Remanufacturing is still a very strange word for the general public. However, in foreign countries, its development has been more than half a century. In recent years, especially since the party’s 18th National Congress, relevant departments have intensified their efforts to promote the development of the remanufacturing industry as China has increasingly attached importance to energy conservation and environmental protection and building beautiful China. Among these, diesel engines have become one of the key areas for remanufacturing. Cummins, Weichai Power and others have carried out related businesses. For this new life with huge potential for development, the society's incomprehension, recovery, and sales difficulties make it difficult for a short time to develop into a pallid trend. At the 6th Asian Manufacturing Forum held recently, domestic pioneers of remanufacturing called for the community to strengthen their understanding of remanufacturing, especially diesel engine remanufacturing, and give more support to the remanufacturing industry and enterprises for the development of remanufacturing. The road is getting wider and wider.
Remanufacturing is not a simple renovation
What is remanufacturing? In the "Opinions on Promoting the Development of Remanufacturing Industries" issued jointly by the National Development and Reform Commission, the Ministry of Industry and Information Technology and other ministries and commissions, there is a clear definition of remanufacturing, that is, the professionalization of used auto parts, construction machinery, machine tools, etc. The repaired mass production process remanufactured products achieve the same quality and performance as the original new product. Remanufacturing is a high-level form of recycling economy. The "Opinions" require deepening the remanufacturing of auto parts and engineering machinery such as ships and machine tools as key areas for remanufacturing.
Although as early as 2005, approved by the State Council, the country’s first batch of circular economy pilots will focus on remanufacturing. However, the development of remanufacturing is not smooth. The biggest problem encountered by remanufacturers is that the concept of remanufacturing has not been widely recognized by consumers and society. Products are often mistakenly refurbished by consumers and their quality is not assured. Cummins remanufacturing company general manager Jin Jingjing said: “In the industry, we often laugh at ourselves. We are all tattered.†For many people confusing remanufacturing with ordinary repairs, Jin Jingjing emphasized that remanufacturing needs 100% dismantling. , 100% testing, all 100% of the damaged parts are updated, and use repair technology to repair all parts. Repairs may simply replace individual damaged parts that need to be replaced. He also pointed out that remanufacturing is also manufacturing. The difference between it and ordinary manufacturing lies in the fact that more remanufacturing designs should be added; at the same time, there is a recycling logistics platform at the back end.
Ministry of Industry and Information Technology's circular economy pilot unit, mechanical recycling and sales agent - Yang Yihua of Wuhan Maxima Construction Machinery Co., Ltd. deeply feel that: "Our entire society has a relatively low awareness of remanufactured products, and many customers now believe that remanufactured products It is a simple remake, we must eliminate this misunderstanding.The remanufactured product not only meets or exceeds the new product quality, but also provides the same after-sales service and warranty as the new product.We give every customer exactly according to the new machine model. Provide services, so customers can rest assured when purchasing remanufactured products."
Since there are many misunderstandings, why do we have to vigorously develop remanufacturing? Several experts agreed that resources and materials can be recycled and reused. Yang Yihua introduced that China has now entered the peak period of mechanical equipment and household appliances scrapping. According to rough statistics, over 10 million traditional old machine tools in the country have exceeded 2 million units, 25% of construction machinery are in overdue service, and annual scraps are about 500. 10,000 cars. If we do not take effective measures to deal with, these directly scrapped equipment can only be a pile of scrap iron, and many of the surplus value will be wasted. This is a pity for the entire society, especially for China, which has poor energy and resources. Moreover, if the product is out of service, it will also have negative effects such as environmental pollution and high energy consumption. Remanufacturing meets the goal of building a resource-saving and environment-friendly environment and has become an important part of China's circular economy. Remanufacturing remanufacturing not only saves resources and personnel, but also has the effect of protecting the environment. This is a kind of society. Great wealth.
