Asia – Armco Metals Holdings, a steel recycler and distributor of imported metal ores, is establishing an ‘online to offline platform’ for its steel scrap business. The Chinese firm describes the move as a ‘strategic development’ to expand this area of its business beyond the traditional trading model.
The e-commerce operations will be based in Shanghai and conducted through new company Shanghai Meng Yi Network Technology Co., which has been in the process of registration. It has been established by four shareholders, with Armco Metals Shanghai representing the largest of the quartet.
Kexuan Yao, chairman of Armco Metals, will serve as executive director of the new company. E-commerce has been ‘developing quickly’ in China, he notes, and the government is actively encouraging companies to respond to this trend. ‘Once the platform grows to a certain scale, we believe greater sales revenue and profit for our steel scrap business could be expected,’ he adds.