AADCO Industries has signed a comprehensive automobileinsurance salvage contract with Meloche Monnex, the second largest directresponse insurer in Canada.
AADCO notes that the deal should increase the company’s flowof vehicles to 10,500 a year. A big advantage AADCO brings to the agreement is thecompany’s reverse assembly process, which greatly reduces the amount of excess materialthat can’t be recycled.
According to the deal, AADCO will purchase and recycle automobilesalvage from Meloche Monnex and its affiliates in Ontario and Atlantic Canada.
On average, each recycled vehicle creates 500 pounds of automotiveshredder residue that generally ends up in landfills. With the North Americanmarket exceeding 12 million vehicles per year, six million new pounds of ASRare produced annually and AADCO's unique process strives to dismantle, reuseand recycle up to 96 percent of a vehicle.
``This announcement is in line with our growth strategy,''said Ron Ledbrook, vice president of sales for AADCO. ``It will significantlyincrease our volume of business and, in turn, market position.''
``We are excited about this new relationship,'' said HenryBlumenthal, vice president, Claims Services, Ontario and Atlantic Canada, atMeloche Monnex. ``The focus of AADCO on recovering quality used parts allows usto be aligned with best industry practices and contribute to the overallimprovement of the environment.''
Additionally, Ledbrook notes that the two companies alsowill work to have AADCO provide Meloche with automobile parts, creating a “closedloop” system.
AADCO is an indoor auto dismantler and recycler withfacilities in Brampton and Richmond Hill, aggregating 105,000 square feet.AADCO's dismantling process recovers quality used parts for resale to auto bodyand mechanical shops, recyclers, part rebuilders and individuals.
The company does the majority of its dismantling at its Brampton,Ontario facility.