin Da Qiu Zuang Sheet Metal Co., Ltd. ("DQ"), a People's Republic of China limited liability corporation, was added to the portfolio of Asia Business & Investing (AB&I), a newsletter focused on Asian investing. Currently, AB&I recommends ACNS for only the most risk-tolerant investors interested in emerging growth stories.
Andrew Carpenter, editor of AB&I, said, "When considering Chinese investments, significant weight should be given to companies producing products that are beneficial to China. Those companies face far less interference at all levels of the Chinese bureaucracy. After looking at General Steel and its management we believe the company will reward investors over the long term."
AB&I's China team became interested in General Steel and arranged a briefing with company executives in Beijing after the company acquired 70% of DQ, a manufacturer of high-quality, hot-rolled carbon and silicon steel sheets. AB&I made its recommendation based on DQ's position as the largest producer of steel plates in China with a 40% market share of all steel plates used in the production of domestic agricultural vehicles. It operates six production lines producing 250,000 tons of 0.7-2.0mm hot-rolled carbon steel sheets annually.
Zuo Sheng Yu, Director and President of American Construction and its subsidiary, General Steel, said, "We are pleased to be recommended by Asia Business & Investing. Our operations are growing in China to meet increased demand for steel in the production of domestic agricultural vehicles."
About The Company
American Construction Company (OTCBB: ACNS) acquired General Steel and its 70% ownership in its subsidiary, Tianjin Da Qiu Zuang Sheet Metal Co., Ltd., ("DQ") a People's Republic of China limited liability corporation, which is a manufacturer of high quality hot-rolled steel sheets primarily for use in tractors, agricultural vehicles and other specialty vehicles. Since 1998, it has expanded its operations to six production lines producing 250,000 tons of 0.7-2.0mm hot-rolled carbon steel sheets per year, the largest producer in China, maintaining a 40% market share of all steel plates used in the production of agricultural vehicles in China. In 2003, its sales revenues were over $56 million and its total assets were worth more than $37 million. The Company recently announced an initial stage joint venture agreement with the China Inner Mongolia Baogang Steel Union ("Baotou Steel") which is anticipated will increase annual steel production from the current 250,000 tons to over 1,000,000 tons. For more information, visit http://www.generalsteelinc.com.
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks defined in this document and in statements filed from time to time with the Securities and Exchange Commission. All readers are encouraged to review the 8-K to be filed in connection with the acquisition discussed above, which outlines risk factors including debt obligations, deal terms and other relevant items. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the companies, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the companies disclaim any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.