China Armco Updates Recycling Business On New Qualification And Orders - China Armco Metals Becomes Demonstration Base For Steel Scrap Processing And Distribution In China And May Receive Tax Benefits
SAN MATEO, Calif., Feb. 6, 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 China, today announced that Armco (Lianyungang) Renewable Metals, Inc. ("Armco Lianyungang"), the Company's wholly owned subsidiary, has been certified as a Demonstration Base for Steel Scrap Processing and Distribution by the China Steel Scrap Industrial Associations, and therefore could benefit from a 50% value added tax (VAT) refund in 2013 according to the upcoming policy of the Chinese government.
Armco Lianyungang was selected among steel scrap companies in China upon assessment in respect of scale, equipment conditions, quality and environmental management systems and credit rating etc., pursuant to regulations promulgated by the Ministry of Industry and Information Technology of China in October 2012.
In addition, the Company has so far received orders amounted to approximately 360,000 metric tons of scrap steel for the year of 2013, which accounts for 60% of the Company's annual sales goal for 2013.
"We are confident that we will benefit from the certification as well as the possible tax refund. The tax refund when effective could lower our costs and increase our profits by a large margin, which may ease our capital stress and improve our competitive edge. Also, with the certification we are allowed to act as procurement agency for other uncertified companies, which could boost our domestic purchases and total sales," said Mr. Kexuan Yao, Chairman and CEO of China Armco. "In addition, we had a very good start for 2013 compared to previous years. So far the orders we have received for 2013 are significantly more than the same period of previous years. We believe that we will have a significant increase in sales in 2013."
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