SAN MATEO, Calif., May 22, 2013 /PRNewswire/ -- China Armco
Metals, Inc. (NYSE MKT: CNAM) ("China Armco" or the "Company"), a
distributor of imported metal ore and a metal recycler with a
state-of-the-art scrap metal recycling facility in China, today announced that Armco
(Lianyungang) Renewable Metals, Inc., the Company's wholly owned
subsidiary, has signed a long-term sales contract with
CNBM International Corporation, a subsidiary of a Hongkong
Stock Exchange listed (HKEx, stock code 3323) and state-owned
Chinese building material company, China National Building
Materials Group Corporation. According to the contract, Armco
(Lianyungang) will provide CNBM International monthly supplies
of scrap metals and waste plastics for the next three years
starting May 15, 2013.
Under the contract, the Company will supply approximately 15,000
MT (subject to 20% up-or-down adjustment) of scrap metals of
various types and waste plastics to CNBM International every
month from May 15, 2013 to
May 14, 2016. The contract calls for
a separate single sale agreement to be formed prior to each monthly
supply, and CNBM shall make full payment for each supply at the
time of such single sale agreement. With the prepayment arrangement
under a pre-selling model, China Armco could increase its recycling
production and sales significantly without additional working
capital. This contract will increase the Company's recycled scrap
metals sales, and is also expected to improve the Company's profit
margin as a result of a lowered idle capacity cost accompanying the
increased production.
"We are pleased to establish the business cooperation with CNBM
International Corporation. This 3-years contract is a very
important part of our efforts to build a pre-selling model for
recycled scrap metals, which is expected to provide us with a
relatively consistent and stable sales performance. In addition,
with a higher output at our recycling facility, we expect to see an
improved profit margin as a result of the lowered idle capacity
cost. We are hoping to explore more business cooperation
opportunities with CNBM International in the future. We believe
that, with our brand building initiates, we will be able to
continue to expand our client base," commented Mr. Kexuan Yao,
Chairman and CEO of China Armco.
ABOUT CHINA ARMCO METALS,
INC.
China Armco Metals, Inc. is engaged in the sale and distribution of
metal ore and non-ferrous metals throughout China and is in the recycling business in
China. China Armco's customers
include some of the fastest growing steel producing mills and
foundries throughout China. Raw
materials are acquired from a global group of suppliers located in
various countries, including, but not limited to, Brazil, India, Indonesia, Ukraine and the
United States. China Armco's product lines include ferrous
and non-ferrous ore, iron ore, chrome ore, nickel ore, magnesium,
copper ore, manganese ore, steel billet and recycled scrap metals.
For more information about China Armco, please visit
http://www.armcometals.com.
SAFE HARBOR STATEMENT
In connection with the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, China Armco Metals, Inc.,
is hereby providing cautionary statements identifying important
factors that could cause our actual results to differ materially
from those projected in forward-looking statements (as defined in
such act). Any statements that are not historical facts and that
express, or involve discussions as to, expectations, beliefs,
plans, objectives, assumptions or future events or performance
(often, but not always, indicated through the use of words or
phrases such as "will likely result," "are expected to," "will
continue," "is anticipated," "estimated," "intends," "plans,"
"believes" and "projects") are forward-looking and involve
estimates and uncertainties which could cause actual results to
differ materially from those expressed in the forward-looking
statements. These statements include, but are not limited to, our
expectations regarding our revenues and production related to our
scrap metal recycling operations, pricing and demand for our
product lines and the extent of government imposed energy and
monetary policy restrictions and resulting blackouts and associated
impact on our trading and recycling operations.
We caution that investors should not place undue reliance on any
forward-looking statements herein. Further, any forward-looking
statement speaks only as of the date on which such statement is
made, and we undertake no obligation to update any forward-looking
statement to reflect events or circumstances after the date on
which such statement is made or to reflect the occurrence of
anticipated or unanticipated events or circumstances. This press
release is qualified in its entirety by the following, including,
but not limited to, any expectations with respect to the Company's
revenues and operations, institution of governmental regulations
relating to our businesses and the international economic climate,
and the cautionary statements and risk factor disclosure contained
in our Securities and Exchange Commission filings, including our
Annual Report on Form 10-K for the year ended December 31, 2012, and our Quarterly Filings on
Form 10-Q for the periods ended March 31,
2013.
CONTACT INFORMATION:
China Armco Metals, Inc.
US Investor Relations Contact
Christina Xiong
Office: 650.212.7620
Email: christina@armcometals.com
ir@armcometals.com
Website: www.armcometals.com
China Contact:
Ripple Zhang
Office: 86-21-62375286
Email: ripple.zhang@armcometals.com
Website: www.armcometals.com
SOURCE China Armco Metals, Inc.