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RECYCLING AU ST R A L I A News, Views and Information for Professional Auto Recyclers

May 2010 – Volume 1 Number 3

Designing the ultimate in Auto Recycling Equipment

Around Around the the Traps Traps … … Capalaba Capalaba Wreckers Wreckers Auto Auto Parts Parts Recycling Recycling … … New New Zealand Zealand Style Style

Auto Recycling Eco Friendly

Product Showcase ... Kobelco's Car Dismantling Monster Special Special reports, reports, local local and and global global news news

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Mail: P.O. Box: 83, Avalon, NSW 2107 Telephone: 02 9973 2298 Fax: 02 9973 1838 Mobile: 0418 298 572 Email:

Write offs, Recycled Parts and Tours


here are many of positive happenings right now for recyclers in the market. The nonrepairable write-off legislation planned to come into effect in August 2010 in NSW could be the first move in a National push for this legislation. I attended the press conference in Sydney where the NSW Transport Minister, David Campbell, outlined the reasons for the legislation and how it would work. That report is featured on page 19 so check it out. What it basically means is that insurers in NSW will now have to really decide what to do with vehicles that they would previously write off and collect dollars for at auction. The vehicle will either have to be deemed repairable, in which case the collision repairers win as do recyclers if they supply parts, or it will be written off and non-repairable so that the recycler wins with parts for sale. On another positive note the largest insurer in Australia, IAG, has just sent out a directive to all the repairers in their repairer network advising what their policy is on the parts to be used on vehicles which they authorise for repair. That report is on page 6 and once again it points out to a win for recyclers. Vehicles over three years old will no longer receive authorisation to be repaired using nongenuine or aftermarket parts. Recycled parts are the first priority on those vehicles with genuine as second choice. This will also be reported on in the June issue of The National Collision Repairer magazine to ensure that all of the industry is aware of this fact. I recently arranged a tour for participants in the CRSA (Collision Repair Specialists of Australia) to visit some leading facilities in Dandenong. I can tell you that the repairers were really blown away by how professional and sophisticated this industry now is. There is no doubt that there are many collision repairers in the marketplace who do not use recycled parts because of either preconceptions of the industry or bad experiences in the past. With this directive

from IAG they will now need to put together relationships with recyclers so this represents an opportunity for recyclers to be proactive and chase up some business ... over to you. If you don't do it then I am sure somebody else will. I-CAR (in the US a not-for-profit training organisation) has put together a new course entitled Recycled Parts for Collision Repair. (See Global news page 13). I will be

checking with I-CAR Australia (I am on the board) to check out if this course will be offered at some stage in the future and keep you updated on that. It will also be a positive for the industry if it does happen. Actual Systems are arranging to hold a conference during October 2010. There will be exact details in the next issue of ARA but in the meantime call Chrissy on Tel: (02) 8197 0444 if you need information earlier. Lots of information to read and digest in this issue once again. Talk to you in the next issue. ARA David Newton-Ross, Editor







Editor: David Newton-Ross 02 9973 2298 0418 298 572

Views and AUTO News, Information for


Publisher: Mike Third 03 9793 4022 0419 525 330


Contributors: Stephen Tapner Maurice O’Reilly Bill Bartlett

6 Local News, Views and Information

Sub Editor: George Ball

12 Global News, Views and Information

Advertising Sales Enquiries: David Newton-Ross 02 9973 2298 Chris Stone 02 4777 5650

14 Around the Traps … Capalaba Wreckers

Advertising Sales – Victoria: Barry Browne 03 9807 9154 0418 322 243

16 Product Showcase

Production Enquiries: Stone Dezine 109 Kenmare Road, Londonderry NSW 2753 02 4777 5650 Printed by: Bright Print 02 9757 3000 Published by: Auto Recycling Australia Pty Ltd 121 Greens Road, Dandenong, Vic 3175, Australia 03 9793 4022 The Auto Recycling Australia is published by Auto Recycling Australia Pty Ltd, 121 Greens Road, Dandenong. Phone: (03) 9793 4022. This book is copyright. Apart from any fair dealing for the purpose of private study, research, criticism or review as permitted under the Copyright Act, no part may be reproduced by any process without written permission. Enquiries should be addressed to the publishers. The publishers believe all the information supplied in this book to be correct at the time of printing. They are not, however, in a position to make a guarantee to this effect and accept no liability in the event of any information proving inaccurate. Prices, addresses and phone numbers were, after investigation and to the best of our knowledge and belief, up to date at the time of printing, but the shifting sands of time may change them in some cases. It is not possible for the publishers to ensure that advertisements which appear in this publication comply with the Trade Practices Act, 1974. The responsibility must therefore be on the person, company or advertising agency submitting the advertisements for publication. While every endeavour has been made to ensure complete accuracy, the publishers cannot be held responsible for any errors or omissions. Copyright © Auto Recycling Australia Pty Ltd ABN 291 392 07748

Stephen Tapner of Actual Systems talked to Chris Lawrence about changes in his business with three specialist yards combining into one.

After selling more than 1000 Multi-Dismantling machines in Japan Kobelco are now marketing in Australia. The first machine is in use at Total Auto Recyclers in Dandenong. How did that happen?

18 Managing Written-Off Vehicles NMVTRC talks about reforms to the system of managing written-off vehicles and we report on the action taken by the NSW Government with legislation to ban the re-registering of written-off vehicles.

20 Around the Traps … Recycling across the Ditch David Newton-Ross met Harry Dodson of Dodson's Autospares in Auckland New Zealand to find out how they operate across the ditch.

22 Cutting Corners Bill Bartlett talks about what is making news in the industry.


The National



CollisionWeek The







Professional Auto Recyclers

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Local News ★



Acquisition of Metals Trading OneSteel Limited has announced that its Recycling business has purchased the Metals Trading business. Metals Trading is a scrap dealer with businesses in New South Wales and Victoria and is a supplier to OneSteel's Recycling business. The company operates scrapyards in metropolitan Sydney at Padstow and Seven Hills and metropolitan Melbourne at Thomastown and Kilsyth, as well as regional yards in Wagga Wagga and Corowa in New South Wales and Mildura in Victoria.

