Scrap cars, good parts, scrap, recyclable, recyclable

The most important changes in the Regulations on Recycling and Dismantling of Motor Vehicles (Draft for Soliciting Opinions) (hereinafter referred to as “Draft for Soliciting Opinions”) are two of the most important changes. First, the entry barrier for dismantling enterprises of used cars has been raised; the second is the original The five major assemblies that the iron and steel enterprises should transfer to the smelting raw materials in the management measures shall be allowed to be handed over to the remanufacturing enterprises for manufacturing.

Although the "Consultation Draft" regulates the scrapped automobile recycling industry, the more important significance is that it has opened the prelude to China's promotion of the remanufacturing industry.

Government promotes remanufacturing industry

Before the “Draft for Soliciting Opinions” was issued, 11 ministries and commissions including the National Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Industry and Information Technology, the Ministry of Finance, the Ministry of Environmental Protection, and the Ministry of Commerce have jointly issued the “Opinions on Promoting the Development of Remanufacturing Industries”, proposing future remanufacturing in China. In the key areas of industrial development, we hope to deepen the pilot projects for the remanufacturing of auto parts.

Prior to this, in 2008, China had announced for the first time the “Administrative Measures for the Remanufacturing of Auto Parts Pilots” and identified 14 auto companies as pilot enterprises for remanufacturing, including China FAW, Jianghuai, and Chery. .

At the same time as the “Draft for Soliciting Opinions” was promulgated, the Measures for the Administration of Auto Parts Remanufacturing and the Catalogue for Remanufacturing Industries, led by the National Development and Reform Commission, were also formulated and cataloged in the same period. When subsequent related policies are implemented, the remanufacturing industry will enter a period of development under the vigorous promotion of the government. The revision of the "Administrative Measures for the Retirement of Used Vehicles" will be the prelude to this period of development, because the "Draft for Soliciting Comments" first solved a stumbling block on the remanufacturing of auto parts so that it would no longer be "absent". "The situation.

Remanufacturing Market Gains Foreign Investment

Although in 2008, China identified 14 companies as pilot companies for component remanufacturing, including three vehicle manufacturers. However, on July 28th, the reporter contacted Jianghuai and Chery. They wanted to know more about the remanufacturing of spare parts in the past two years and did not get a positive response from the other party.

In the eyes of people in the industry, this situation is normal, because if the current "retirement vehicle recycling management approach" these remanufactured pilot companies simply do not have "raw materials." Industry insider Hu Lixuan thinks that in the field of auto parts and components, China has such a regulation: scrapped auto recycling companies must dismantle scrapped cars for recycling, disassembled automobile engines, steering wheels, transmissions, front and rear axles, and frame frames. The assembly should be sold as scrap metal to steel enterprises as smelting raw materials. This means that scrapped cars, which are one of the largest raw material sources for the remanufacturing industry, have been blocked by policy - although the original intention of the policy was to regulate the market.

In addition to the three vehicle manufacturers, they also include some parts and components manufacturers such as Weichai, Yuchai, and CNHTC Jinan Fuqiang Power. Jinan Fuqiang Power has been engaged in and promoted the reengineering of the engine, but its main source of supply comes from the maintenance market of China National Heavy Duty Truck. For heavy-duty engines that enter the overhaul or overhaul status, the best price for the user to replace the high quality, standards Remanufactured the engine and provided the same three pack service as the new engine.

Although China's remanufacturing industry has not yet been vigorously developed, its huge market has attracted the attention of foreign companies. Among the pilot companies, Sinotruk Jinan Fuqiang Power is a joint venture between Sinotruk Group and a British company, and Caterpillar’s ​​subsidiary Caterpillar (China) Investment Co., Ltd. is a joint venture with Yuchai, a pilot company. A company that provides remanufacturing services for Yuchai diesel engines and components and parts of Caterpillar diesel engines and components. Dongfeng Cummins also signed a cooperation agreement with Cummins of the United States on remanufacturing projects earlier.

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