China Armco Metals Inc., a metal recycler and steel distributor, has announced that Armco Renewable Metals, Inc., its wholly owned subsidiary, has received new qualifications for its scrap recycling operation.
The updated qualification certificate allows Armco to purchase scrap metal imported into the country without the requirement to use agents. According to China Armco, the qualifications are expected to lower the company's cost by removing the agent fee in its operation and improve operating profit margin.
China Armco (www.armcometals.com) adds that the removal of the previous qualification limitation also enhances the company's capability on raw materials sourcing and purchasing and improves the company's operating capacity. Moreover, obtaining this certificate is the premise for applying the certificate to import scrap steel directly by the company.
“We have worked on the application of this certificate for three years and finally received the good news of approval,” says Kexuan Yao, chairman and CEO of China Armco. “This certificate enables us to process imported materials on a large scale and have the potential to improve our gross margin. It is also expected to improve our product mix by offering more high-margin products. We are confident that our recycling operation will be profitable and more effective.”