Metals Trading collects approximately 120 thousand tonnes of ferrous scrap and 30 thousand tonnes of non-ferrous scrap per annum. OneSteel's Managing Director and Chief Executive Officer, Mr Geoff Plummer, said: "Metals Trading is a good strategic fit for our Recycling business because of the location of its sites as well as the increased confidence it provides us over the sourcing of supply of scrap metal." ARA

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IAG Update on parts in repair IAG recently notified all members of their repairer network a confirmation of their guidelines around parts usage as follows: ● "We will only use new OEM parts on vehicles under three years old ● We will not authorise the use of nongenuine or aftermarket parts on any vehicles* ● We will authorise the fitting of used OEM parts in cars over three years old

consistent with the condition of the vehicle. IAG states that: "We believe these guidelines make what is acceptable usage of parts much clearer and will simplify the authorising of repairs. *limited exceptions such as radiators, windscreens, glass and availability. ARA Editor: This should ensure more business for recyclers across the country!

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APR Network Expands APR has recently announced the addition of two more key suppliers to their APR Authorised Supplier network – Euro Asia Pty Ltd and Central Motor Wreckers. Central Motor Wreckers (CMW) in Ballarat is now a strategic partner in central Victoria. Jamie Nunn and his team have a track record of supplying quality products and services throughout Australia and especially in their local region. "It was a big decision to commit to this initiative, but it is clearly the right thing for our future growth. APR is the premier Supply Chain in Australia and the APR systems are unique not only in Australia but world-wide. Helping realise the APR vision is exciting and I am really thrilled at our inclusion," Jamie Nunn said. Euro Asia Pty Ltd (also known in the market as ASV and Euro Car Parts) is the other new addition to the network. After careful assessment, Aron, Sam, Vic, Avo Soghomonian and APR have agreed to work together and take supply to a new level, initially in Sydney, closely followed by




Victoria and other states later this year. Euro Asia has a very strong European supply base and will be a valuable inclusion. Headed by Aron Soghomonian (Managing Director) with the support of Mario Dimovski (Relationship Manager), Euro Asia is developing a new business unit within their already very strong sales room. The APR Euro Asia office will take care of all APR related enquiries, whether they are from repairers, insurers or other APR suppliers. ARA For further information contact Chris Daglis, email: or on Tel: 0411 743 560.

News from Actual Systems It is always good to know a little bit about who you are talking to on the phone or dealing with in business. Actual Systems has provided the following information on some of their key personnel: Chrissy Pantlin – Office Manager Chrissy has strong Human Resources and organisational skills and will be invaluable in setting up our new Australian office, arranging the proposed dismantler conference and keeping the guys in check! She has owned her own company in the leisure industry but has decided to change tack and widen her horizons with Actual Systems. She has a keen interest in F1 and 4×4 driving. Stephen Tapner – Implementation and Training Manager Steve comes from a management background in the Dismantling Industry having been the proprietor of his own dismantling business in Newcastle for 14 years. He has been involved with the Pinnacle software since it was first used in Australia in 2004. Jacques Franken – Support & Installation Technician Originally from South Africa, Jacques has been involved in computing for over 20 years and has vast experience of all the key technologies Actual Systems use for Pinnacle Classic and Pinnacle Professional. He is a qualified computer technician but picks up most of his knowledge from personal experience and self-learning. His interests include music, hiking, camping, photography and 'gadgets'. He describes himself as not a typical nerd! He is excellent at communicating with non-technology minded people and is very easy to talk to and get along with! ARA

Collision Repairers visit Auto Recycling businesses Participants of the CRSA (Collision Repair Specialists of Australia) who were in Melbourne for a conference during April paid a visit to two recycling facilities to gain a better understanding of how the recycling industry now operates. With insurers looking at recycling versus non-genuine parts for repair the visit was certainly timely and the shop owners came away very impressed with what they saw. One of the topics for discussion at the conference was recycled parts and those who did not attend the tour were very able to see from the PowerPoint presentation how much the industry has changed. ARA Editor: If recyclers want to attract business from the collision repair industry they will need to market themselves to that industry. The repairers from this visit will no doubt be dealing with recyclers in their area now that they understand what is available and how it all works.

National Representation for Auto Recyclers – Where are we?


Motor Trades Association of Australia

In the previous issue of this magazine we reported on the national Automotive Parts Recyclers Association meeting held in Perth in November 2009. It was an excellent meeting attended by recycling industry representatives from each State and Territory. Many important issues affecting the future of our industry were considered and actions were agreed to be taken. What has happened since? Nothing ‌ as far as we can see. Media reports from earlier this year advised that the Motor Trades Association of Australia, the national industry body that operates the Automotive Parts Recyclers Association, was: "teetering on the edge after the resignation of a key motoring association, MTA NSW in late December. This follows the earlier departure of the Victorian, Tasmanian and Queensland motor trader associations". (See page?? For news on AAIA being formed) National representation for the motor trades generally is clearly in disarray and representation of our industry is suffering as a consequence. These are matters that concern many recyclers who have a long standing commitment to the national representation of our industry. ARA AUTO




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Local News ★



AAIA – the new national automotive industry body MTA-NSW, MTAQ, VACC and TACC, which represent approximately 80 percent of the repair, service and retail sector of the Australian automotive industry, have announced the formation of a new national automotive industry body. The Australian Automotive Industry Association (AAIA) has been established to meet the needs of retail automotive associations was launched at a media conference in Melbourne on May 6th. This is the first major shake-up of the Australian retail automotive industry for more than 20 years. The MTAA (Motor Trades Association of Australia) was set up in 1988, but MTAQ, MTA-NSW, VACC and TACC have withdrawn their membership. It was felt the MTAA business model, which had served its purpose in the past, was not appropriate for the future. AAIA's business model will be less bureaucratic, more transparent, more interactive, more responsive and reduced in scale and cost. AAIA will also be more representative of the industry as work will be undertaken by members utilising their




MTA-NSW, James McCall, said. "We had sought to reform MTAA from within but found that was impossible. Therefore, we have established a new association which will be less distant and more connected with the needs and desires of automotive businesses nationwide," MTAQ, Executive Director, Ian Field, said. "AAIA members will be served by a comprehensive support network. We felt our industry had to evolve in order to stay ahead and under the previous structure we were falling behind," said VACC, Executive Director, David Purchase. "The AAIA will enable true representation at a national level. We have every confidence that the voice of the Australian automotive industry will be heard and respected," TACC, General Manager, Malcolm Little, said. ARA


particular areas of expertise. "It is not unusual for associations to have to remodel themselves to keep up with the demands of modern business practices. This gives AAIA members an opportunity to look ahead with confidence and to work in an environment that best serves the interests of the employers we represent," CEO,

Editor: This was not totally unexpected.

