China Armco Metals, Inc., an distributor of imported metal orea and metal recycler with a new state of the art scrap metal recycling facility in China, today announced that its Armet Renewable Resource subsidiary, has signed a $100 million contract to supply a major Chinese steel producer with up to 230,000 tons of scrap steel in 2010.
The company will deliver up to 23,000 tons of scrap steel each month for 10 months commencing in March 2010.
China Armco’s management anticipates that the supply contract will allow it sell all the initial production from its new recycling facility during its first months of operation. The company also believes that the facility will reach its full capacity run rate during Q4 2010. At full capacity the facility is capable of processing approximately 1 million metric tons of scrap steel per year or over $400 million annually at current prices.
Mr. Kexuan Yao, CEO and Chairman of China Armco Metals, Inc. said, "We are very excited to have secured such a sizable contract with this leading steel producer. This essentially has pre-sold the first several months of production from our newly opened facility as we ramp up capacity over the coming quarters. We are confident that this contract coupled with our other operations will enable our company to experience significant revenue growth and enhanced earnings power for the foreseeable future."
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