Jul 30 2010
China Armco Metals, Inc. (NYSE Amex: CNAM), a distributor of imported metal ore and a metal recycler with a new state-of-the-art scrap metal recycling facility in China, today announced that Armet Renewable Resourced Co., Ltd., the Company's wholly owned subsidiary, commenced shipments of metal from its recycling facility in June of 2010.
The second quarter shipments, totaling approximately 10,000 metric tons, represent the first quantity of end products produced and sold out of the new facility. The facility experienced a delay in ramping production in the second quarter due to power generation issues at the recently completed electric utility company in the Lianyangang enterprise zone which provides power to the area. As those issues have been resolved, management sees production at the facility ramping significantly in the third and fourth quarters as the company looks to deliver on its current supply contracts.
Commenting on the announcement, Mr. Kexuan Yao, CEO and Chairman of China Armco Metals, Inc., stated, "We are pleased to have reached this important milestone for our company. As we now ramp toward our goal of full production and the small startup issues are behind us, we believe the future for our company is brighter than ever. With the contracts, materials, manpower and equipment in place and operational, we now are in a position to realize our growth potential in the coming quarters and years for the benefit of our shareholders."