China Armco is principally engaged in the import, sales and distribution of metal ores, non-ferrous metals to the metal refinery industry in China.
The Company is constructing a scrap metal recycling facility in the Banqiao Industrial Zone of Lianyungang Economic Development Zone in Jiangsu Province with a production capacity of one million metric tons of recycled scrap steel. It is expected to commence operation in 3Q of 2009.
China Armco has as its market China, which is the world’s largest producer and consumer of steel products with a total steel output of 489 million metric tons in 2007.
China is expected to maintain a relatively strong economic growth of 7-8% in the coming years and the Central Government will choose to accelerate the country’s infrastructure developments to drive the economy.
Dutton Associates, an independent investment research company writes: ‘We are very bullish on the outlook of the scrap steel recycling industry in China, due to low level of scrap steel reused in steel production of just 16% in 2006 compared to 50% in the global market. We see very lucrative profit potential for the scrap steel recycling project.’
Source: Red Orbit