SOURCE: Armco Metals Holdings, Inc.
SAN MATEO, CA--(Marketwired - May 16, 2014) - Armco Metals Holdings, Inc. ("Armco Metals Holdings") (NYSE MKT: AMCO), a distributor of imported metal ores and a steel recycler in China, today announced that its Armco (Lianyungang) Renewable Metals, Inc. subsidiary ("Renewable Metals") has entered into a steel scrap distribution agreement with TEWOO Metals International Trade Co., Ltd. ("TEWOO Metals"), the largest state-owned enterprise in Tianjin that engages in domestic and international trading, distribution, machining, delivery and E-commerce of metals and industrial commodities.
TEWOO Metals has a registered capital of 700 million RMB and was established on May, 2006 through the merger and integration of three companies; Tianjin Metal Material Company, Tianjin Xiantong Material & Trade Co.. Ltd., and Tianjin Hopetone Co., Ltd. In its fiscal 2013 year, TEWOO Metals' total sales revenue was approximately RMB 35 billion and its total sales volume in steel was approximately 14.2 million metric tons.
Under the terms of the agreement, Renewable Metals will serve as a vendor to source, process and distribute steel scrap from TEWOO Metals. The initial shipment from TEWOO Metals will be for 2,000 metric tons. Armco Metals Holdings believes this agreement will help strengthen the business partnership between the two companies, while increasing its processing capabilities and profit margin through favorable purchase and payment terms.
Commenting on the agreement, Kexuan Yao, Chairman and CEO of Armco Metals, stated, "We are excited to work with TEWOO Metals through this new distribution agreement. Since 2014, Armco Metals Holdings has entered into supply agreements with industry leaders such as Mitsui & Co., Ltd., and Midland Resources (China) Company Limited under our 'platform strategy' where much of the costs are absorbed by the purchaser with our company receiving more stable and predictable processing fees. This agreement with TEWOO Metals enables us to better manage materials purchasing with a trusted partner on what we believe are very favorable payment terms to help us further leverage our cash to increase volumes and profitability. We believe this type of partnership, coupled with our platform strategy, will allow us to make further inroads to achieving long-term business growth and success."
SAFE HARBOR STATEMENT
In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Armco Metals Holdings, 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, 2013, and our subsequent filing with the Securities and Exchange Commission.