China Armco Metals Provides Update on Business

China Armco Metals Inc., a China-based metals recycler and distributor of imported metal ore, recently announced that it expects to produce and sell about 25,500 tons of recycled steel with an aggregate value of about $12 million in the fourth quarter of 2010. The company recently opened a scrap metal recycling facility in China.

In an update on its business, China Armco reports that China’s central government recently announced a plan to phase out its power rationing strategy for energy intensive industries and steel producers. The decision, China Armco says, should allow the company to move toward operating on a full-time basis.

"We are encouraged by recent actions by the central government to relax the power restrictions," remarked Kexuan Yao, China Armco Metals’ chairman and CEO. "Recycled steel produced through our state-of-the-art production facility, which uses less electricity and emits less air pollution than steel produced through traditional iron ore processing, is poised to benefit from the central government's new policies. We are working diligently to secure additional scrap metal in order to service the pent up demand for recycled steel in China."