China Armco Signs Distribution Deal with Usiminas

China Armco Metals Inc., a metal recycling company and distributor of imported metal ore, reports that it has delivered its first shipment of 150,000 metric tons of iron ore, valued at $19.8 million, from Mineracao Usiminas S.A, one of Latin America's largest producers of steel based in Brazil.

According to a China Armco release, Usiminas has a total capacity of 9.5 million metric tons of steel. China Armco further notes that the order marks the start of a long term relationship between the two companies. With the agreement, China Armco says it has become the first company to assist Usiminas in exporting its iron ore to China.

"We are delighted to commence our partnership with international giant steel mills such as Usiminas," says Kexuan Yao, chairman and CEO of China Armco. "With the intention of the Usiminas to deliver 3 million metric tons of iron ore in 2011, as well as potentially 20 million metric tons in 2012 to China, we appreciate the confidence and support by the management of Usiminas by executing this agreement. We are pleased with their acknowledgment of our strong capabilities to assist them in reaching their objectives. At the same time, this strategic relationship offers us a strong opportunity to secure our metal distribution position in China while maximizing profitability."