Five Minutes with…

Information from VicRoads repairable write-offs, VicRoads recognises that there may be delays in people getting appointments for a VIV inspection. To minimise the impact of these delays, VicRoads will allow vehicles to be registered or remain registered pending the VIV inspection. "It is important to try to get an appointment as soon as possible, however, owners will have until 31 December 2010 to get a VIV certificate for these hail damaged vehicles or their registration will be cancelled." Liddle said owners who have already had notification of registration cancellation due to the superficial hail damage to their vehicles should contact VicRoads on 1300 650 266. "In these cases, registration will be extended in line with these special conditions and these owners will also have until 31 December 2010 to provide a VIV certificate." ARA For more information go to Written-off vehicle registration on VicRoads website.

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Vale Kiyoyuki Sakai 1950 – 2010 On behalf of the Auto Recycling Industry and his friends and colleagues here in Australia we would like to express our deepest sympathy to the family of Kiyoyuki Sakai who passed away suddenly at his home in February. 'Kiyo' was a vital and healthy man, so the unexpected sad news has been an enormous shock to all who knew him. He was just 60 years of age. He was one of the pioneers of the used-parts export trade and for more than 30 years helped many foreign business men access Japanese supply resources. Kiyo forged many lasting friendships with Australians and New Zealanders on his trips downunder. He worked tirelessly for his industry over many years as President of Japanese End of Life Vehicle Recyclers Association and played an important role in the development of Japan's ELV Recycling Laws. His expertise, influence and friendly manner will cause him to be remembered as one of the industry's greatest ambassadors. The wonderful relationships he built and fostered saw him held in very high regard and respected by many of his peers in the industry around the world.


More than a thousand people, including a number of his overseas colleagues attended the moving traditional Japanese memorial service to celebrate his life. We offer our sincere condolences to his family at this very sad time. ARA AUTO




Harry Dodson Company Dodson Autospares Ltd

Five minutes with HARRY DODSON

Owners of Victorian vehicles written off by their insurers as a result of the hail storms on 6 March 2010 will not be required to repair superficial damage to their vehicles, said VicRoads Chief Executive, Gary Liddle. "Estimates to date indicate that up to 20,000 vehicles may have been damaged by the event. "VicRoads maintains a Written-Off Vehicle Register (WOVR) and a repairable written-off vehicle is one that has been damaged to the extent that the cost of repair is more than its market value. "For these written-off vehicles to be or remain registered a Vehicle Identity Validation (VIV) inspection is required to confirm the identity of the vehicle and to verify that there is no structural damage or any stolen parts used for any repairs. "The standard fee for this inspection will apply and a Roadworthy Certificate will still be required." Liddle said given the high number of hail damaged vehicles assessed as

When did you join the industry? 16 years old (30 odd years ago) What was your first job in the industry? Spare parts assistant at Continental Car Services What do you do now? Managing director What do you like about the industry? The constant changes and adapting to them What don't you like about the industry? How we are still selling our parts at the same price as we where 20 years ago What music do you like? Rock Your Favourite Artist? U2 and The Feelers Your favourite food? Everything that is bad for us Your favourite drink? Chardonnay Your hobbies? Yacht racing and Motor racing Who in the world would you most like to meet? Richard Branson

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Local News ★



Car batteries… An environmental success story? More than 97 percent of all battery lead is recycled. Compare this to 55 percent of aluminum soft drink and beer cans, 45 percent of newspapers, 26percent of glass bottles and 26 percent of tires. Lead-acid batteries top the list of the world's most highly recycled products. Over 100 million car batteries are replaced very year in the USA alone and according to the U.S. Environmental Protection Agency, 99 percent of them are recycled. Globally your ordinary everyday 12 volt car battery is the world's most recycled consumer product. All components that make up a lead acid battery can be recycled. Around 98percent of the lead, the polypropylene plastic case and even the sulfuric acid electrolyte can be neutralized and turned into water or converted into sodium sulfate for other uses. The car battery is an environmental

success story because of its closed-loop life cycle. The typical new lead-acid battery contains 60 to 80 percent recycled lead and plastic. The process goes on indefinitely being recycled many times over, making it extremely successful from both environmental and cost perspectives. On the flip side incorrect disposal has been regarded as one of the world's worst pollution problems. In third world countries the informal recovery of lead from batteries has been responsible for countless deaths from acute lead poisoning. Fortunately thanks to the Basel Convention export of lead-acid batteries to third world countries is banned. The future for battery recycling looks even brighter with the proliferation of Hybrid and electric vehicles. While lead is a highly toxic substance, causing brain damage, most battery packs found in Hybrid and Electric vehicles are Nickel /

Metal hydride or lithium-ion and are essentially a whole lot less hazardous. No top of this secondary markets for battery packs are being developed. For instance, renewable energy generated by solar panels or wind generators can be stored and used locally in remote areas or developing countries by using recycled vehicle battery packs as accumulators to store electricity. As we reported in the first edition of ARA; Toyota, which has built two thirds of the world's hybrid cars, has already put procedures in place for its dealers to properly dispose of battery packs from its cars like the Prius and Camry. ARA

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ELV Disposal ... How it works in the UK Disposing of a Vehicle at the end of its life in the UK is not just a matter of dropping it off at your nearest scrap yard or just letting somebody take it away like here in Australia. Disposing of a car to a Shredder




company or scrap metal dealer is just not possible unless it has undergone proper treatment at a licensed facility. In the UK the Vehicle Licensing Agency (DVLA) must be properly notified of its disposal. The DVLA has the authority to carry out enforcement action against the registered owner directly from information held on the vehicle licence records. Under this system if you are still listed as the registered owner with DVLA all offenses involving the vehicle will be your responsibility. To avoid being accountable for offences committed after you have disposed of the car owners must deliver their End of Life Vehicle to an Authorised Treatment Facility(ATF) permitted by the Environment Agencies. The ATF receiving the vehicle will issue the owner with a Certificate of Destruction which ends their responsibility for the vehicle from its date of issue. All members of the Motor Vehicle Dismantlers Association (MVDA) are required to be registered as ATFs and can offer this service. Disposing of a vehicle to an MVDA member not only means that the owner receives a Certificate of Destruction but

they can also rest assured that their vehicle will be de-polluted and recycled to the highest possible standard. Protecting them and protecting their environment. Auto Recyclers who are members of their Motor Vehicle Dismantlers Association in the UK benefit from being the only ones who are allowed to handle ELVs. This authorisation is in recognised for the vital role they perform. ARA

