Automotive parts "remanufacturing" usher in business opportunities

At the two conferences this year, some delegates proposed a “remanufacturing” proposal in response to a shortage of resources. They believe that the current global resources are scarce and there have been signs of energy shortages, steel shortages, ore shortages, compared with the costly processing of raw materials. Remanufacturing has many advantages: From a cost perspective, the cost of remanufactured products is only half that of prototype products; at the same time, remanufactured products can save 70% of materials and achieve energy savings of 60%. Therefore, "remanufacturing" becomes the best way to cope with the shortage of resources.

As a large domestic steel demander, specific to the automotive industry, China's annual scrapped vehicles is about 2 million vehicles, but the recycling of end-of-life vehicle products is also a sunrise industry, and the potential for the development of auto parts remanufacturing is very large. 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. At present, the international giants have been unable to hold back and must stride into the market that has just started.

The green manufacturing behind the "remanufacturing" model is the new direction for the future development of China's auto industry. From the recycling of cars to the reproduction of all aspects of full harmony with the environment, and through the realization of scientific and technological innovation to achieve environmental protection and energy conservation, the concept of green manufacturing through the entire automotive manufacturing process, making "remanufacturing" has an important strategic significance. At present, domestic research projects have been carried out in the field of automotive components, and it is said that the research results can be widely applied in many fields in the future.

It is understood that some foreign industrial giants are now involved in China's "remanufacturing" field. For example, Caterpillar has established a joint venture subsidiary in the country, specializing in remanufacturing services for diesel engines and components. However, according to the authoritative organization's forecast, China's current "remanufacturing" market is not large. The annual scale is about 10 billion US dollars, which is much smaller than that of an international parts giant. Therefore, for many auto parts companies, the “remanufacturing” sector is not just a way to save costs, but also a way to reduce business pressure, and it is a source of profit for corporate development.

However, the emergence of new areas will also be accompanied by a series of problems. According to some experts, a considerable number of people in the society still lack the necessary knowledge and understanding of the performance, effectiveness, and after-sales service of "remanufacturing" products. In addition, the country has not yet established a uniform quality standard for "remanufacturing" products, causing users to worry about whether or not to use "remanufacturing" products, waiting for a wait and see, and low recognition. In this way, the status quo when the social vehicles were scrapped over the years can only be sold to local scrap car dismantling enterprises. This also fundamentally leads to a single source of "raw materials" for remanufacturers, limited access to appropriate resources, and many available resources cannot be recycled in a timely manner, resulting in serious waste of social resources.

Although there are such difficulties in the “remanufacturing” field, the prospects of the industry are generally favored by professionals. Xu Binshi, director of the National Defense Key Laboratory of Equipment Remanufacturing Technology of the Chinese Academy of Engineering and the Academy of Armored Personnel Engineering, stated that as China enters the peak period of scrapping of mechanical equipment and household appliances, the advantages of the remanufacturing industry in terms of society, resources, and environmental benefits are determined. Remanufacturing is imperative. For the start-up China remanufacturing industry, there is great potential.

It is understood that as early as 2005, the size of the US remanufacturing industry has reached 75 billion U.S. dollars, of which automobiles and construction machinery remanufactures account for more than two-thirds of the total output value.