Armco Enters Into Agreement With Chile Supplier For Woodchips Purchase

(RTTNews) - Armco Metals Holdings Inc (AMCO), a distributor of imported metal ores and a steel recycler in China, Monday announced that its Armco Metals International, Inc subsidiary entered into an agreement with a Chile supplier for woodchips purchase.

Under the terms of the agreement, Armco International would purchase a trial shipment of Eucalyptus Nitens wood chips from the supplier with an amount of approximately 50,000 Green Metric Tons ("GMT") (+/-10%) in October 2014 and an one year total importation of 550,000 to 600,000 GMT if the trial shipment is successful.

Based on the current market price in China, the market value for 600,000 GMT woodchip is approximately $63,000,000 and Armco estimates and aims to realize 10% gross margin on potential sales of the product.

Armco International's trading business team have been working diligently to add this new product to our trading business line, the company said.