Over the past
decade, Armco Metals has steadily evolved from a foreign enterprise into a
global powerhouse of imported metal ore and metal recycling. As one of China’s
largest metal recyclers, Armco Metals has established and enjoys strong
customer relationships with some of the fastest growing steel producing mills
and foundries. More than 100 small-sized and medium-sized metal manufacturing
enterprises are partnered with Armco Metals for their product needs.
Armco Metals has a
growing product portfolio, which includes ferrous and non-ferrous ore, iron
ore, chrome ore, nickel ore, magnesium, copper ore, manganese ore, steel billet,
and recycled scrap metals. For its product line, Armco Metals obtains raw
materials from its established global supply network in South Korea, India,
Australia, the United States, Brazil, and beyond.
In recent years,
countries across the globe have stepped up their efforts of promoting
environmental sustainability, and China is no stranger to that trend. The
Chinese government has pushed for domestic consumption of recycled scrap steel
to increase to 20% by 2015. In line with that standard, Armco Metals has opened
a state-of-the-art recycling facility in Lianyungang, China, to source,
process, and distribute up to 1 million tons of scrap steel per year. On the
whole, Armco Metals conducts business operations through its subsidiaries:
Armco (Lianyungang) Renewable Metals, Inc.; Armet (Lianyungang) Holdings, Inc.;
Armco Metals International, Ltd.; Henan Armco & Metawise Trading Co., Ltd.;
and Armco Metals (Shanghai) Holding, Ltd. Armco Renewable Metals serves as
Armco Metals’ principal business unit.
In the recent
months, Armco Metals had two company developments that could bode well for
future scaling opportunities. In late May, the company reported its reception
of an approval letter for a credit facility of $15 million, an increase of 18%
compared to its former credit limit. Having adopted a platform strategy where
it more fully involves its partners and customers in every stage of its
business process, from raw material purchases to processed product sales, Armco
Metals anticipates the new credit facility will help in three ways:
Enable it to
purchase scrap metal using 20 percent of shipped cargo value as a deposit
Give it room to grow
its global supply capabilities
Support up to $20
million in additional revenue capacity for greater growth into the Chinese raw
materials market
As for the other
development, Armco Metals in early June announced it had received approval from
China’s Environmental Management of Solid Waste for importation of restricted
materials. With the approval, Armco Metals will be able to import 20,000 metric
tons of higher-margin materials including steel-based scrap, copper-based
scrap, and aluminum-based scrap. Armco Metals anticipates its newly gained
approval will strengthen sales revenue as these non-ferrous scrap metals
typically have higher gross margins than scrap steel. With the $15 million
credit facility at hand, Armco Metals has greater financial resources available
for scaling its import operations for these materials.
For more information
visit: www.armcometals.com
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