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Global News & ★



Recycling Congress (IARC)


Over the years, the International Automobile Recycling Congress (IARC) organised by Swiss company ICM AG has become the international platform for discussions of the latest developments and challenges relating to end-of-life vehicle (ELV) recycling. The latest of these events drew an attendance of almost 200 delegates from 29 countries as well as 20 exhibitors, including equipment manufacturers and service providers to the industry. Included among the topics and problems put under the microscope at the tenth IARC gathering in the Swiss city of Basel were: waste-to-energy solutions; legislative bottlenecks, the environmental impact of new (electric) vehicle technologies such as nickel metal hydride batteries; materials trade and logistics; and shredding. There was also an update on latest recycling technologies and

reports on recycling developments in individual countries. Cocktail receptions and a networking dinner created an excellent atmosphere to get in touch with business partners, friends and competitors. On the final day of the congress, delegates were also given the opportunity to participate in plant tours to car production and recycling plants in the area. Editor: Overseas meetings and conferences such as this represent great networking and information opportunities.

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Succession at SEDA After more than 40 years building SEDA in to the internationally successful company that it is today, Josef Dagn has, effective 1 February 2010, handed over the reins of SEDA-Umwelttechnik GmbH to his Son, Rainer Dagn. Rainer Dagn will lead head both SEDA Kössen and Ebbs in Austria as well as JOSEF JOSEF & & RAINER RAINER DAGN DAGN SEDA-Benelux B.V. in The Netherlands und SEDAEnvironmental LLC in the USA together with SEDA´s Managing Director Dipl. Ing. Joachim Vogt. SEDA´s intentions are to continue offering best performing products with top service in order to maintain and increase our position as the world's number one choice for End of Life Vehicle drainage technologies. The intended expansion will come by improving our market share in those countries where we are already active, by seeking out new international markets and by introducing exciting new recycling products to the world. Josef Dagn will continue to offer his valuable advice and experience to SEDA and will still play an important role in the development of new products. ARA




5th World Recycling Forum 5th World Recycling Forum. Hong Kong International Conference & Exhibition on Electronics, Car and Battery Recycling. The major recycling forum in China, the 5th World Recycling Forum will take place from November 15-18, 2010 in the beautiful "Pearl of the Orient", Hong Kong. During the event, leading recycling experts from around the world, including manufacturers, collectors, processors, steelmakers, legislators and policy-makers will meet to discuss: ● OEM's success and challenges regarding recycling ● Implementation of extended producer responsibility ● Best available technologies for dismantling, sorting and recycling ● Quality standards in recycling – how to check and monitor? ● Global trade and transboundary movement of raw materials and waste ● Update on worldwide recycling laws and regulations ● News about processes and plants for recycling and recovery ● "Good morning Asia!" Reports about recycling and raw materials businesses ● Consequences of import duties – a method to control mass flows into Asian countries ● Reuse, repair and recovery of used equipment ● Country reports on recycling. An exhibition area is integrated into the forum facility, where vendors meet their clients. A cocktail reception and a networking dinner create an excellent atmosphere to get in touch with your business partners, friends and competitors. The forum is a platform to exchange information, to meet new business partners and to get easy access to new potential clients. For further information please contact: ICM AG, International Congress and Marketing, Jeanette Duttlinger Schwaderhof 7, 5708 Birrwil, Switzerland Phone: +41 62 785 1000 Fax: +41 62 785 1005 Email: Website: ARA Editor: Sounds like a perfect opportunity to mix with your peers overseas!

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Five Minutes with…

Automotive Recyclers and I-CAR Agree to Information Exchange

I-CAR Introduces recycled parts for collision repair course to the industry I-CAR, the Inter-Industry Conference on Auto Collision Repair, has announced that it will introduce a new course that

provides training on using recycled parts during the collision repair process beginning on May 18. Recycled Parts for Collision Repair (RCY01) is a four-hour, live training course that offers students information on how automotive parts recycling can reduce total losses, improve cycle time and potentially result in a less-intrusive repair. Course topics also include the processes of a typical recycled parts facility as well as procedures for inspecting recycled parts and preparing them for installation. While I-CAR does not take a position on the use of recycled parts (with the exception of not recommending the use of recycled airbags or passive restraint systems), the training organization understands there are different considerations that need to take place if the decision is made to do so. "This program is not about making the business decision around whether or not to use recycled parts, but rather one that offers solid guidelines if the decision to use has been made," said Jeff Peevy, I-CAR Director of Field Operations. "The industry has indicated this class will be very popular." Recycled Parts for Collision Repair provides a comprehensive overview of several aspects of the automotive recycling industry to facility managers, technicians, and insurance company personnel. After completing this course, the student will be able to: ● Understand the automotive recycling industry and organisations ● Describe the benefits of using recycled parts ● Identify parts that are commonly recycled and those that are not ● Explain considerations for ordering parts ● Determine if a part has been previously repaired ● Understand the steps for preparing and installing recycled parts. ARA Editor: What a great idea! I will let you know if and when this will be offered in Australia. AUTO



