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.”
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV