China Armco Metals signed a long-term sales contract with a state-owned
Chinese building material company
SAN MATEO, Calif., May 22, 2013
SAN MATEO, Calif., May 22, 2013 /PRNewswire/ --China Armco Metals, Inc. (NYSE
MKT: CNAM) ("China Armco" or the "Company"), a distributor of imported
metalore and a metal recycler with a state-of-the-art scrap metal recycling
facility in China, today announced that Armco (Lianyungang) Renewable Metals,
Inc., the Company's wholly owned subsidiary, has signed a long-term sales
contract with CNBMInternational Corporation, a subsidiary of a Hongkong Stock
Exchange listed (HKEx, stock code 3323) and state-owned Chinese building
material company, China National Building Materials Group Corporation.
According to the contract, Armco (Lianyungang) will provide CNBMInternational
monthly supplies of scrap metals and waste plastics for the next three years
starting May 15, 2013.
Under the contract, the Company will supply approximately 15,000 MT (subject
to 20% up-or-down adjustment) of scrap metals of various types and waste
plastics to CNBMInternational every month from May 15, 2013 to May 14, 2016.
The contract calls for a separate single sale agreement to be formed prior to
each monthly supply, and CNBM shall make full payment for each supply at the
time of such single sale agreement. With the prepayment arrangement under a
pre-selling model, China Armco could increase its recycling production and
sales significantly without additional working capital. This contract will
increase the Company's recycled scrap metals sales, and is also expected to
improve the Company's profit margin as a result of a lowered idle capacity
cost accompanying the increased production.
"We are pleased to establish the business cooperation with CNBM International
Corporation. This 3-years contract is a very important part of our efforts to
build a pre-selling model for recycled scrap metals, which is expected to
provide us with a relatively consistent and stable sales performance. In
addition, with a higher output at our recycling facility, we expect to see an
improved profit margin as a result of the lowered idle capacity cost. We are
hoping to explore more business cooperation opportunities with CNBM
International in the future. We believe that, with our brand building
initiates, we will be able to continue to expand our client base,"commented
Mr. Kexuan Yao, Chairman and CEO of China Armco.
ABOUT CHINA ARMCO METALS, INC.
China Armco Metals, Inc. is engaged in the sale and distribution of metal ore
and non-ferrous metals throughout China and is in the recycling business in
China. China Armco's customers include some of the fastest growing steel
producing mills and foundries throughout China. Raw materials are acquired
from a global group of suppliers located in various countries, including, but
not limited to, Brazil, India, Indonesia, Ukraine and the United States. China
Armco's product lines include ferrous and non-ferrous ore, iron ore, chrome
ore, nickel ore, magnesium, copper ore, manganese ore, steel billet and
recycled scrap metals. For more information about China Armco, please visit
SAFE HARBOR STATEMENT
In connection with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, China Armco Metals, Inc., is hereby providing
cautionary statements identifying important factors that could cause our
actual results to differ materially from those projected in forward-looking
statements (as defined in such act). Any statements that are not historical
facts and that express, or involve discussions as to, expectations, beliefs,
plans, objectives, assumptions or future events or performance (often, but not
always, indicated through the use of words or phrases such as "will likely
result," "are expected to," "will continue," "is anticipated," "estimated,"
"intends," "plans," "believes" and "projects") are forward-looking and involve
estimates and uncertainties which could cause actual results to differ
materially from those expressed in the forward-looking statements. These
statements include, but are not limited to, our expectations regarding our
revenues and production related to our scrap metal recycling operations,
pricing and demand for our product lines and the extent of government imposed
energy and monetary policy restrictions and resulting blackouts and associated
impact on our trading and recycling operations.
We caution that investors should not place undue reliance on any
forward-looking statements herein. Further, any forward-looking statement
speaks only as of the date on which such statement is made, and we undertake
no obligation to update any forward-looking statement to reflect events or
circumstances after the date on which such statement is made or to reflect the
occurrence of anticipated or unanticipated events or circumstances. This press
release is qualified in its entirety by the following, including, but not
limited to, any expectations with respect to the Company's revenues and
operations, institution of governmental regulations relating to our businesses
and the international economic climate, and the cautionary statements and risk
factor disclosure contained in our Securities and Exchange Commission filings,
including our Annual Report on Form 10-K for the year ended December 31, 2012,
and our Quarterly Filings on Form 10-Q for the periods ended March 31, 2013.
China Armco Metals, Inc.
US Investor Relations Contact
SOURCE China Armco Metals, Inc.
Press spacebar to pause and continue. Press esc to stop.