Tony Lacarruba Toyrolla Spares Epping Victoria

Five minutes with TONY LACARRUBA

The Automotive Recyclers Association AUSTRALIA Education Foundation (ARAEF), developer of educational programs for the automotive recycling industry, announced a collaboration agreement with I-CAR. In a Memorandum of Understanding (MOU), the two organizations outlined plans for mutually promoting the level of knowledge and skills required to improve communication and educational exchanges between the recycling and repair industries. "Our planned partnership presents an enormous range of potential benefits to the automotive recycling and collision industries," said ARAEF Managing Director Virginia Whelan. "This collaboration will undoubtedly result in new educational training tools and endeavours with tremendous potential for innovation and far-reaching benefit." "A mutual understanding of each other's industries can go a long way in improving communications and meeting customer expectations," said Jamie Jacobs, I-CAR Instructional Designer. "This agreement between the ARAEF and I-CAR is a big step forward toward this goal, and provides a commitment from both industries to continuing education with regard to the considerations for recycled parts usage during collision repairs." The ARA Educational Foundation is a non-profit organization formed to research and develop learning materials for automotive recyclers. The ARAEF is the founder of the ARA University, an online training platform for the automotive recycling industry. Editor: Our colleagues in the US are on the ball with this initiative to bring recyclers and repairers closer together! This was announced about two months ago and followed up by the following:


When did you join the industry? April Fool's Day 1989 What was your first job? Tax Accounting What do you do now? Owner/Partner Toyrolla Spares What do you like about the industry? The diversity and work flexibility, business travel. What don't you like about the industry? The stigma attached to 'Car Wrecking'. Not being recognised by the rest of society for the vital roll we responsible auto recyclers play. This needs to change. What music do you like? Most popular music. Your Favourite Artist? Michael Jackson Your favourite food? Veal Cutlets Your favourite drink? The coffee we drink at Pickles Auctions in Melbourne Your hobbies? Boating and Snow Skiing Who in the world would you most like to meet? The Pope.

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Capalaba Wreckers – Brisbane

Around the



Capalaba Wreckers … moving forwards

Auto Recycling Eco Friendly

Capalaba Wreckers is a dismantler located on a large site in southeastern Brisbane. It is a major business serving trade, wholesale and retail customers throughout Brisbane and south-east Queensland. Stephen Tapner reports.


apalaba Wreckers is a dismantler located on a large site in southeastern Brisbane. It is a major business serving trade, wholesale and retail customers throughout Brisbane and south-east Queensland. Until mid last year the business operated as three separate yards (Holden and Ford, 4WD and Korean, Japanese) at this one location. The site also operated without any inventory system and a minimum of computerisation. In July last year the business owner, Chris Lawrence, made the decision to dramatically change his operation. These changes included combining the three yards into one with a new dedicated sales area and phone room at the front of the site and also to introduce a computerised inventory and management software – Pinnacle. Stephen Tapner of Actual Systems (supplier of Pinnacle) asked Chris about his business and the effect of the recent changes to it. ST: Chris, can you tell us a little bit about the history of the site your business is on? It's a large site and I guess it has been a dismantler's site for quite some time, from when Capalaba was an outlying suburb of Brisbane? CL: The site has been a dismantling yard for over 50 years. In my lifetime I can remember it being a gravel road out the front, now it is a four-lane divided road. ST: South-East Queensland has been a major growth area for many years now. Do you think your business has benefitted from this? CL: Without doubt the population growth has been amazing. We have seen a large increase in both our trade and public customer base. ST: Yours was a family business and I




assume every member has left a mark on the business by their involvement. Where do you think it is headed now in your hands? CL: Hopefully in the right direction! My older brother was the only other Lawrence to own this site and he had it for about 12 years before I started buying into it. I finished buying the complete business and property from him about five years ago.

you start a pick a part yard as well. This is an interesting new venture, has this caused you any problems with existing customers now that they have to get their own parts off for the older model cars? CL: The public seem to have embraced it and we still provide full service for our trade customers even if it means feeding parts through the main yard.

ST: The recent change, of combining the three specialist yards into one, has seen

ST: So how is it going so far? And which of the areas of change has been hardest

to impliement? CL: Not everyone likes change, including myself. I am lucky to have an understanding and loyal staff that has all helped adapt and embrace it. The new site plan has actually been the toughest change. ST: Until these recent changes the businesses had no inventory system and everything had to be found to be quoted. How are your sales staff going with this, are they benefitting yet from the change? CL: In some ways it is still a little early to really see the advantages but we are all confident this was the right move for securing our futures.

mark and in this area we really are starting to see the reasons we made this change in the first place. The information that is being provided is extremely beneficial in a lot of respects. ST: What's your future vision for the dismantling industry and would you like to share it with us? CL: In my humble opinion for what it is worth, I can see that the landscape is changing dramatically. There is no more standing still, doing things the same

traditional way we have been taught or continued to do for decades. I think you are either moving forwards or embracing technology and how it can help in our industry or you are going backwards. There is no standing still anymore. ARA Editor: Chris' business has certainly moved with the times. They have embraced technology and are positioned with an eye on the future.

ST: Computer systems generally allow managers to take control of things like stock level and part price, things that are often out of managements control when no systems are in place. You have been on the Pinnacle system for over six months now do you think stock level and pricing have started to be influenced yet by Pinnacle? CL: We are now pushing the nine-month





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Product ★



A Giant Leap Forward A routine visit to Japan more than two decades ago has literally changed the way Mike Third, owner of Total Auto Recyclers in Dandenong, Victoria, runs his business. It was on that trip to Japan that he first saw Kobelco's Multi-Dismantling machine take an entire car apart in just minutes.


saw the possibilities immediately," said Mike. "It looked like a dinosaur eating its prey, but I knew it actually represented the future of my business. Dismantling a whole car in a matter of minutes – and using just one person, the operator – was a revolutionary idea. I had to have one!" The Kobelco Multi-Dismantling machine, first developed in Japan in 1979, allows auto recyclers to separate the recyclable materials quickly and easily. It separates the copper from the steel, makes light work of removing harnesses and is, according to Mike, twice as fast as four people dismantling a car by hand. "The machine does, indeed, look like a giant bird of prey as it devours its kill," said Kobelco Australia's Brand Leader, Doug McQuinn. "The clamp arms hold the car in place while the nibbler – which rotates 360 degrees – grips each part in turn and pulls it away from the vehicle. The machine has the strength to pull the body apart and the finesse to remove tricky, small engine components." Although Kobelco had sold more than 1000 Multi-Dismantling machines in Japan since 1979, the machine was not yet available in Australia. Mike set about acquiring a secondhand unit from Japan, but very few came on the market. Then the new version of the Multi-Dismantling Machine was released in 2006 with an important new feature. The clamp arms could now move laterally as well as up and down, giving even more control and accuracy. As well as stabilising objects for dismantling, the clamp arms could now ensure a tighter grip for cutting, while the bowl-shaped grips and cutting teeth fulfilled a wide range of functions during the dismantling process. "I knew the machines must be as good as I thought, because the people who




