China Armco Metals Inc. has announced that it has received confirmation that local government-imposed power restrictions for energy intensive industries and steel producers will be lifted by the end of January, 2011. With the announcement, China Armco says that its scrap metal recycling operation in China will return to full operations.
The company says that China’s central government imposed energy restrictions in at least 18 provinces, starting this past September, to meet energy consumption and emissions targets set by the country’s 11th Five Year Plan, which significantly impacted China Armco’s operations.
"We are pleased to receive news that the power rationing will be phased out," says Kexuan Yao, China Armco’s chairman and CEO, in a release. "These restrictions temporarily affected our operations in the third and fourth quarters of 2010, and we are encouraged to be operating on a full time basis. We will now be able to rapidly accelerate our growth in this area of great potential."
The company says that its recycling facility can process up to one million tons of scrap metal per year. The company recently started operation of its auto shredder at its site in China.
China Armco Facility Returns to Full-time Schedule
Decision follows the Chinese government’s lifting of power restrictions.