SOURCE: Armco Metals Holdings, Inc.
SAN MATEO, CA--(Marketwired - Mar 5, 2014) - Armco Metals Holdings, Inc. ("Armco Metals Holdings") (NYSE MKT: AMCO), a U.S. based company that engages in the import, sale, and distribution of metal ore and non-ferrous metals in the People's Republic of China, recycles scrap metals used by steel mills in the production of recycled steel and provides sourcing and pricing services for various metals to its network of customers, today announced that its Armco (Lianyungang) Renewable Metals, Inc. subsidiary ("Renewable Metals") has entered into a steel scrap supply agreement with Mitsui & Co. (Shanghai) Ltd. ("Mitsui Shanghai"), a wholly owned subsidiary of Mitsui & Co., Ltd., ("Mitsui & Co.") whose business covers energy, machinery, chemicals, food, textile, logistics, finance, and more on a global scale.
Under the terms of the agreement, Renewable Metals will serve as Mitsui Shanghai's vendor for sourcing, processing and supplying scrap metals with various specifications and standards. Mistui Shanghai has also agreed to advance payment for the joint purchase of raw materials and complete final purchase of the steel scrap upon completion of processing services. This newly applied purchasing business model for Renewable Metals is designed to better enforce its supply agreements with customers and lower business risk.
As a subsidiary of one of the largest general trading companies in Japan, Mitsui Shanghai has estimated purchase plans for approximately 15,000 to 20,000 metric tons of steel scrap on a monthly basis. In addition to the potential for significant recurring revenue, the advance purchase terms of this agreement will help to substantially improve cash flow for funding Armco Metals Holdings' daily operations and future expansion plans. Armco Metals Holdings sees this relationship with Mitsui Shanghai having further expansion opportunity for the company into Japan and other potential markets throughout the world due to Mitsui & Co.'s global industrial distribution footprint.
Commenting on the announcement, Kexuan Yao, Chairman and CEO of Armco Metals Holdings, stated, "We look forward to a successful partnership with Mitsui & Co. as we expand our steel scrap distribution channels to Japan. We appreciate this opportunity to establish a long term business relationship with one of the largest general trading companies in the world, and we intend to work diligently to support Mitsui & Co. in their efforts to help us achieve significant sales growth in fiscal 2014 and beyond."
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, 2012, and our subsequent filing with the Securities and Exchange Commission.