already had them in Japan never seemed to want to sell them!" said Mike. "When the new ones came out, the stakes changed. I had to have a brand new one, mainly because of the new clamp arms. I renewed my efforts to get hold of a machine, but customers in Japan were waiting up to nine months for their new machines, so I knew my chances were slim." Mike persisted and, in October 2009, became the first Australian customer to take delivery of a Multi-Dismantling machine. "I was one of the first two customers outside Japan to get one of these beauties and, to me, it was better than taking delivery of a new Ferrari," he said. Mike's new unit is a Kobelco SK135SRD. Based on the 13-tonne excavator platform, this machine is ideal for complex work such as loom removal and engine dismantling. The larger 20 tonne Kobelco SK200-8 model is

stronger, making it ideal for dismantling light trucks as well as cars. "The nibblers and clamp arms are the result of more than three decades' experience by Kobelco Japan in dismantling cars, engines and other household goods," explained Doug. "Learning to operate the machines is a relatively quick and easy process and once an operator is confident on the controls the nibblers and clamp arms become an extension of the operator's own body. It's this intuitive ease of use that helps make the dismantling process so fast and effective." Mike agrees, saying the most important quality he looks for in an operator is an understanding of the overall dismantling process. "When the operator has basic dismantling knowledge, they can learn to operate the machine very quickly. Once



Mike travelled to Japan as a guest of they become confident the machine is delicate enough to pick a teacup off the Kobelco to visit the Hiroshima production ground without breaking it," he said. "The plant. process becomes second nature, and "It was amazing to see where these that's when you see real efficiency gains. giants are put together. I didn't need Being able to eliminate the labour costs much convincing by then, but I could see for at least three people is a huge saving how quality control and attention to detail for my business. Just as importantly, was paramount," said Mike. "We also using the machine with one operator is attended the biannual Car Dismantling actually much safer than dismantling cars Competition, where we saw the best of by hand." Japan's Multi-Dismantling Machine The machine has a large, comfortable operators compete for the honour of cab that offers outstanding allaround visibility and is also heavily DALE AND WAYNE IMLACH WITH THEIR protected, not just from rolling NEW SK200-8 over but from flying or falling debris. The short rear swing specification means the rear corner of the upper frame doesn't project beyond the crawler width, making it ideal for working safely in confined spaces. Before purchasing his machine,

being number one. They dismantled a car and separated all the materials in just 10 minutes. It takes us closer to half an hour, but that's still more than twice as fast as we could do it without the machine." Mike believes the demand for these machines has only just begun and their availability in Australia is likely to change the industry forever. "The global push for more efficient recycling will help drive demand for these machines worldwide," said Mike. "I may have been the first Australian customer, but I'm no longer alone. Already three other machines have been delivered into the Australian market. Corio Wreckers in Geelong and Pick N Pay Less in Sydney have both purchased SK135SRD machines and Imlach's in Melbourne has just taken delivery of one SK200-8 machine. I think the industry will take a huge step forward thanks to these machines." ARA For further information about Kobelco's Multi-Dismantling machines, please contact Doug McQuinn, Kobelco Brand Leader, Australia, on Tel: 0427 004 447. AUTO




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Special Report


Assuring the Better Management of Written-off Vehicles


n effective system for the management of written-off vehicle (WOV) identities has been at the core of the NMVTRC's strategy to combat the activities of organised criminals since its inception. And initially, the first round of WOV reforms implemented between 2002 and 2004 delivered an almost immediate 20 per cent drop in related criminal activity. However, by late 2006 stolen/not recovered (SNR) rates began to rise and police-primarily in New South Wales (NSW) and Western Australia-began to identify substantial numbers of repairable write-offs (RWOs) being rebuilt with stolen parts. Subsequent police investigations also confirmed that the production of high quality fraudulent receipts (and the payment of secret commissions to acquire 'genuine' receipts) to give the parts used in repairing RWOs a veneer of authenticity was rife. The NMVTRC first flagged its concerns about the trend in its annual strategic planning workshops in 2007. In 2008 we commissioned an expert economic analysis of a range of options for reform. As was to be expected, responses to this work represented a diverse range of stakeholder perspectives and the NMVTRC determined that pursuit of the higher order intervention would be non-productive. It instead settled on pursuing a wider examination of related issues and in mid2009, to identify the key areas of the current regime that require modification. Since that time, the NMVTRC has been

working with a select group of representatives of some twenty stakeholders and specialist consultants to develop workable proposals for the reform of the system. The aim is to make the national system more impervious to criminal and other consumer fraud practices. Key projects include the: ● review of the national assessment criteria for WOVs to take account of the significant changes in vehicle design, construction and repair techniques since the current criteria were set to ensure that vehicles which should not be repaired on safety grounds are classified appropriately; and ● development of more consistent and robust vehicle identity and safety inspection regimes. A report on the possible changes to the damage criteria is at last in the final stages of preparation and is expected to be released for general comment in early May. A special briefing session on the key changes recommended in the report will also be held in Melbourne on 25 May 2010. To register for a copy of the report or briefing session, send your contact details

to, using Review of Damage Criteria in the subject line. Some readers will be aware that on 8 April the NSW Government announced that it proposed to introduce a total ban on the reregistration of written-off vehicles. While the legislative detail is yet to be seen, Minister Campbell's press indicates that there will be only very limited exemptions for enthusiasts' vehicles, vehicles of high personal value, specific high value vehicles, and some hail-damaged vehicles. The ban will be achieved by expanding the definition of a statutory write-off (SWO) to include all vehicles that are currently classified as RWOs. Other provisions will: ● subject end-of-life vehicles processed as scrap to be recorded as SWOs; ● attempt to restrict the sale of NSW WOVs in other jurisdictions by imposing penalties on those who attempt to do so; and ● continue to allow for the transfer of reregistered RWOs from other jurisdictions to NSW. Whilst the NMVTRC has been an advocate of a nationally consistent approach to addressing the problems the current system faces, it does not see that the NSW announcement changes our current course. We will however be working closely with transport agencies and police in other jurisdictions to minimise the displacement of criminal activity by, for example, monitoring the movement of WOVs between states and changes in local SNR rates. This article courtesy of the NMVRTC. ARA


