Remanufacturing: Why does a win-win industry develop poorly?

Although the remanufacturing industry has been designated as an emerging industry, unlike the enthusiasm encountered in new energy and new materials, more remanufacturing companies are not well-recognized due to low social awareness, poor recycling of old materials, and inadequate implementation of industrial policies. For other reasons, I saw the prospect of development, but faced the real dilemma that stopped at the moment.

"Our products are 'remanufacturing', but consumers still mistakenly think that we are doing repairs and renovations." Zhang, a person in charge of remanufacturing of electromechanical equipment, told the reporter.

What worries Zhang manager is that he often encounters the question: Can the quality of remanufactured products be guaranteed? “And consumers are often holding the “new better than the old” consumption habits, and they have concerns when choosing to remanufacture products,” said Zhang.

Manager Zhang’s distress is not a case of re-manufacturing. Although the remanufacturing industry has been designated as an emerging industry, unlike the enthusiasm encountered in new energy and new materials, more remanufacturing companies have seen the prospects for development, but have stopped at the current realities.

Win-win industry

"China has entered the peak period of scrapping of mechanical equipment and household appliances. According to our preliminary statistics, more than 2 million traditional old machine tools have been used in the country for more than 10 years. 25% of construction machinery is overtime, and about 5 million scrapped cars are scrapped. This number is still relatively conservative." At the recent 6th Asian Manufacturing Forum Annual Meeting, Wuhan Qianlima Construction Machinery Group Co., Ltd. representative Liu Binzhou made such a statement.

Taking engineering machinery as an example, Liu Binzhou revealed that the construction machinery has about 5 million units, including 1.2 million excavators. If it is 5% of annual scrap, it is about 60,000 units. "If we do not take effective measures to deal with it, it can only be a pile of scrap iron, handed over to the scrap iron purchase station, and then handed over to the steel mill. In fact, there is still a lot of surplus value wasted in it." Liu Binzhou Sorry to say.

In Liu Binzhou's view, some mechanical equipment will cause serious problems if it is overtime, such as environmental pollution, such as excessive consumption of fuel, causing leakage and safety hazards. "But direct scrapping has caused a lot of resources and labor losses. This is the urgency of developing remanufacturing." Liu Binzhou said.

In the view of Yang Chunping, one of the drafters of the National Twelfth Five-Year Development Plan of the National Circular Economy and Director of the Circular Economy Research Center of the Macroeconomic Research Institute of the National Development and Reform Commission, remanufacturing is one of the important contents of the development of circular economy. Remanufacturing one device can save 50% of the cost, save 70% of the material, and save 60% of energy compared to the new one.

Taking machine tools as an example, according to statistics, there are currently about 8 million machine tools in China. According to the international 3% elimination rate, nearly 240,000 machine tools enter the elimination process every year, accounting for about half of the domestic production of new machine tools. If the castings such as the bed and column of the used machine tool are fully utilized and repaired and repaired, 70% of the cost can be saved, thereby achieving cycle production.

According to data released by the National Bureau of Statistics recently, at the end of 2010, the number of civilian vehicles in the country reached 90.86 million, of which private car ownership was 65.39 million. Calculated by about 2 million vehicles scrapped each year, this is another “gold mine” that needs to be developed.

Seeing the prospects stop at the front

“There are two key points in the success of the remanufacturing business. The first is that the old engine can come back, and the resources for remanufacturing are available. The second is that it can be sold. To do this, two platforms are to be built, one is the sale of the product. The platform, the other is the recycling platform," said Li Feng, general manager of Weichai Power Remanufacturing Company.

Liu Binzhou also agrees with this. "The first dilemma in the current re-manufacturing industry is that old pieces cannot be recovered. The second dilemma is that there is no way to sell them. The entire industrial chain has not been properly cycled." Liu Binzhou said.

A big reason why old pieces cannot be returned is because China has not yet opened a free market for auto parts and spare parts. It is very difficult for formal remanufacturing companies to obtain old parts. They can only buy some old parts from fixed users or auto repair market. As a raw material for remanufacturing, it is far from meeting the needs of production and market.

In Liu Binzhou's view, the current society's awareness of remanufacturing products is still relatively low, and many customers believe that remanufacturing products are simply refurbishment. "We must dispel this misunderstanding. Remanufacturing products not only meet or exceed new products, but also provide after-sales service and quality assurance as new products." Liu Binzhou said.

“The concept of 'remanufacturing' is very hot in the industry, but outside the industry, the client’s understanding of remanufacturing is still at a very early stage and requires a long transition.” Cummins Remanufacturing General Manager Yan Jingjing said.

Yan Jingjing told reporters that for European and American countries, the price of remanufactured products is basically 70% of the price of new parts, of which old parts account for 30%. However, in China, in general, everyone thinks that remanufactured products are worth only 50% of new products. There is a huge gap between them.

It is understood that in the developed markets, the remanufacturing service industry has become an important industry, extending to almost all areas such as automobiles, electromechanical equipment, national defense equipment, metallurgical equipment, and mining equipment. It is conservatively estimated that the current global remanufacturing service industry has an annual output value of more than 140 billion US dollars.

In Liu Binzhou's view, the current development time of China's remanufacturing industry is relatively short, the batch size is relatively small, and the economy has not yet reached the scale of the economy. The cost will be relatively high. Although there are considerable economic benefits, it has not yet reached the ideal situation.

"On the other hand, we still need to implement industrial policies." Liu Binzhou said that although the state has introduced some circular economy promotion laws and related policies, including the report of the 18th National Congress, how to develop the remanufacturing industry, but specific The operational level of the policy has not yet been put in place, and the development of the remanufacturing industry needs to have a good development environment.

For example, in the case of taxation, it is generally difficult to obtain an input tax invoice for the purchase of old parts. Without an invoice, there is no way to offset the input tax, which results in an increase in the cost of remanufactured products.
"We hope that the state will give us more tax and financial subsidies, or subsidize them to our enterprises, or directly subsidize them to consumers." Luo Jianming, manager of remanufacturing department of Jinan Fuqiang Power Co., Ltd. said.

Sustainable development and remanufacturing

The reporter learned that the National Development and Reform Commission and other departments have vigorously promoted the remanufacturing industry in recent years. In May 2010, the 11th National Committee of the National Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Industry and Information Technology, and the Ministry of Finance jointly issued the "Opinions on Promoting the Development of Remanufacturing Industry." In September 2011, the General Office of the National Development and Reform Commission issued the "Notice on Deepening Remanufacturing Pilot Work", stating that in order to further explore the remanufacturing development path suited to the national conditions, the state decided to expand the scope of remanufacturing pilots and continue to explore the policy of remanufacturing industry development. , management system and supervision system, provide experience for establishing relevant technical standards for remanufacturing, market access conditions, and circulation supervision system.

At present, China's remanufacturing industry is still concentrated in two major categories of auto parts and electromechanical products. According to relevant plans, in 2015, China's remanufacturing enterprises will increase to more than 100, and the remanufactured varieties will gradually increase.

Regarding how to promote the development of remanufacturing, Liu Binzhou suggested that in the short run, the remanufacturing pilot enterprises can do the assembly first, then do the whole machine, make the accessories first, and then assemble. "At present, it is impossible to remanufacture every part. We must choose a higher value and a larger batch. If the product is not well chosen, it will be unbearable in terms of economy." Liu Binzhou said.

Liu Binzhou also suggested strengthening cooperation and technological innovation. In his view, Europe, the United States and Japan have developed in the field of remanufacturing for decades. They have very good experience. We should seek international cooperation so that we can rapidly develop the field of remanufacturing. Technological innovation is an eternal theme for every enterprise. Without innovation, it will be eliminated by this society. We are also actively working and exploring in this regard.

"What we are doing now is the pioneer of the industry. We are also willing to be the one who eats crabs in this industry." Yan Jingjing said. In the view of Jing Jingjing, at the present stage in China, the protection of intellectual property rights is a very favorable guarantee for promoting remanufactured products. It is hoped that it can fully combat counterfeit and shoddy products and help remanufacturing enterprises to enhance their competitiveness in the market.

In the opinion of many industry experts, the state should formulate technical standards and industry standards for remanufacturing products as soon as possible, clearly defining the product's effect and longevity, so that users do not have to worry about quality when purchasing remanufactured products. At the same time, the corresponding tax reduction policy should be introduced as soon as possible, on the one hand to encourage re-manufacturing enterprises to develop vigorously, on the other hand to encourage market consumption to re-manufacture products.

Palm Oil Mass Flow Meter

Zhejiang Sealand Technology Co., Ltd. is a trustworthy manufacturer of Palm Oil Mass Flow Meter, Palm Oil Mass Flowmeter, Palm Oil Coriolis Mass Flow Meter, Palm Oil Coriolis Mass Flowmeter, Palm Oil Flow Meter, ATEX, IECEx & CE approved.

With its high accuracy, wide rangeability and reliable performance, Sealand meter has been applied in many kinds of industries during the last 8 years. Unlike others who only focus on the measurement of liquid at normal pressure & temperature, Sealand has conquered the difficulty in the measurement under severe conditions, such as high pressure, high viscosity, high & low temperature.

Besides, Sealand lab is
1. Controlled completely by automatic system, to minimize personal error.
2. Equipped with 3 METTLER TOLEDO scales with accuracy 0.014%.
3. Device extended uncertainty: 0.05%.
4. Certified by Zhejiang Institute of Metrology which is authorized by ILAC; Sealand meters are also approved by them after test in their lab with ISO/IEC 17025:2005 standard.

Palm Oil Mass Flow Meter, Palm Oil Mass Flowmeter, Palm Oil Coriolis Mass Flow Meter, Palm Oil Coriolis Mass Flowmeter, Palm Oil Flow Meter

Zhejiang Sealand Technology Co., Ltd. , https://www.sealandflowmeters.com