Longhai Steel Inc. (OTCBB: LGHS) Announces Record Fourth Quarter Production and Sales

Orlando, FL 1/27/12 (StreetBeat) -- Longhai Steel Inc. (OTCBB: LGHS), a producer of high quality steel wire products in the People's Republic of China, today announced record Fourth Quarter 2011 output and sales volume of steel wire.

With additional capacity beginning to come on line from its newly-opened second production facility, Fourth Quarter 2011 steel wire output was 293,862 Metric Tons, up 23% from 238,912 Metric Tons in the same period of 2010. Fourth Quarter 2011 steel wire sales volume was also a record at 335,229 Metric Tons, up 30% from 257,871 Metric Tons in the same period of 2010.

Once fully ramped, Longhai's new production line will increase overall capacity by approximately 60%. The new line also has the capability to produce alloy steel, cold forging steel and welding rods. This new, higher margin product will allow Longhai to address demand in markets in addition to construction and infrastructure.

Mr. Steven Ross, Executive Vice President of Longhai, said, "This increase in capacity is part of our long term corporate growth strategy. The higher quality steel wire from this facility will diversify our product base, and give us the ability to maintain our growth trajectory in 2012."

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