The Auto Recycling Eco Friendly logo will represent the Auto Recycling Australia tick of approval. This will be awarded to members of our AU ST R A L I A industry that show a positive direction towards News, Views and Information for improving our industry. Professional Auto Recyclers


Auto Recycling Eco Friendly




Re-rego ban to prevent car rebirthing in NSW


he re-registration of written-off vehicles will soon be banned in NSW in an effort to curb vehicle theft and protect unwitting drivers from unsafe repair jobs. This was announced at a press conference called by the NSW Transport Minister, David Campbell during April. The NSW government is the first state to introduce such a ban, which means writeoffs will no longer be able to be sold at auction. Transport Minister Campbell says the ban, which will come into effect in August, will help curb the re-birthing of stolen cars, which has links to organised crime syndicates. "There's a black market for purchasing written-off vehicles at auctions, then using stolen parts to re-birth and register the car, to be sold for a tidy profit," Campbell told reporters."It's estimated that as many as six out of 10 of the 20,537 repairable written-off vehicles presented for reregistering in 2009 pose serious questions about the origin of the parts used to repair them.Today's announcement will put a massive dent in these illegal operations." The ban would also protect unwary motorists, Campbell said. "Some consumers are being taken for a ride; motorists might be driving around in what's effectively a stolen vehicle." More importantly, many of these vehicles have had dodgy repairs which can mask major structural damage. It's extremely unsafe." To emphasise one of the reason for this

proposed bill Minister Campbell used a very badly repaired Toyota Corolla as an example. If you take a look at the photographs of the vehicle you will understand his concerns. MTANSW CEO James McCall who was also at the press conference had this to say in a press release afterwards. "The Motor Traders Association of NSW applauds the action Government and particularly the Minister David Campbell to ensure written off-motor vehicles no longer represents a danger to the public or a mechanism to legitimize stolen vehicles. A great many written off vehicles are purchased at auction by ‘back-yard’ repairers, cosmetically repaired and put back on the road in an unsafe condition. Many of these vehicles are death traps. "There is also substantial evidence highlighting that the availability of repairable written-off vehicles is significantly contributing to motor vehicle based crime and the industry welcomes

any effort to reduce criminal activity and unsafe vehicles on our roads "The decision announced by the Minister, David Campbell, shows that the NSW Government recognises the seriousness of this growing problem and has the courage to act in the best interest of NSW consumers, despite intense opposition from the insurance industry and its agents. "There are, on average 35,900 vehicles written off annually in NSW. Considering these vehicles are assessed by insurance companies as unfit for repair it is distressing that approximately 13,600 of these vehicles are presented for reregistration each year. "It is important to note that whilst the overall motor vehicle theft figures have reduced in recent years," continued Mr McCall, "the number of vehicles that are unrecovered each year has remained static and in some years actually increased. "When a vehicle is unrecovered it is usually an indication that professional gangs are involved," says McCall. "Professional gangs employ a variety of methods to cover their crimes and rebirthed vehicles find their way back into the market, usually purchased privately from an unknown person. The unsuspecting buyer then finds out the vehicle has previously been written-off and in some instances the vehicle is seized by Police as it has been repaired using stolen parts or the identifiers have been interfered with. "Even if a vehicle is not repaired using stolen parts, backyarders repair the written off vehicle using whatever means necessary and have no regard for the ongoing safety of the vehicle. "I have seen written off vehicles repaired without replacing airbags that have been deployed and the wiring is interfered with so that the driver has no idea the airbags won't work in a collision," McCall said. ARA Editor: It remains to be seen how this will affect the recycling industry. AUTO




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Dodson's Autospares – Glenfield, Auckland

Around the


Recycling across the ditch

In our first issue we published a report on the industry in New Zealand from Maurice O'Reilly and in that talked about Dodson's Auto Recycling Autospares as an original importing recycler of the new era Eco Friendly still in existence and doing well; David Newton-Ross paid a visit to Harry Dodson's facility in the Auckland suburb of Glenfield recently. ARA: Are you the normal recycling operation for New Zealand? HD: Not 100 percent. The cars we recycle are generally more top end. A lot of the cars we recycle we bring in complete from Japan but the majority of our stock is imported already stripped down. ARA: You began 27 years ago, was that in business or the recycling business? HD: In the recycling business. We had a nationwide family business similar to Repco selling hard parts. When we started this business you could only import the panel parts; the engines were restricted, you had to have a licence for everything. So we started in the panel business and eventually we moved into the engine business and in those days we were wrecking only about two cars a month and the rest of the parts were imported. As the mechanical side came on we moved into the engines and components and all of those things have taken a huge turnaround because in the early days we sold complete engines. We did not sell parts off the engine. Friday afternoon was our busiest day we would have people queued up here taking away their engine to install themselves over the weekend. Now Friday is dead as people can't fit the engines anymore! In our workshop here now we even do engine fits for franchised dealers! The engine itself has become more reliable now; it is the components, electrical which breaks down. Probably 60 percent of our business now is not the engine it is the entire bolt-on parts that we sell. I think one day we may have a 100 percent change from when we first started in this business. In the early days it was the insurer who drove our business but it was the panel beater who was our customer. With the advent of Parts Trader (parts locating system) that has taken the relationship from supplier-repairer away to





came in and the model range simply blew out! In support of that, of course, the franchise dealer did not want to support those cars that were coming in so our industry really grew so big; now we are seeing the repair pool shrink and the franchise dealers becoming better at what they do and more competitive. The car pool is growing so our market share has reduced but the business has not. ARA: Your stockholding would have to be higher then? HD: Yes.

now being nothing more than we are supplying the parts, not really any relationship as they have to buy from where they are instructed to do so. ARA: I agree; most businesses are built on relationships so once you take that away what have you got! So over the years the mix has changed in your business. HD: In the early days we had a limited model range and then when the imports

ARA: Is your stock on computer? HD: Yes it is. We bucked it for quite some time but now I am glad that we went with computers. As our margin has shrunk, now with reporting and knowledge of what we have in stock and the margins, without computers we would be in trouble. ARA: Your association in New Zealand, APIA (Automotive Parts Industry Association) of which you are Chairman, how long has that been operating? HD: Around 20 years, it started out when BMW took action against and importer/dismantler for importing used parts and so a group of us got together and put

some money into a fighting fund in support. That was really the start of the association. The legal action did not happen so we stagnated a bit but about 15 years ago we got really active again. We now have 130 members in New Zealand and they are dealer/dismantlers, importer/dismantlers or importers but all with the same interest. We act for the members whether that is political or environmental issues. We have a National Executive throughout New Zealand and they

meet with the members in their area on a regular basis. We have our AGM and then everything else is electronically circulated. We also have our own parts locating system in place and this is working quite well and one of our large insurers AMI is supporting us via their repairer network. ARA: What feedback do you have on your system? HD: It has all been mainly positive.


