Armco Metals Holdings, Inc. (NYSE MKT: AMCO) in the last decade has tirelessly worked to create low-cost, high-quality solutions to meet steel industry demands and achieve its goal to become the largest scrap steel recycler in China. The company operates through five subsidiaries located in key regions throughout the country to source, import, process and distribute quality, environmentally friendly recycled scrap steel, as well as metal and non-ferrous metal ore.
Subsidiaries Armco Metals International, Ltd., Armco (Lianyungang) Renewable Metals, Inc., Armet (Lianyungang) Holdings, Inc., Henan Armco & Metawise Trading Co., Ltd., Armco Metals (Shanghai) Holding, Ltd. support Armco Metals’ overarching corporate mission and operate to provide the country’s steel production industry with sustainable, responsible solutions to its material needs. Aligned with China’s green initiatives, Armco Metals and its subsidiaries are helping the government reach its scrap metal consumption goal of 20% by 2015.
Leveraging long-standing relationships with more than 10 international metal suppliers, over 100 small-sized and medium-sized Chinese steel production companies, and some of the country’s large state-run foundries, Armco Metals benefits from a steady and dependable supply of demand for the company’s high-quality product known for excellent market values.
Armco Metals’ management team has established a unique approach to business and environment by providing responsible solutions based on environmentally friendly practices; reliable, cost-effective sourcing; and quality metal products. Backed by more than 10 years of industry experience, company executives have successfully positioned the company as credible, dependable partner for customers, suppliers and investors within the steel production market.
- Mission to Become China’s Top Steel Recycler
32-Acre State-of-the-Art Scarp Metal Recycling Facility
Metal Recycling Operations Process 1M Tons Annually
Long-Standing Relationships with Key Industry Players
5 Subsidiaries Strategically Located Throughout China
Aligned with Chinese Government “Green” Initiatives
Skilled Management Implement Tactical Leadership
Metal Scrap Recycling
Each of the five subsidiaries of China Armco Metals plays a specific role in sourcing, importing, processing and distributing quality, environmentally friendly recycled scrap steel, as well as metal and non-ferrous metal ore. Together, these subsidiaries share Armco Metals’ corporate goal of becoming the largest recycled scrap steel provider in China, providing the country’s steel production industry with sustainable, responsible solutions to its material needs.
Armet (Lianyungang) Holdings, Inc.
Still early in the research and development phase, Armet (Lianyungang) Holdings, Inc. will focus solely on automotive scrap steel recycling. The automotive industry is one of the largest sources of scrap steel, and Armco Metals recognizes the potential this market has for meeting China’s steel production needs.
Currently, Armet Holdings is researching efficient, effective processing methods and equipment in order to deliver a high-quality, environmentally friendly product to steel mills and foundries throughout the country. Armet Holdings is located in Lianyungang, Jiangsu province, which offers the company significant advantages, including an exceptional transportation infrastructure and government energy and pollution reduction incentives.
Armco (Lianyungang) Renewable Metals, Inc.
Founded in January 2007, Armco (Lianyungang) Renewable Metals, Inc. is the core asset of Armco Metals, focused on recycling and processing scrap steel or use in China’s steel production industry. Located on 32 acres in the Banqiao Industrial Park in the Lianyungang Economic and Technological Development Zone, Jiangsu province, this state-of-the-art facility boasts one of the most advanced recycling systems in the world: a Texas Shredder Lindeman System. Currently, Armco Renewable Metals is capable of processing 1 million metric tons of scrap metal annually.
Armco Renewable Metals offers numerous advantages to suppliers and customers. The Jiangsu province is flanked by 11 steel mills with combined annual production of 20 million metric tons. The company’s facility itself is located only five miles from Lianyungang seaport, one of China’s major deep-sea ports. These factors, along with easy access to the convenient highway system and the Beijing-Hangzhou Grand Canal, make Lianyungang optimal for importing, processing, and distributing the recycled steel scrap.
In addition to the logistical benefits, the China Iron and Steel Association and the China Association of Metal Scrap Utilization have specified Lianyungang as the waste iron and scrap steel recycling processing pilot region for China. This gives Armco Renewable Metals additional advantages in terms government incentives to help the nation achieve its scrap metal consumption and energy and pollution reduction goals.
Metal Ore Trading
Armco Metals International, Ltd.
