Armco Metals
Holdings, a distributor of imported metal ores and a steel recycler in China,
announced today that its Armco (Lianyungang) Renewable Metals, Inc. subsidiary
has entered into a steel scrap distribution contract with TEWOO Metals
International Trade Co., Ltd. TEWOO Metals is the largest state-owned
enterprise in Tianjin that engages in domestic and international trading,
distribution, machining, delivery and E-commerce of metals and industrial
commodities.
With registered
capital of 700 million RMB, TEWOO Metals was established in May, 2006 through
the merger of three companies; Tianjin Metal Material Company, Tianjin Xiantong
Material & Trade Co. Ltd., and Tianjin Hopetone Co., Ltd. For fiscal year
2013, TEWOO Metals’ total sales revenue was approximately RMB 35 billion and
its total sales volume in steel was approximately 14.2 million metric tons.
With the agreement,
Renewable Metals will serve as a vendor to source, process, and distribute
steel scrap from TEWOO Metals. The first shipment from TEWOO Metals will
account for 2,000 metric tons. Armco Metals Holdings sees this agreement as one
which will help strengthen the business relationship between the two companies.
Additionally, the contract will increase processing capabilities and profit margin
through mutually beneficial purchase and payment terms.
Kexuan Yao, Chairman
and CEO of Armco Metals, said, “We are excited to work with TEWOO Metals
through this new distribution agreement. Since 2014, Armco Metals Holdings has
entered into supply agreements with industry leaders such as Mitsui & Co.,
Ltd., and Midland Resources (China) Company Limited under our ‘platform
strategy’ where much of the costs are absorbed by the purchaser with our
company receiving more stable and predictable processing fees. This agreement
with TEWOO Metals enables us to better manage materials purchasing with a
trusted partner on what we believe are very favorable payment terms to help us
further leverage our cash to increase volumes and profitability. We believe this
type of partnership, coupled with our platform strategy, will allow us to make
further inroads to achieving long-term business growth and success.”
For more information
about the company visit www.armcometals.com
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