Contract will supply company with up to 37,000 tons per month of scrap metal through the rest of the year.
China Armco Metals Inc., a distributor of imported metal ore and metal recycler with a new scrap metal recycling facility in China, announces that its wholly owned subsidiary, Armet Renewable Resourced Co. Ltd., has entered into contracts with several domestic suppliers to secure an ongoing supply of scrap metal of up to 37,000 tons per month for the remainder of this year.
The scrap metal will be processed at China Armco's new facility in Lianyungang, China, which started operations the second quarter of 2010.
Kexuan Yao, CEO and chairman of China Armco Metals Inc., says, "We are very pleased to have secured a sizable and consistent scrap metal supply. This is an important step forward as we ramp up production at our newly constructed metal recycling facility in Lianyungang. The infusion of capital from our recent equity raise, coupled with the exercise of options and warrants, has provided us with the added financial flexibility to secure favorable long term supply contracts to accelerate our growth plans for 2010 and beyond. We now have the ability to look to take advantage of numerous opportunities before us and intend to work diligently to aggressively expand our operations for the benefit of our shareholders."