SAN MATEO, Calif., June 27, 2011 (GLOBE NEWSWIRE) -- China Armco Metals, Inc. (AMEX:CNAM) ("China Armco" or "the Company"), a distributor of imported metal ore and metal recycler with a new scrap metal recycling facility in China, today announced two recent developments related to its metal recycling business.
Kexuan Yao, Chairman and Chief Executive Officer of China Armco, will be a guest speaker at the 2011 World Scrap Metal Congress held on November 2nd and 3rd in Shanghai. Over 200 suppliers, buyers and industry experts attend the World Scrap Metal Congress each year to develop relationships and gain critical insights regarding the state of the Chinese scrap metals market. Chairman Yao will discuss China's domestic scrap metal market in depth, including growth and procurement strategies. For further information on this event please visit: http://www.terrapinn.com/2011/world-scrap-metal-congress/.
Separately, the Company expects the recent announcement by the PRC Ministry of Commerce and Ministry of Finance regarding a cash-for-vehicles program to boost overall growth of the recycled metals market in China. The program, which started on June 8, 2011, will reward car owners between 11,000 RMB to 18,000 RMB ($1,700 to $2,700) if they register their vehicles to be scrapped in 2011. The program covers rural passenger vehicles between six and fifteen years old, city buses between eight and fifteen years old and heavy trucks between ten and fifteen years old. Currently recycled autos can be processed in China Armco's facility and China Armco expects that it will benefit from the program, which presents the opportunity to obtain more resources and channels to collect raw materials.
"I am honored to be a speaker at this year's World Scrap Metal Congress," said Mr. Kexuan Yao, CEO and Chairman of China Armco. "We look forward to meeting many new suppliers and potential customers as we continue to expand production at our metal recycling facility. Recent policy initiatives such as the cash-for-vehicles program signify the government's commitment to promote higher usage of recycled metals. As an emerging player in this market, we are positioned well to benefit from these policies."
About China Armco Metals, Inc.
China Armco Metals, Inc. trades metal ore and recycles scrap metal within the PRC, which is the world's largest importer of iron ore and has the world's largest market for scrap metal. Through its trading business, the company sells and distributes metal ore and non-ferrous metals within the PRC. Through its recently launched recycling business, the company recycles scrap metal (primarily steel) at its facility located in the Jiangsu province of the PRC and sells the recycled product to steel mills within the PRC. Materials used in the company's business are sourced from global suppliers, including countries such as Brazil and India. For more information about China Armco, please visit http://www.armcometals.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 relating to our operations, results of operations and other matters that are based on our current expectations, estimates, forecasts and projections. Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will," "expect," "anticipate," "estimate," "intend," "plan," "believe," "project," "may", "potential," "opportunity" and "should") are intended to identify forward-looking statements and may involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our expectations regarding the impact of the cash-for-vehicles program announced by the PRC Ministry of Commerce and Ministry of Finance on our operations.
We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Such factors include, but are not limited to: fluctuations in the prices of metals, ore and scrap metal, the growth rate of the Chinese and world economy and related economic factors, fluctuations in supply and demand of metals, ore and scrap metal, our ability to secure supplies of metals, ore and scrap metal upon favorable terms, our ability to resell metals and ores at current market prices and on favorable terms, our ability to finance the purchase price of metals, ore and scrap metal (and the continued willingness of our Chairman to personally guarantee such financing), our ability to repay our indebtedness, our ability to retain current customers and suppliers and attract new customers and suppliers, our ability to continue to improve production rates at our recycling facility, our ability to establish adequate management, legal and financial controls in the United States and China, the actions (including for example electric power limitations and currency controls) of government and regulatory bodies in China and United States, the negative market and governmental reaction to "reverse merger" Chinese companies due to high profile frauds and other problems noted in the press, and the cautionary statements and risk factors contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2010, as amended by Form 10-K/A, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2011. Most of these factors are beyond our ability to predict or control. New factors that could cause actual results to differ materially from those expressed in the forward-looking statements emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Each forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.