Insurance Auto Auctions paves way for recycling U.S. salvage vehicles in China
Insurance Auto Auctions, Inc. (IAA), a wholly-owned subsidiary of KAR Auction Services, Inc., created 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.
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. 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.