Insight
It's time for "Remanufactured in China"
Last Updated:2012-05-21 15:03 | CE.cn
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By Dong Bijuan


"Made in China" has created miracles. Now, can "Remanufactured in China" achieve the same glory? Remanufacturing is an advanced mode of the recycling economy. Through lot production by professional repair of used car parts, engineering machinery, and machine tools, remanufacturing can save energy by 60 percent, materials by 70 percent, cost by 50 percent, and emission into the air by 80 percent, while the quality and performance of the remanufactured products are as good as, if not better than, new products. Developing remanufacturing is of great significance energy conservation and environment protection; moreover, it is an important impetus for promoting the upgrade of the manufacturing and modern service industries and the reform of the economy. China's remanufacturing is materializing, with energetic development prospect.   

 


Enterprises: eager to try and act


What really encouraged Ge Hong, deputy secretary general of China Internal Combustion Engine Industry Association (CICEIA), was that: in the internal combustion engine remanufacturing industry development seminar organized by CICEIA in 2011, the 70 chairs in the meeting, originally considered sufficient, were not enough. "More than 100 people took part in the meeting. Those who didn't grab a seat just stood in the back until the end of the meeting", said Ge Hong, "It reflects that people are paying more attention to remanufacturing and that market demand is increasing".


From March 19 to 23, 2012, a survey team led by Ge Hong conducted a survey in 8 major internal combustion engines remanufacturing enterprises in 6 cities in 5 provinces. According to Ge Hong, there are currently 3 types of internal combustion engine remanufacturing enterprises in China: manufacturer service providers, upgraded extensive repair enterprises, and industrial chain of manufacturing base. "Generally speaking, China's internal combustion engine remanufacturing industry possesses an excellent foundation for industrial development; remanufacturing enterprises have established numerous characteristic products and technologies and the recycling system is improving. Some production capacity has been established", said Ge Hong in conclusion of their survey.  


Nonetheless, some key technology standards still need to be improved, the industrial support system is incomplete, and industrial administration and polices need to be updated. These are some of the problems that are impeding the thriving development of the internal combustion engine remanufacturing industry. "Enterprises, in particular, should make continuous effort to improve technology system and standard system, enhance discipline, carry out stringent requirements, and promote the standardization of the remanufacturing market", appealed Ge Hong.


Remanufacturing of internal combustion engine possesses a very important position in the remanufacturing sector. It can reflect the development status of the entire industry. Currently, China possesses a remanufacturing capacity of an aggregate of 230,000 units of automobile engine, transmission, steering gear, and power generator. Besides, China's automatic nanometer particle recombination brushing electroplating, among other technologies, has reached international advanced standard.   


According to survey, friction and erosion cause about 10 percent of GDP loss in China every year. The number is 4 or 5 percent in developed countries. In face of the gigantic development space, many companies are, as Ge Hong describes, "rubbing their fists and wiping their palms and eager to start action". 


Pattern: Chinese characteristics possess advantages


It's necessary to have a clear understanding of the concept of remanufacturing before we can establish a remanufacturing pattern with Chinese characteristics. Professor Yi Xinqian, consultant and director of the expert commission of the Maintenance and Remanufacturing Division of China Construction Machinery Association, says that, take engineering machinery as an example, many companies are beginning to take action, but they don't have a very clear understanding of the concept of remanufacturing, frequently mixing the concept of remanufacturing with machinery repairing.


From the perspective of consumers, remanufacturing has not yet gained extensive recognition in society. A survey shows that only 10 percent of the people who are surveyed understand clearly the remanufacturing of car parts, and 45 percent know nothing about it, with many holding suspicious or even denying attitude towards remanufactured products. This somewhat reflects the public's lack of professional understanding of remanufacturing. "Only by making manufacturers and consumers correctly aware of remanufacturing can the development foundation for the remanufacturing industry be consolidated", said Yi Xinqian.


For remanufacturing companies, they also need to establish the idea of collaboration. "General parts of engineering machinery are manufactured by specialized enterprises. Therefore it is neither possible nor economic for a single enterprise to remanufacture whole engineering machine. Developing remanufacturing industrial cluster is a good option", said Yi Xinqian.


Presently, Wuhan has already established China's first remanufacturing base that features engineering machinery. It attracts companies of engineering machinery remanufacturing, parts and accessories production, and storage and logistics, forming an industrial cluster of engineering machinery remanufacturing.


Policy: thorough optimization centering on the industry


In 2008, the National Development and Reform Commission approved 14 enterprises, including Dongfeng Cummings and Weichai Power, to be the pilot companies of the car parts remanufacturing industry; in 2009, the Ministry of Industry and Information Technology designated 35 enterprises and industrial cluster regions to be the first pilots for the remanufacturing of electro-mechanical products; in 2010, 11 ministries and commissions, including the National Development and Reform Commission and the Ministry of Science and Technology, published the Opinions on Promoting the Development of the Remanufacturing Industry; in 2011, the Outline of the 12th Five-Year Plan passed by the National People's Congress listed the remanufacturing industry as one of the key projects of the recycling economy. In September 2011, the National Development and Reform Commission issued the Notice on Deepening Work of Remanufacturing Pilots, making it clear that the products category and pilot range will be further expanded, policy support will be enhanced, and the formulation of Remanufacturing Products Catalogue will be accelerated…


Currently, industrial associations are playing a vitally important communication role in promoting the development of the remanufacturing industry. Yi Xinqian points out that, on one hand, industrial associations introduce the government's policy and procedures about the development of the remanufacturing industry to enterprises, guiding them to choose the correct technology path and direction; on the other hand, industrial associations also help enterprises to seek help from universities, colleges, and research institutes regarding technology problems that enterprises come across, facilitating the integration of production, academy, and research.


"With support from every side, enterprises should also enhance their responsibility", said Yi Xinqian with sentiments, "Enterprises engaged in remanufacturing should have strong social responsibility, and have a firm grasp of the profound significance of this industry on the development of the economy and society".

 

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