Scottsdale 10/1/2014 8:00:00 PM
QualityStocks News - Armco Metals Holdings (AMCO) – From Niche Entity to Diversified Business
QualityStocks would like to highlight Armco Metals Holdings (NYSE: AMCO), engaged in the sale and distribution of metal ore and non-ferrous metals throughout China, and the recycling business in China. 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. Armco Metals' 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.
In the company’s news,
Armco Metals continues to evolve from a niche entity to a diversified business. 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.
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Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
