Insurance Auto Auctions, Inc. (IAA), just announced an agreement to expand
its partnership 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
recycling permits from the Chinese government that allows the import of
salvage vehicles for the purpose of recycling.

In the announcement, Tom O’Brien, IAA chief executive officer, says: “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.” O’Brien goes on to
say that, “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.”
A recently completed recycling facility owned by Chenlong Recycling in China
is capable of processing hundreds of thousands of tons of scrap iron. Chenlong
Recycling is the first company in China to complete the installation of a shredder
built specifically for the processing of scrap steel  that includes automobiles, parts like a transfer case, rear axle, or air flow meter.
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.

In related news, Toyota Tsusho announced a joint venture with Showa Metals as
well as Chinese companies to establish an automotive dismantling and
recycling company in Chengdu China. According to press reports, construction
on the ELV recycling facility is scheduled to begin this spring and be completed
by the end of the year. The facility will be build to handle a maximum capacity
of 2,000 to 3,000 vehicles per month.