Editor: Harry and his team made me most welcome and I must say they have an outstanding facility and a great understanding of the market. Their association is also very strong and their parts locating system is working very well for them. They have readily adapted to the many changes over the past 20 years or so and are positioned to continue to thrive and consolidate their position in the New Zealand market.





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And Now for the News Update Insulated from Reality? Maybe it's the Canberra water...the rarefied air...or something else which causes good stimulus ideas to falter in the implementation! With the home insulation program especially, industry representative bodies were instrumental in identifying deficiencies and advising on corrective action. The reminder to Government from various recent stimulus program issues is that early consultation with industry, whether homeinsulation or end-of-life vehicle management is a great way of keeping industry on side, not disrupting and disadvantaging genuine businesses and ensuring the desired program outcomes. Attack of the hybrids Opportunity knocks. With the expected strong growth of hybrid vehicles over the next few years, research and development crews must be chewing a bit more valium of late, as they contend with the everchanging dynamics of this alternative power source/fuel industry. And just as hybrids seemed to be the undisputed future in efficient power systems, the new Ford Fiesta ECOnetic's refined turbo-diesel has pipped the well-developed Toyota Prius Hybrid for the best fuel economy from a standard production car, which also emits low carbon ...and at a price advantage of around $15,000.00 compared with the Prius! Hydrogen fuel cells, many hybrid variations and fuel alternatives for much-refined combustion engines are being rapidly developed to meet the planned Euro 6 emission standards and with increasing improvements in battery technologies it seems that hybrid power will remain a dominant player. Steadily increasing oil prices, combined with steadily decreasing battery prices will further support this technology. Among hybrid-specific recycling opportunities, it should be worth watching the options which will emerge for reuse of battery packs which are beyond powering a vehicle but still suitable for other lower power- demand uses. GM promotes this recycling facility as a feature of their battery technology, even suggesting that the battery



to be recycled will have a retained value of about half the cost of a new replacement. Not bad, given a predicted 10 year life from their particular battery. Car Allowance Rebate Scheme ... C.A.R.S. "CASH 4 CLUNKERS.” Some vehicle manufacturers are again talking-up the perceived benefits of a taxpayer-funded stimulus to promote the trading of "clunkers" on new greener cars. The last time this option was raised, Government opted for the successful 50 percent tax concession scheme which greatly boosted car sales to the small-business sector and the scheme was not tied to the removal of older vehicles from the road. It is significant that the sought-after Australian version of C4C has not received much oxygen from a broad range of car makers. Australian governments recognise the strategic importance of a strong local vehicle manufacturing industry and already provide substantial government funding to local producers. Perhaps our locals have the view that promoting our own C4C scheme may be going to the well just once too often? Nor has the idea gained unequivocal support from F.C.A.I. Whilst reduction of carbon emissions is necessary, the C4C approach has had mixed results in various countries, with claimed successes being tempered by unintended consequences. The Harvard Business Review described the U.S. scheme as "an unjustifiable drain on the American taxpayer" that had already bailed out GM and Chrysler once and couldn't justify tipping in another $3 billion so dealers could avoid discounting their margins. A more radical assessment by further upset the White House by contending that the true cost to taxpayers was $24000 per vehicle ... based on Edmund's view that only 20 percent of extra vehicles were sold. Dollars aside, what are the recyclers issues in all of this? Up to 10 tonnes of greenhouse emissions are produced in manufacturing/distributing a new vehicle...hardly a blessing. Is it wise to create


a C4C program which hastens the demise of even sound driveable cars? Simultaneously reducing the demand for ...and availability of used parts, which would otherwise occur if vehicles see out their useful life, denies recyclers and the repair and service industry normal trading opportunities. Further, it is a sometimes overlooked truism that the environmental benefits of parts reuse and minimising greenhouse emissions from a properly maintained vehicle compare most favourably with emissions created in the manufacture of a new vehicle. Obviously, any thought of adopting a C4C program requires broad assessment, well beyond the benefits which accrue from simply selling new cars. NSW goes it alone, written off vehicle classifications The announcement that NSW will shortly classify RWOs as Statuary write-offs, thus banning the re-registration of most repaired WOV's in that State, caught many by surprise. Clearly, this departure from nationally consistent WOVR and re-registration practices has the potential for a range of consequences both in NSW and around Australia. NSW has been described as the hub of vehicle crime in Australia, with authorities understandably critical of the ease with which criminal elements obtain RWO's and manipulate State law in the repair and reregistration of these vehicles. The potential for simply shifting the problem to other jurisdictions is but one issue which will no doubt be closely monitored. The effect on the recycling market, salvage values and demand for used parts are of concern to legitimate recyclers who understand that NMVTRC programs currently in hand will be providing national solutions to the issues which caused NSW to take their stand. ARA Happy trading ... and just keep smiling. Bill Bartlett, Editorial Contributor

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OneSteel Recycling is Australia’s leading scrap metal recycler – making new steel products from recycled scrap metal. Operating in 37 locations across the country, we specialize in servicing the auto recycling industry in every state. Contact the company with the expertise and service level to meet all your scrap metal recycling needs.

Call OneSteel Recycling on 13 METAL (13 63 825). WEBSITE EMAIL Copyright 2008-2009 OneSteel Recycling Pty Limited ABN 28 002 707 262. Updated 0909. TS0516


AUSTRALIA Product Showcase ... Kobelco's Car Dismantling Monster Product Showcase ... Kobelco's Car Dismantling Monster Designing the ultima...

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