Press Release:
Green
Parts International (GNPT) Announces Launch of Scrap Metal Division and Trade
Show Booth at World Scrap Metal Congress 2006 in Shanghai, China
Announced the formation of a new
commodity division to broker scrap metal based on the booming world demand for
secondary metals. Sales of U.S. ferrous scrap were an estimated $12.6 billion in
2005. Over 67 million tons were melted down domestically accounting for
two-thirds of all U.S. iron and steel production with another 14 million tons
going overseas.
The new division
will be headquartered in Atlanta, GA handling exports of scrap metal to China,
India, Bangladesh, Africa, the Mid-East and Europe. A West Coast export division
will take advantage of the cheaper China container freight rates from the Ports
of Long Beach and Los Angeles.
Asif Balagam, President, stated
"Our clients have established banking arrangements for payment of scrap
metal through international 'Letters of Credit' in the multi-millions of
dollars. We believe that our scrap metal division based upon existing contracts
in China, Bangladesh and India will generate over $250,000 in quarterly near
term earnings with EBIDTA targeted at 25-30%.
To view the Full Press Release please visit http://biz.yahoo.com/bw/060717/20060717005964.html?.v=1
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GreenParts
Inc. (GNPT)
Website:
www.greenparts.com
“IF
WE CAN’T SELL IT, WE DON’T BUY IT”
Overview
GreenParts Inc.
(GNPT) is in the business of
recycling automotive products, also known as salvage yards or automobile
dismantlers. Their business is to procure severely damaged or total loss
vehicles and disassembling them for their salvage parts, other mechanical parts
and scrap value.
Based on the company’s strategic plans for
growth, both internally and through aggressive acquisitions, the company is well
positioned to become a key player in this industry over the next several years
as the industry continues to consolidate and as worldwide demand for recycled
automotive parts and scrap metal continues to explode.
GreenParts supports an integrated auto salvage,
repair parts and scrap metals business from its headquarters in Atlanta, GA. In
the next three years, GreenParts has targeted the acquisition of 32 salvage
yards in the US.
GNPT Investor Highlights
- Announced the formation of a new commodity division to broker scrap metal
based on the booming world demand for secondary metals. Sales of U.S.
ferrous scrap were an estimated $12.6 billion in 2005.
- GNPT believes that its scrap metal division based upon existing contracts
in China, Bangladesh and India will generate over $250,000 in quarterly near
term earnings with EBIDTA targeted at 25-30%.
- The Company's core auto salvage business has grown in the last 6 months
with year to date turn-over in excess of $1.2m with record profits and per
annum growth at 60% for the last 3 years combined.
- Currently operates out of two locations in the Atlanta area.
- Has targeted the acquisition of 32 salvage yards in the US. over the next
three years.
- The automotive products market
(including accessories, service, repairs and maintenance items) totaled
$190.5 billion in 2004 and is expected to easily top $200 billion in 2006.
- Inventory is linked to
a very sophisticated Internet infrastructure system developed by GreenParts
known as GEOS. GEOS will allow buyers, sellers, web customers and Int’l
businesses the opportunity to purchase online as well as place bids online
for GreenParts products and services. GEOS will enable each yard to have an
automated and centrally linked inventory system to maximize efficiency with
the retail stores and the GreenParts call center.
- GNPT's inventory system will also be tied into EDEN which is ADP’s
inventory network made available to the automotive industry and the general
public for identifying sources of recycled parts.
- GNPT is in discussions with major retail automotive concerns who
collectively have over 10,000 locations. GNPT wants to place Kiosks in these
stores within the next 5 years, establishing the first opportunity for a
retail customer to actually consider the option of purchasing a recycled
part from a retail store instead of the higher priced OEM part.
Industry
The automotive recycling industry is
highly fragmented, with very few multi-unit operators. It is estimated that
there are more than 6,000 automotive recyclers in the U.S. The company believes
approximately 93% of those automotive recyclers have less than $3.0 million in
annual revenue and that 50% have less than $500K in annual revenue.
The automotive products market
(including accessories, service, repairs and maintenance items) totaled $190.5
billion in 2004 and is expected to easily top $200 billion in 2006 according to
the Automotive Aftermarket Industry Aassociation(“AAIA”) fact book. Of that
amount, the recyclers primarily serve the collision repair market which was
estimated to be $36.1 billion in 2004 and the mechanical repair market estimated
at $98.1 billion in 2004.
Strategy
Currently GreenParts owns and operates 2 facilities,
both in the Atlanta community. They have targeted the acquisition of 32 salvage
yards within the US that are located in what they consider to be major growth
markets in the industry. These acquisitions are projected to take place within
the next 3 years.
Operations
GreenParts primarily purchases vehicles from
salvage auctions and from individual car owners. Once these vehicles are
acquired, they are then stripped of all usable “hard parts” (engines,
transmissions, start compressors, windshields, etc.) and “soft parts”
(mirrors, lights, seats, grilles, etc.). These parts are then cleaned,
refurbished if necessary, labeled and placed into the GreenParts inventory
system.
Unless these parts are sold
immediately at the salvage yard, they will be transported to a central yard of
GNPT, where the inventory not immediately sold to retail stores is kept. The
inventory will be then linked to a very sophisticated Internet infrastructure
system developed by GreenParts known as GEOS. GEOS will allow buyers, sellers,
web customers and Int’l businesses the opportunity to purchase online as well
as place bids online for GreenParts products and services. GEOS will enable each
yard to have an automated and centrally linked inventory system to maximize
efficiency with the retail stores and the GreenParts call center. The GNPT
inventory system will also be tied into EDEN which is ADP’s inventory network
made available to the automotive industry and the general public for identifying
sources of recycled parts.
GNPT's tight inventory control and software
technology will enable the company to turnover approximately 80% of their
inventory in 10 days or less and the remaining 20% with 45-60 days. This short
cycle turnover will leverage the company’s available capital for inventory
procurement.
Recent News and Press
Releases
Green
Parts International, Inc. Announces Launch of Scrap Metal Division and Trade
Show Booth at World Scrap Metal Congress 2006 in Shanghai, China
For the latest Quote and
News on GNPT Click
Here.
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