WESTCHESTER, Ill.-( Business Wire )-
Insurance Auto Auctions, Inc. (IAA) the leading live and live-online salvage auto auction company and wholly-owned subsidiary of KAR Auction Services, Inc. (NYSE: KAR), today announced an agreement with Chen Jia, Inc. a wholly-owned subsidiary of Jiangsu Chenlong Resource Recycling Development Co. Ltd. in Zhangjiagang, Jiangsu, China. Chenlong Recycling is one of the first companies to obtain one of only a few recycling permits from the Chinese government that allows the import of salvage vehicles for the purpose of recycling.
“This agreement helps us achieve our growth strategy by expanding our global buyer base in a region with a fast-growing need for scrap metal,” said Tom O’Brien chief executive officer at Insurance Auto Auctions, Inc. “We are pleased that our long relationship with Chen Jia has added tangible value for vehicle sellers at our auctions. Their initial purchases at our locations along the West Coast have already created increased competition for vehicles and may eventually expand throughout the greater United States.”
In 2008, when IAA first met with Chenlong Recycling in China, plans were drawn for them to build a multi-million dollar recycling center in Zhangjiagang. Today, the recently completed facility is capable of processing hundreds of thousands of tons of scrap iron. They are the first in China to complete the installation of a shredder built specifically for the processing of scrap steel that includes automobiles coming from the United States and other countries. Through this new agreement, IAA has the ability to be a major salvage provider to this operation–specifically, lower-end vehicles for the purpose of recycling.
“There are several reasons why we chose IAA, including their 30 years of expertise in the salvage auction business and their global outlook,” said Gu Long Sheng, President of Jiangsu Chenlong Resource Recycling Development Co. Ltd. “The management team at IAA has been dedicated to seeing scrap vehicles legally enter the China market and their support of our efforts has been both encouraging and instrumental in helping us shape our business model in the U.S. Second, IAA is clearly a market leader and our relationship with them will help ensure our ability to source the salvage vehicles we need to meet our production demands.”
One of the best results of recycling metal from salvage vehicles is that it saves energy, conserves natural resources, and enables steel production with low pollution levels. According to the Institute of Scrap Recycling Industries, recycling one car conserves 2,500 lbs. of iron ore, 1400 lbs. of coal and 120 lbs. of limestone. Until recently, Chinese government laws prohibited the import of salvage vehicles from the United States into mainland China. Today, this recycling project is supported in China by the environmental protection body of the Chinese government.
For the past 30 years, Insurance Auto Auctions has continued to develop and cultivate a mature and global customer buyer base in over 100 countries. Our buyers include automotive body shops, rebuilders, used car dealers, automotive wholesalers, exporters, dismantlers, recyclers, brokers, and where allowed, non-licensed (public) buyers.
IAA buyers have access to six languages through our Auction Center including: English, Mandarin Chinese, Spanish, French, Polish and Russian. In addition, the IAA Buyer Services group is fluent in 10 languages to assist global buyers. An estimated 30 percent of IAA’s vehicles are sold and exported to foreign countries, which further strengthens its philosophy of choice and flexibility with “anywhere” access and mobile technology.
IAA’s well-established business model includes in-person and on-line auctions that allow the company to flex in ways a single auction model cannot. IAA can ensure its clients full access to the most comprehensive salvage auto auction network when they need it, and allow them to purchase in a manner that best suits their needs, leaving it up to them to choose how they participate and bid. IAA’s operational expertise enables the company to offer end-to-end solutions and standardized quality assurance practices at its nearly 160 locations. IAA experts are on hand at each branch location to assist buyers and sellers.
IAA follows strict regulatory compliance at the federal and state levels and is well versed in all state titling laws as well as buyer and seller licensing.
About Insurance Auto Auctions, Inc.
Insurance Auto Auctions is the leading live and live-online salvage vehicle auction company and a wholly-owned subsidiary of KAR Auction Services, Inc. (NYSE: KAR). Headquartered in Westchester, Illinois, IAA owns nearly 160 auction facilities throughout North America offering towing, financing and titling services. With the most auction facilities in North America, IAA provides registered buyers from around the globe with millions of opportunities to bid on and purchase donated and salvaged vehicles. Since 1982, IAA has sold millions of vehicles through its weekly auctions for insurance companies, fleet and rental companies, financing companies, charity organizations and the general public. With a talented team of over 1,800 employees, IAA is committed to providing customers with the highest level of services in the salvage auto industry. Go to www.iaai.com to learn more, and follow IAA on Facebook and Twitter.
Insurance Auto Auctions, Inc.Jeanene O’Brien, 708-492-7328Vice President, Marketingwww.iaai.com