17/04/2014

ARN works towards recognition of intermediaries

ARN works towards recognition of intermediaries

As of 1 July 2014, participating car dismantling companies can work together with ARN-recognised intermediaries. This is ARN’s next step in the transition begun earlier this year in which car dismantling companies receive payment on the basis of the quality of the wrecks they supply. The recognition also anticipates the legal changes that, by mid-2015, will provide clarity about the legal position of intermediaries.


Intermediaries have for years played an important role in the recycling chain for wrecks. About 16 percent of all wrecks currently land at an ARN-recognised shredder company via an intermediary. Because there is not enough supervision of how intermediaries process the wrecks, their method of working is currently prohibited by law. “That is strange, considering that there are intermediaries who have a permit to store wrecks on their grounds. Moreover, because of their share of the market, we can’t get around intermediary trade,” said Johan Blom, ARN’s account manager. “There is talk of new regulations starting by mid-2015 that will formalize the role of intermediaries in dealing with wrecks. In anticipation of this, we are working to create an ARN-recognition for intermediaries.”

Positive reactions

The ARN knows of thirty intermediaries who work regularly with the car dismantling companies affiliated with ARN. “Our intention is to make them all ARN-recognised before 1 July. Discussions are ongoing, and the reactions are positive. The Metal Recycling Federation (MRF) and STIBA also reacted positively,” continued Johan Blom. “And the recognition is granted with the reservation of changes in the regulations. If the changes aren’t made, the recognition will lapse because ARN is, of course, not above the law.”

Quality and leakage

The ARN-recognition of intermediaries provides more clarity on how wrecks are processed. But what happens when a car dismantling company delivers a car to a non-recognised intermediary? “A car dismantling company affiliated with ARN is not paid for a wreck delivered to an intermediary without ARN-recognition. Nothing will change here,” said Johan Blom. “This step is in line with the transition begun by ARN this year with regard to paying for wrecks on the basis of their quality. In addition, an ARN-recognition for intermediaries is a good instrument for further limiting the leaks in the stream. That too is a good reason to further involve the intermediaries in the chain.”

 


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