Tuesday, July 8, 2014

Armco Metals Holdings, Inc. (AMCO) Subsidiary Noted by China’s Ministry of Industry and Information Technology for Approved Scrap Steel Processing Operations

Today before the opening bell, Armco Metals announced its subsidiary Armco (Lianyungang) Renewable Metals, Inc. was on a list of companies that have received approval for operation in the scrap steel processing industry. The list of companies was published by China’s Ministry of Industry and Information Technology on June 16, 2014. It contains only 131 companies in total and signifies the final step in Armco Metals’ attainment of approval for entering into China’s scrap steel processing industry by the ministry.

Since September 2012, the Ministry of Industry and Information Technology came up with a set of stringent policies binding across many company facets as necessary standards for a company to enter into China’s scrap steel processing industry. Known as the “Standards for Entering the Scrap Steel Processing Industry”, these standards include policies for corporate layout, construction requirements, scale, technology and equipment, product quality, energy consumption and resource utilization, environmental protection, training of personnel, production safety, occupational health, social responsibility, supervision, and management. In 2013, Armco (Lianyungang) Renewable Metals attained Model Scrap Processing and Distribution Center” status from the Chinese Scrap Application Association, and earlier in 2014, it attained ministry authorization for market entry.

Armco Metals sees this as a company milestone because of the small number of companies that have been noted to be capable of operating within the policy guidelines. The Chinese government has been pushing for strengthened policies regarding efficiency and environmental responsibility, and Armco Metals is strategically positioned for taking advantage of those policy shifts. The policy shift toward environmental responsibility is forecasted to help promote scrap metal as a market alternative to iron ore for production purposes. At present, scrap steel usage in the Chinese steel industry is only about 8%, or approximately one-seventh of the scrap steel usage in the U.S. and Europe.

Kexuan Yao, Chairman and CEO of Armco Metals Holdings, stated, “We continue to see progress at our Renewable Metals subsidiary as we work to position our Company for the future. Our efforts have resulted in this important inclusion in the list of approved operators that we believe will pay big dividends down the road as the Government looks to increase industrial efficiency while reducing pollution. China’s scrap industry has been slow to develop due to many producers opting to use less costly and more pollutive production methods. As the government implements these new initiatives, we see steel producers moving to models that more closely resemble that of the U.S. and Europe which should lead to significant need for scrap steel produced by the small circle of companies who are approved by the government to operate in this industry.”

For more information, visit: www.armcometals.com

About QualityStocks

QualityStocks is committed to connecting subscribers with companies that have huge potential to succeed in the short and long-term future. We offer several ways for investors to find, evaluate, and learn more about investing in these companies.


Sign up for “The QualityStocks Daily Newsletter” at www.QualityStocks.net

The Quality Stocks Daily Blog http://blog.qualitystocks.net

The Quality Stocks Daily Videos http://videocharts.qualitystocks.net

 The Quality Stocks “Ones to Watch” http://gotstocks.qualitystocks.net

Please see disclaimer on the QualityStocks website: http://disclaimer.qualitystocks.net

No comments: