At the 2014 China International Exhibition on Internal Combustion Engines and Technology Equipment Re-manufacturing held recently, the audience found that transportation, construction machinery, and national defense equipment were among the various industries related to the national economy and the people's livelihood. Internal combustion engines were the dominant driving force. The failed internal combustion engine will be re-manufactured, and the indexes will not be lower than the original machine standard. The remanufacturing of the internal combustion engine represents the direction of the green cycle and has formed a huge industry. According to the “Recommissioning Plan for Internal Combustion Engines” issued by the Ministry of Industry and Information Technology, at the end of the “Twelfth Five-Year Plan”, China’s internal combustion engine remanufacturing industry will reach a scale of 30 billion yuan.

"Currently, China has become a major manufacturer of internal combustion engines. During the "Eleventh Five-Year Plan" period, the annual average production growth is about 10%, and the cumulative output is about 300 million units. It is expected that the output of the "12th Five-Year Plan" will exceed 400 million units." Energy Saving and Synthesis of the Ministry of Industry and Information Technology The Director of the Division, Gao Yunhu, revealed that it will actively promote the value-added tax (VAT) policy for certified remanufactured products, and include the enterprises engaged in the production of remanufactured internal combustion engines as soon as possible in order to promote the internal combustion engine. Manufacturing accelerates development.

Energy conservation is obvious

At the remanufacturing exhibition of internal combustion engines, Li Feng, general manager of Weichai Power Remanufacturing Co., Ltd., calculated this account: Weichai Power currently has about 3.7 million units of internal combustion engine market, which is remanufactured according to the experience of foreign remanufacturers. The output of the engine is generally 2% to 5% of the engine's social possession. Calculated at 2%, the theoretical annual output of the Weichai remanufactured engine is about 74,000 units, which can create an added value of 2.664 billion yuan in recycling, which can save electricity 107.3 billion yuan. Kilowatt-hours, the scale of the industrial market is huge, and the economic benefits are obvious.

"According to the domestic and foreign experience in the remanufacturing industry, there is a large amount of internal combustion engine products and a high added value for remanufacturing, and it is appropriate to implement large-scale remanufacturing." Ge Hong, deputy secretary general of China Internal Combustion Engine Industry Association, told this reporter.

According to statistics, in 2013, the output of internal combustion engines in China reached 80 million units, and the total social ownership was about 380 million units. Gao Yunhu pointed out that according to the calculation of the internal combustion engine overhaul and scrapping cycle, the stock of old and used internal combustion engines that can be used for remanufacturing in China is huge. With reference to the relatively mature foreign remanufacturing market, China's internal combustion engine remanufacturing industry has great potential for development.

According to estimates, there are more than 30 kinds of remanufactured products related to internal combustion engines. Major components such as cylinder blocks, cylinder heads and other key components of failed internal combustion engines and superchargers, generators, etc., are mostly local failures. The key technologies for remanufacturing such as forming and repair can be used without changing the shape and material of the main body. Restore its size, accuracy and performance. Compared with the traditional waste metal recycling and disposal methods, remanufacturing can recover about 70% of the added value of the failed products. Compared with the original manufacturing, remanufacturing can save 80% of energy consumption, save more than 70% of materials, and reduce manufacturing. Costs range from 30% to 50% and can also increase jobs by 3 to 5 times.

The rapid development of remanufacturing industry, as a unique emerging industry, has become an important part of the manufacturing and service industries. Gao Yunhu said that with the rapid growth of China's internal combustion engine production and holdings, the foundation and technical conditions for remanufacturing resources are also maturing. Promoting the development of remanufacturing in the internal combustion engine industry will help promote energy conservation and emission reduction, foster new economic growth points, accelerate the development of recycling economy and build a resource-conserving and environment-friendly society.

Countercurrent recovery is the most difficult

Asked about the difficulties in the remanufacturing of internal combustion engines, Yao Wen, general manager of Liugong Remanufacturing Company, recalled that it was difficult to recover old parts. In the absence of old parts, sales of new parts at the price of remanufactured products will inevitably lead to losses, and will also lose the significance of remanufacturing. Having high quality old parts means profit.

"Reverse logistics is the biggest problem we are currently facing." Ge Hong admitted. Old parts are the raw materials of remanufacturers. Without raw materials, they cannot be developed. However, at present, formal enterprises are not flexible in terms of logistics, and some unqualified SMEs re-enter the market after refurbishing the recycled parts and components, which has adversely affected the industry. The state requires that the quality and shelf life of remanufactured products be equal to or exceed the prototype products, which requires the standardization of production, quality management, and inspection and inspection of remanufactured products. “At the initial stage of development of the remanufacturing industry, it is necessary to establish a market access mechanism and establish a market supervision system for the remanufacturing industry that is in line with Chinese characteristics.” Ge Hong said that foreign experience can also be used to further promote industry self-regulation and regulate the market.

Not only that, "they have to be sold out." Li Feng said that Weichai usually buys the internal combustion engine at a two-fold price and sells it at a price of 25 percent. However, the recognition of customers on the market is not enough. Everyone thinks that the remanufactured machine is repaired, the quality is not good, and the market demand is not enough. Obviously, there is still a lack of understanding of the remanufacturing industry in China, and consumer habits have not been formed. There are many concerns about the use of remanufactured products. Therefore, it is imperative to encourage and guide the consumption of remanufactured products and strengthen the promotion and guidance of remanufactured products for internal combustion engines.

Repair technology is the key to distinguishing the remanufacturing industry from other maintenance industries, but initial investment in various repair technologies requires large amounts of capital. At this stage, the profit rate in the remanufacturing industry is too low, and most companies are in a state of support or loss. Ge Hong said that the government should expand the scope of subsidy for "old-for-new" and financially also need to increase support to guide and encourage low-interest credit or interest-free funds into the remanufacturing industry. She also suggested that the government should introduce a VAT rebate policy for the remanufacturing enterprises' circulation, and gradually restore value-added tax according to the development status of remanufacturers.

Solve the "cold and hot" contradiction

With regard to the status quo of the remanufacturing market for internal combustion engines, many companies have agreed to report to reporters that there is a contradiction between the “cold” market recognition and the “hot” state policy call. Market recognition and market demand still need to be cultivated vigorously.

In this regard, Gao Yunhu disclosed that it will expand the remanufactured product market, accelerate the recognition of remanufactured products, and issue a “remanufactured product catalog” to guide consumers to purchase and use remanufactured products. It also promoted the introduction of fiscal, taxation, and trade policies that are conducive to the development of the remanufacturing industry, and actively promoted preferential VAT policies for certified remanufactured products to encourage the export of remanufactured products. At the same time, coordination will promote the expansion of the “old-for-for-new” policy coverage and will include the enterprises engaged in the production of internal combustion engine remanufactured products within the scope of policy support as soon as possible.

According to the “Recommissioning Plan for Internal Combustion Engines” issued by the Ministry of Industry and Information Technology, at the end of the “Twelfth Five-Year Plan”, the remanufacturing production capacity, enterprise scale, and technical equipment level of the internal combustion engine industry will be significantly improved, and a standardized system for the remanufacturing of internal combustion engines will be preliminarily established and the old ones will be met. Reverse logistics system. In order to achieve this goal, Gao Yunhu said that it will give full play to the organization and coordination role of industry associations, increase the intensity of research and development of internal combustion engine re-manufacturing technology, speed up the promotion of demonstration and promotion project construction, product identification, and standard setting, and build a platform for production, study, and research exchanges. Promote industrial chain cooperation. The next step extends to the remanufacturing industry chain, and remanufacturing of parts and components is driven by the remanufacturing of the entire engine.

According to reports, in May this year, the internal combustion engine remanufacturing industry alliance was established. Currently, there are 53 member units, and the internal combustion engine remanufacturing industry will enter a stage of rapid development. In addition, 22 related standards such as “Remanufacturing General Technical Conditions for Non-road Internal Combustion Engines” have been established and are under preparation.

Ge Hong said that it is necessary to continue to promote the construction of the entire engine and key parts and components, key components and parts remanufacturing demonstration process, high-efficiency clean and upgraded internal combustion engine demonstration project, remanufacturing technology and equipment upgrade engineering and remanufacturing reverse logistics system demonstration project construction. . The establishment of a public information and service platform for the remanufacturing of internal combustion engines will smooth the circulation of information on old parts of internal combustion engines and remanufactured products, and promote the trading of used and remanufactured products.

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