In the just-concluded two sessions, some representatives put forward a proposal on “remanufacturing”. They believe that the current global resources are scarce and there have been signs of energy shortages, steel shortages, ore shortages, and shortages of raw materials. “Remanufacturing” is worldwide. The inside is a very promising emerging industry.

Compared with new manufacturing, remanufacturing has many advantages: from the cost point of view, the cost of remanufactured products is only half of that of prototype products; at the same time, remanufactured products can save 70% of materials and realize energy saving of 60%.

The survey shows that the energy consumption of a new car engine is 10 times more than that of remanufacturing; the energy consumption for remanufacturing a car generator is 1/7 of the new manufacturing. Therefore, remanufacturing not only can obtain better economic benefits, but also can simultaneously obtain immeasurable environmental and social benefits. This has a very positive significance in promoting green manufacturing today.

China has scrapped about 2 million cars each year. However, the scrapped automobile product recycling industry still belongs to the Chaoyang industry. The potential for the development of automobile remanufacturing is very large. Related to this, China's engine remanufacturing industry is still in its midst. However, the international engine giants have been unable to hold back and must stride into the just-started market. Forces include North American Caterpillar and Cummins.

Caterpillar's subsidiary, Caterpillar (China) Investment Co., Ltd. and Yuchai Joint Stock Co., Ltd. jointly established a company to provide remanufacturing services for Yuchai diesel engines and components and parts of Caterpillar diesel engines and components. Cummins got a move earlier. After Cummins signed a cooperation agreement with Cummins of the United States on a remanufacturing project, Cummins China’s leadership team made it clear that Cummins will continue to develop new products and technologies that meet the most stringent emission regulations and reduce energy consumption. The goal of the platoon is fulfilled. The most important one is to promote the remanufacturing industry technology. It is understood that Dongfeng Cummins has been one of the first batch of remanufactured industrial bases that have obtained state permits, and is forming a large-scale remanufactured circular economy industrial chain. The first phase will form an annual production capacity of 10,000 remanufactured engines.

However, according to an authoritative forecast, China’s current remanufacturing market is not large. The annual scale is approximately US$10 billion, which is much smaller than that of an international parts giant. Even Caterpillar and Cummins are unable to develop. What are the reasons?

According to relevant experts, due to the traditional old concepts and related inadvertent publicity, a considerable number of engine users in the society still lack the necessary knowledge and understanding of the performance, efficiency, and after-sales service of the regenerator. In addition, the country has not yet unified the logo of the regenerators, and there is no uniform quality standard, causing users to worry about whether to use the regenerator, wait and see, and low recognition. In this way, over the years when social vehicles were scrapped, they formed the status quo that scrapped five major assemblies can only be sold to local scrap car dismantling companies, and they did not dare to sell directly to remanufacturing enterprises, resulting in the “raw material” source of remanufactured enterprises. The channels are monotonous, and the available resource channels are limited. Many available resources cannot be recycled in a timely manner, resulting in the waste of social resources.

In fact, most remanufacturers have the same problems. Therefore, many companies recommend that the state should increase its efforts in supporting the development of remanufacturers. The first is to increase policy coordination and propaganda. The second is to strengthen the management of the industry's centralized management. Eliminating re-manufacturing barriers among enterprises and implementing self-discipline in the industry are important prerequisites for ensuring the healthy development of remanufactured enterprises. The third is to increase support for preferential policies. The fourth is to increase market supervision. The state should quickly organize the establishment of a more complete domestic self-regulation, supervision by public opinion, and the integration of enterprises' participation in the domestic remanufacturing supervision system.

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