Founded in July 2001, Armco Metals International, Ltd. (formerly Armco & Metawise (H.K.), Ltd.) focuses on meeting the needs of China’s steel production industry through the sale of recycled scrap steel, as well as the import and distribution of metal and nonferrous metal ore. As a foreign company registered in Hong Kong, Armco Metals International takes advantage of the area’s highly developed, convenient finance and trading services, which creates greater opportunities for China Armco Metals as a whole.
Armco Metals International’s high-quality, environmentally friendly scrap steel is sourced and processed by another of Armco Metals’ subsidiaries, Armet (Lianyungang) Renewable Resource Co., Ltd. However, utilizing its experience and well-established relationships within the market, Armco Metals International is also able to source iron ore, chrome ore, nickel ore, manganese ore, and other nonferrous metals from ore-rich countries such as Australia, U.S., South Korean, Brazil and India at an attractive price point for consumers.
Henan Armco & Metawise Trading Co., Ltd.
Henan Armco & Metawise Trading Co., Ltd. was founded in June 2002 and is located in the capital of Henan province, Zhengzhou. Henan Armco & Metawise is mainly responsible for developing and maintaining Armco Metals’ mainland sales network for recycled scrap steel. Like Armco Metals International, Henan Armco & Metawise obtains quality, environmentally friendly scrap steel from Armet (Lianyungang) Renewable Resource Co., Ltd.
This subsidiary of Armco Metals also engages in the import and distribution of metal and non-ferrous metal ores, including iron ore, chrome ore, nickel ore and manganese ore. Henan Armco & Metawise has well-established relationships with more than 10 international metal suppliers, including Brazil, India, Australia, South Korea and the United States. Henan Armco & Metawise has built partnerships with several famous Chinese steel manufacturers and has a sales network that covers various provinces, such as Henan, Shaanxi, Shandong, Hubei, Sichuan, Liaoning, Anhui and Qinghai.
Armco Metals (Shanghai) Holding, Ltd.
Armco Metals (Shanghai) Holding, Ltd. was founded in July 2010. The company is located in Shanghai, China's financial center. As the head office in China for the U.S.-based Armco Metals, Armco Metals Shanghai is mainly responsible for capital investments, finance and accounting, and cash flow management for the corporation. In addition, Armco Metals Shanghai manages the core businesses of the other four subsidiaries, which includes international trading of ore products with the company’s suppliers, as well as the sourcing and distribution of scrap steel for reprocessing.
The strategic location of Armco Metals Shanghai helps the company develop and foster new business relationships inside and outside of the steel production, metal recycling, and metal distribution markets. As the largest eastern city and an advantageous international seaport, Shanghai is known as “China’s Business Window,” rapidly becoming the international economic, finance and trading center for the country.
Products and Development
For the foreseeable future, steel will remain the most effective means of construction for numerous industries. Using recycled scrap steel is a responsible, efficient and sustainable means for meeting this demand. China Armco Metals is dedicated to finding the most efficient, environmentally friendly solutions to China’s steel industry demands, allowing the country to continue its growth while helping to slow climate change.
China Armco Metals believes in taking a responsible approach to steel production. In addition to its environmentally responsible business practices, the company has aligned its product offerings with this goal in mind, so that the company and its customers can share in a cleaner, more environmentally sound future. Armco Metals is one of the leading recycled scrap steel sales and distribution companies in China.
Armco Metals: Recycled Scrap Steel
Armco Metals is dedicated to providing sustainable, efficient options for steel production. Companies that choose to utilize recycled scrap in their steel production incur numerous benefits, including using up to 60% less energy and reducing air and water pollution by 86% and 76%, respectively. The energy reduction alone translates to significant savings for steel producers annually.
In order to address customer demands for more responsible material choices - and in alignment with the Chinese government’s green initiatives - Armco Metals has created its own recycling facility, capable of producing cost-effective, environmentally friendly solutions for the country’s steel production needs.
The company’s Armco (Lianyungang) Renewable Metals subsidiary operates a state-of-the-art facility equipped with a Texas Shredder Lindeman System, one of the most advanced recycling systems in the world. This advanced system automatically shreds, sorts and separates the recycled scrap steel, efficiently processing the highest-quality material.
While Armco Renewable Metals is currently capable of processing 1 million metric tons of scrap metal annually, Armco Metals is working to develop its Armet (Lianyungang) Holdings subsidiary, which will add to this capability and focus solely on automotive scrap steel recycling to capitalize on this huge source of scrap steel.
