SAN MATEO, Calif.
, Jan. 2, 2013 /PRNewswire/ -- China Armco Metals, Inc. (NYSE MKT: CNAM) ("China Armco" or the "Company"), a distributor of imported metal ore and metal recycler with a new state-of-the-art scrap metal recycling facility in
, today announced that Armco ( Lianyungang) Renewable Metals, Inc., the Company's wholly owned subsidiary, has obtained the qualification from Chinese regulators to import and process various scrap metals, including waste metal appliances, scrap wires/cables and waste electric motors, from overseas to
The qualification was approved and authorized by the Ministry of Environmental Protection of the PRC after its strict examination and assessment. The Company has been working on the application of the license since entering the scrap metal recycling business and the Company believes that the obtaining of the qualification is a big milestone in its recycling business development. With the license, China Armco can import and process scrap metals from overseas directly, which will significantly improve its global sourcing capability and cost control by removing import agents and directly working with global suppliers. More importantly, this license is the key to the Company's business strategy which it aims to generate excess profits in processing imported scrap metals by capitalizing on
labor cost advantages and its state-of-the-art scrap metal recycling facility.
"I am very excited about the important progress of our recycling business, which we have been working hard on since we entered the business," said Mr. Kexuan Yao, Chairman and CEO of the China Armco. "The import license is an important and valuable asset of the Company. Obtaining the license enables management to further implement our business strategy of achieving excess profit through processing imported scrap metals that we believe could produce higher margin products than those of local scrap metals, and establishing the Company's competitive advantage over other players in the market. Also we believe that the Chinese qualification will further help us to build our reputation in the industry and market. Management is now more confident in our recycling business operation and strategy and in our effort to deliver more value to all our shareholders."