China Armco Metals, Inc. (NYSE:CNAM) received a license to import and process scrap metals directly from overseas to China.
As quoted in the press release:
With the license, China Armco can import and process scrap metals from overseas directly, which will significantly improve its global sourcing capability and cost control by removing import agents and directly working with global suppliers. More importantly, this license is the key to the Company’s business strategy which it aims to generate excess profits in processing imported scrap metals by capitalizing on China labor cost advantages and its state-of-the-art scrap metal recycling facility.
China Armco’s Chairman and CEO, Kexuan Yao, said:
The import license is an important and valuable asset of the Company. Obtaining the license enables management to further implement our business strategy of achieving excess profit through processing imported scrap metals that we believe could produce higher margin products than those of local scrap metals and establishing the Company’s competitive advantage over other players in the market.