Remanufacturing: The spring of the borrowing policy is about to realize the profit?

Yang Chunping, director of the Research Center for Circular Economy of the Institute of Economic System and Management, said that the "12th Five-Year Plan for the Development of Circular Economy in the Country" will be announced soon. By 2020, the environmental protection industry will become the pillar industry of China's national economy. And *** Not long ago, the Ministry of Industry and Information Technology announced the second batch of remanufactured products catalogue, including Sany Heavy Industry, Caterpillar, Wuhan Maxima and other six companies in the four categories of 35 products. It can be seen that the energy conservation and emission reduction business has risen to the strategic height of the ***, and these enterprises entering the catalogue will be expected to obtain policy support in terms of taxation and credit, thus accelerating the pace of the remanufacturing industry.

Remanufacturing refers to the mass production process of professionally repairing used auto parts, engineering machinery, machine tools, etc. Compared with manufacturing new products, remanufacturing can save energy by 60% and 70% of materials, in addition to performance. The cost is 50%, almost no solid waste is generated, and the emission of atmospheric pollutants is reduced by more than 80%. Therefore, remanufacturing can not only obtain good economic benefits, but also obtain immeasurable environmental and social benefits.

According to the China Construction Machinery Business Network reporter, the current global remanufacturing value exceeds 100 billion US dollars, about 75% from the United States, of which remanufacturing in the automotive and construction machinery sector accounts for more than 2/3; as the world's largest construction machinery market, China's 14 major types of construction machinery have a total of 2.9 million units, and nearly 80% of in-service construction machinery is about to exceed its shelf life. If these equipments are put into remanufacturing, they will at least generate a market size of 10 billion US dollars.

Despite the huge market space, Chinese companies entered the remanufacturing field as early as 1995. However, due to various reasons, the initial investment has not been converted into economic benefits, and remanufacturing has become a “looking beautiful”. In the new industry, development has lagged behind the rapid growth of industrial manufacturing.

Chinese-style puzzles of remanufacturing

Since 2010, leading enterprises in China's construction machinery industry, such as Sany Heavy Industry, Xugong, Liugong, etc., as pilot enterprises of mechanical and electrical products re-manufacturing approved by the Ministry of Industry and Information Technology, have increased investment in the field of engineering machinery remanufacturing. However, due to the restrictions of relevant regulations and market maturity, most companies are still in the exploration stage.

Recycling of used parts is a top priority for remanufacturing companies. According to Article 14 of the State Council Decree No. 307, promulgated in June 2001 and still in use today: “The scrapped cars recovered by scrapped automobile recycling enterprises, the five major assemblies (automobile engines, steering gears, transmissions, front and rear axles, frames) It should be sold as scrap metal to steel companies as a raw material for smelting. This order makes remanufacturing companies only able to acquire old parts from fixed users or auto repair markets as remanufactured raw materials, far from meeting production and market demand. In addition, in the China Customs Import and Export Regulations, there are only regulations on the management of new products and waste products. There is no corresponding clause for the “old pieces” between the two. There are even many people who limit the import of old equipment to prevent the foreign countries from being imported. Garbage enters China, and as a result, the possibility of “remanufacturing” companies gaining blood and growing is being smothered at the source.