Beijing, China-based steelmaker General Steel Holdings Inc. announced on April 6 that its wholly owned subsidiary, General Steel ( China) Co. Ltd., has entered into a lease agreement with Tianjin Daqiuzhuang Steel Plates Co. Ltd., a related party of General Steel.
The lease agreement provides approximately 72,100 m2 of workshops, land, equipment and other facilities to Tianjin Daqiuzhuang Steel Plates Co. Ltd. and allows General Steel to reduce overhead costs while providing a recurring monthly revenue stream from rental payments. The term of the lease agreement is from January 1, 2010 to December 31, 2011 and the monthly base rental rate due to General Steel (China) Co. Ltd is approximately US$246,096 (RMB 1.68 million).