May 19 2014
Armco Metals Holdings, Inc., a distributor of imported metal ores and a steel recycler in China, today announced that its Armco Renewable Metals, Inc. subsidiary has entered into a steel scrap distribution agreement with TEWOO Metals International Trade Co., Ltd., 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."
Source: http://www.armcometals.com/