Armco
Metals, a California-based metal ore distributor and scrap steel recycler
focused on China, continues to evolve. Once a foreign company specializing
exclusively in metal ore trading, the company is now an international entity
with integrated business lines covering the:
• Import, production, sale, and
distribution of processed and non-ferrous metal ores that cater to China’s
emerging steel manufacturing industry;
• Recycling of scrap steel throughout
China; and
• Mostly recently, the sale and supply
of wood chips to pulp mills in China.
Armco
has grown significantly since it was founded a decade ago. It has strengthened
its existing metal sales and distribution business, expanded its scrap steel
recycling capacity, and started offering sourcing and pricing services for
assorted metals.
The
company’s growth has been propelled by many factors—its management team’s
direction, a forward-looking operating strategy, widespread industry management
experience and deep wisdom and vision. Regardless, the company continues to
fine tune its business approach, developing and adopting more efficient methods
so that its customers, suppliers, and investors can reap the rewards.
Early
in September 2014, Armco branched out into its newest business: the sale and
supply of wood chips to paper manufacturers. The company signed an agreement to
purchase, in the next month, a trial shipment of Eucalyptus Nitens wood chips
weighing approximately 50,000 Green Metric Tons (GMT) from a Chilean supplier.
If the trial shipment is successful, Armco would then purchase a full year’s
total importation, or approximately 600,000 GMT, which has an estimated market
value of $63 million (according to the present market price in China). Should
the full purchase occur, Armco hopes to realize a 10% gross margin on the sale
of the entire product.
While
China is the world’s biggest paper and paperboard producer, there is a
noticeable lack of high quality wood fiber supply in the region. As a result,
new pulp mills have been looking to expand the importation of wood chips from
plantation-rich countries so as to meet their growing needs. Armco is hoping to
capitalize on this unmet need by adding the wood chip business to its
international trading line.
For
more information, visit www.ArmcoMetals.com
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