China Armco Metals, Inc., a distributor of metal ore and non-ferrous metals throughout the PRC, today told the investment community it anticipates producing and selling approximately 25,500 tons of recycled steel with an aggregate value of approximately $12 million in the fourth quarter of 2010.
The company received orders for the recycled steel from five different customers. With the central government recently announcing that the power rationing for energy intensive industries and steel producers will be phased out, China Armco is optimistic about being able to operate on a full time basis in the near term.
“We are encouraged by recent actions by the central government to relax the power restrictions,” stated Mr. Kexuan Yao, the Company’s Chairman and Chief Executive Officer. “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.”