Armco Metals: Metal and Non-Ferrous Metal Ore
As the largest steel producer in the world, China’s steel industry is in constant need of quality metal ores to meet production demands. Armco Metals has more than 10 years of experience sourcing and distributing metal and non-ferrous metal ore, including:
- Iron ore
Armco Metals has well-developed relationships with international metal suppliers in ore-rich countries, allowing the company to obtain favorable pricing for its customers at rates unavailable through direct market importing or spot markets. Committed to providing quality, Armco Metals sends its own staff on location to review the supplier’s operations and verify the ore quality.
In addition, Armco Metals has established a proven transportation system utilizing the country’s existing infrastructure, including three deep-sea ports, railway systems, and highway systems, to improve the time, costs and distance capabilities associated with ore distribution.
Strategy & Mission
Armco Metals for more than a decade has provided metal and non-ferrous metal ore sales and distribution solutions to companies in China’s growing steel production industry. Leveraging an extensive international sales channel, the company has aligned itself with the push for alternative, sustainable options for steel production.
One of the Chinese government’s green initiatives calls for the consumption of recycled scrap steel to increase from 15% in 2010 to 20% by 2015. Even now, the fragment recycling market in China is only capable of meeting 60% of the total recycled scrap steel demand.
Recognizing the potential, Armco Metals has aligned itself with this policy and created its Armet Renewable Resources subsidiary to take advantage of the situation. In addition, Armco Metals has plans to expand this operation over time, growing the current Armet Renewable Resource facility’s capacity to 2 million metric tons annually, as well as begin operations at Armet (Lianyungang) Holdings.
By utilizing its existing sales and distribution network, Armco Metals has already established more than 100 relationships with steel companies that will be looking to increase the amount of recycled steel scrap they utilize in their steel production. This helps to position Armco Metals to become the largest, most efficient recycled scrap steel producer in the country, paving the way for further growth and revenue.
The skilled executive management team of Armco Metals is leading the company toward its goal of becoming the largest scrap steel recycler in the country. The company’s long-standing business relationships have been cultivated through the executive team’s unique and effective approach to business.
Kexuan Yao, Chairman and Chief Executive Officer
Since June 2008, Kexuan Yao has served as Armco Metals’ chairman of the board of directors and chief executive officer. In addition, Yao has served as the chairman and general manager of Armco Metals International, Ltd. since its inception in 2001.
From 1996 to 2001, Yao served as the general manager of the Tianjin Branch for Zhengzhou Gaoxin District Development Co., Ltd., a Chinese metal distribution business. While there, he was responsible for managing the iron ore import department, which coordinates the delivery of iron ore from around the world to China.
Yao received a bachelor’s degree from Henan University of Agriculture in 1996 and obtained an EMBA degree from the China Europe International Business School (CEIBS) this year. Armco Metals’ board of directors believes Yao’s experience in the metal ore business, as well as his success in operating Armco Metals International, enhances the quality of the board of directors and is key to the company’s long-term success.
Fengtao Wen, Chief Financial Officer
Fengtao Wen served as Armco Metals’ chief financial officer since June 2008. Additionally, Wen served as the accounting manager of Armco Metals International and its subsidiary, Henan Armco & Metawise Trading Co., Ltd. since 2005. As the accounting manager, he is responsible for supervising the financial controls and management of these entities.
Wen graduated from the Economics Department of Zhengzhou University in 1996 and promptly took a position in the accounting department of Zhengzhou Smithing Co., Ltd. where he remained until joining Armco Metals in 2005.
Weigang Zhao, Vice General Manager of Armet (Lianyungang) Renewable Resources and Director
Weigang Zhao has been a member of Armco Metals’ board of directors since June 2008. A key employee, he has served as the vice general manager of Armco Metals International’s subsidiary, Armet (Lianyungang) Renewable Resources Co., Ltd., since 2007.
From 2005 through 2006, Zhao served as a manager in the supply department at Henan Anyang Steel Co., Ltd. Zhao served as the marketing manager at Sinotrans Henan Co., Ltd. from 2003 through 2004. Zhao graduated with a bachelor’s degree in economics from Henan College of Finance and Economics in 2002. The company’s board of directors believes Zhao’s experience in the steel industry is a key qualification for his inclusion on the board.
Armco Metals Holdings, Inc.
One Waters Park Drive Suite 98
San Mateo, CA 94403
Phone: (650) 212-7620
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