Remanufacturing parts and components to open up "intestinal obstruction"

Once, in the roar of the shearing machine, a Taiwan car transmission that was dyed in oil by the engine oil was dismantled, flattened, and turned into a pile of scrap iron.

Today, this scene will change because of a policy adjustment.

On September 19, the Legal Affairs Office of the State Council issued the "Decision of the State Council on Amending the "Administrative Measures on the Retirement of Used Vehicles" (Consultation Draft)" (referred to as "Consultation Draft"). A highly anticipated policy adjustment appears in the draft of the draft: "Five Assemblies" as scrap metal, which can be sold to iron and steel companies as smelting raw materials, or in accordance with the State Council's end-of-life vehicle recycling authority in conjunction with the State Council's circular economy development The relevant regulations formulated by the management department shall be sold to the parts remanufacturing enterprises.

When the policy came out, it immediately attracted widespread attention. Industry professionals believe that the policy adjustment has broadened the old parts of remanufactured parts and components, which has opened the long term “intestinal obstruction” in the parts remanufacturing industry.

On September 21, Ge Hong, the deputy secretary-general of the China Internal Combustion Engine Industry Association, said in an interview with a reporter from China Automotive News: “I believe that the No. 307 document (ie, the “Administrative Measures for Retirement of Automobiles for Retirement,” or “Measures”) was released. Timely, this is the policy that is highly anticipated in the entire parts remanufacturing industry. After years of development, China's parts and components remanufacturing industry has laid a solid foundation, this time allowing scrapped cars 'five general assembly' to sell parts and components remanufacturing enterprises. It is 'timely rain', indicating that the spring of remanufacturing parts will come."

Weichai Remanufactured Engine

â–  "Five Assemblies" Mandatory scrap is an obstruction to the old source

Since the piloting of auto parts remanufacturing in 2008, over the past decade, the relevant national departments have successively introduced many policies to promote the development of parts remanufacturing, including the management of parts remanufacturing, the use of parts remanufacturing products, and Manufacturing products "old for another" pilot and so on.

On September 21, Liu Xinjing, deputy general manager of Marketing Center of Heavy Duty Trucks Industrial Co., Ltd. of Panjin, Liaoning, told reporters: “As a third-party manufacturing platform for remanufacturing parts and components, the sources of old parts and components are not the same as those of Yuchai and Weichai. Machine companies, they have their own recycling system, we mainly rely on social resources, such as individual users or maintenance companies. Previous methods did not allow the 'Five General Assembly' to sell, the old parts of the source blocked, the process of finding resources is very difficult."

The method here refers to the "Administrative Measures for the Retirement of Scrapped Vehicles" formulated in 2011, which is known by the industry as the No. 307 Document of the State Council. Article 14 of the Measures stipulates that dismantled "five major assemblies" (including the overall structure of automobile engines, steering engines, transmissions, front and rear axles, and frames) shall be used as scrap metal and sold to iron and steel enterprises as raw materials for smelting. In fact, in the “five major assemblies”, there are many old-value products that are high-value-added and can be reused for remanufacturing. However, all of them are recycled as scrap metal; some of the engines that meet the standards for scrapped accidents, parts and components Even new ones, but still can not escape the fate of dismantling smashing.

Although end-of-life vehicles are not the only source of old parts for parts remanufacturing, they have huge stocks and are an important source of raw materials for parts remanufacturing. This provision not only caused a great waste of resources, but also hindered the development of the parts remanufacturing industry. It was criticized by the industry.

"In the past two years, China's parts remanufacturing industry has been developing very well. Consumer awareness and recognition of remanufactured parts and components are increasing," said Xie Jianjun, secretary general of the Auto Parts Remanufacturing branch of the China Automobile Industry Association. The remanufactured parts are mainly for the after-sales market.Although the number of cars in China is very large, the average age of cars in use is relatively low, and there are many new cars. I think that after 5 years, the parts remanufacturing industry will usher in development. Golden period."

■ major positive third-party manufacturers to benefit large <br> <br> draft instructions that appear, allowing junk car "five assembly" sold to the remanufacturing business, in order to adapt to the development of circular economy needs. The Circular Economy Promotion Law provides regulations for state-sponsored enterprises to carry out remanufacturing of motor vehicle parts. Remanufacturing refers to the specialized repair of used parts and components to achieve the same quality and performance as the original new products, saving a lot of resources and energy. In order to implement the requirements of the Circular Economy Promotion Law and draw lessons from the practices of most developed countries, the draft of the Consultation allows the “Five General Assembly”s to be sold to remanufacturers in order to make the best use of them.

This is undoubtedly a major positive news for the parts remanufacturing industry. During the interview, both industry experts and remanufacturers expressed the same view. Policy adjustment will promote the remanufacturing industry of parts and components to take a big step forward.

Companies such as Yuchai, Weichai, and Dongfeng Cummins, who are responsible for the parts remanufacturing business, told the reporter that the remanufacturing industry's desired policy has finally come. The “Five Assemblies” stipulates that breaking ice will effectively broaden the sources of raw materials for remanufactured parts and components.

“In the past, remanufactured parts mainly came from internal recycling systems (such as Yuchai, Weichai, etc.) After the ban was lifted on the five major assemblies, the internal source system of the remanufactured parts was integrated with social resources, and the source channels of the old parts were integrated. More extensively, it can better promote the development of the parts remanufacturing industry.” Xing Min, executive vice chairman and secretary-general of the China Internal Combustion Engine Industry Association, said in this way.

According to Ge Hong, the third party remanufacturing companies that benefit most directly from this favorable policy are social resources as old sources. These companies will spring up like mushrooms. For remanufacturers such as Yuchai and Weichai, which have their own recycling channels, they can also better utilize the value of remanufactured factories and effectively develop a recycling economy.

Hopefully, the supporting measures and supervision system to keep up with the situation, Wang Yuehui, business manager of Fazel Machinery Co., Ltd., Changsha City, Hunan Province, told reporters: “For us, how to ensure that the old parts of the five assembly standards that meet the standards can be truly re- Recycling of manufacturing companies is our most concerned issue and the most realistic issue."

Xie Jianjun believes that such a policy adjustment made by the state is an affirmation and recognition of the remanufacturing of parts and components and can lead to the introduction of relevant policies for the remanufacturing of parts and components. At the same time, the draft of the consultation clearly specifies the implementation of relevant measures by the comprehensive management department of circular economy development, which is of great significance for the future long-term development of the parts and components remanufacturing industry. It is hoped that it will formally release and introduce supporting measures to promote the landing as soon as possible so that the remanufactured enterprises can be effectively implemented. Discounts and developments.

"The implementation of the policy requires a process of implementation, the next step, supporting policies, regulatory mechanisms, etc. must keep up to provide assurance for the implementation of the policy. At the same time, the state should also improve the tax policy, logistics system, third-party certification platform, etc., to ensure that the old Supply." Ge Hong emphasized that "the remanufacturing enterprises themselves should strengthen their self-discipline and increase their skills, talents, production, etc., 'Real remanufacturing, really remanufacturing'."

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