The National Development and Reform Commission (NDRC) has estimated that compared with manufacturing new products, remanufacturing can save energy by 60%, save materials by 70%, save costs by 50%, generate almost no solid waste, and reduce the emission of atmospheric pollutants by more than 80%. It is beneficial to form a circular economy model of "resources-products-waste products-remanufacturing products". It can be seen that remanufacturing can create considerable economic, ecological and environmental benefits. In addition, with the development of the remanufacturing industry, some employment problems can be solved. In 2005, the number of employees in the US remanufacturing industry reached 1.5 million. The current global remanufacturing output value exceeds 100 billion U.S. dollars, 75% from the United States. The same is true of diesel engine remanufacturing. Remanufactured 5% of engine components in Cummins engines, and its annual sales in remanufacturing can reach $918 million.
Remanufacturing must build recycling sales platform
Remanufacturing has just started in China. For the few remanufacturers in the country, especially diesel engines, the key to their success is. According to Li Feng, general manager of Weichai Power Remanufacturing Company, the first is that the old engine can be recycled and the remanufactured resources are available; the second is the remanufactured products sold. To this end, they have been trying to build two platforms, namely the product recycling platform and sales platform.
According to reports, Weichai Power Remanufacturing Corporation was established in April 2008. It is a wholly-owned subsidiary of Weichai Power Co., Ltd. It currently employs 256 people and has a total investment of nearly 300 million yuan. It is approved by the National Development and Reform Commission for approval. A company specialized in the remanufacturing of engines and their parts. The process of engine remanufacturing is mainly to recover the machine first, and then to dismantle the cleaning, dismantling, testing, and painting, and then re-equip, test, and decompose after the standard of qualified parts is achieved through some processing and repair. During the dismantling and repairing process, some parts are directly disposed of, and other parts are upgraded with the features of the latest products during the assembly process. Currently, Weichai Remanufacturing has established a 14-ton dismantling line. Its remanufactured products are mainly products that Weichai Power has put on more than 3.2 million units in the market, covering commercial vehicles, shipbuilding, agricultural machinery, passenger cars and other fields.
In order to ensure the recycling of old machines, Weichai Remanufacturing Company has established a recycling logistics platform. The platform is divided into three levels of management, the company - recycling center - agents. Weichai remanufacturing has set up a number of recycling centers around the country, and 4,700 dealers have recovered old engines from users, handed them to recycling centers, and then handed them to Weichai for recycling. Li Feng thinks that the recycling center is very critical. It is necessary to recover enough old parts and ensure the quality of the recovered products. The agents are also very important. The products are sold by the agents to the customers. When the products are scrapped, they are also recycled by the agents. Agents set up key bridges and links between manufacturers and users, making it possible for remanufacturing cycle models.
Summarizing his own practical experience, Li Feng emphasized that the successful remanufacturing business model should include several aspects. First, there must be a large amount of retention, which is the basis for the success of the remanufacturing business. The second is to have a high added value. Too cheap things are less successful. The third is a sound network system that can recycle old products and provide services for remanufactured products. The fourth is a win-win marketing model for the industrial chain. We must provide customers with high-quality products, add value to customers, and provide product life cycle services. At the same time, manufacturers and agents can profit appropriately. If these can be done, remanufacturing can succeed. It is worth noting that remanufactured diesel engine products mainly consist of diesel engines. Marine diesel engines have a small amount of discarded materials, and the locations for maintenance and dismantling are scattered, and it is difficult to establish spare parts recovery channels. Remanufacturing is still at an exploratory stage.
Cummins remanufacturing general manager Jin Jingjing also agreed that recycling logistics is the lifeline of remanufacturing. He introduced that Cummins has a global distribution center for parts distribution in Shanghai. The important function is the recycling of old parts. In China, it is estimated that 10 regional logistics centers will be completed by the end of 2014 and Shenyang, Beijing and Shanghai have now been established. Cummins achieves the highest recovery rate by covering more than 200 distributor service networks throughout China. Cummins also attaches great importance to the construction of decomposition centers and production bases, and is building a decomposition center in Xiangyang. After the decomposing center was completed, all old parts passed the production line, and the parts that could be produced were dismantled and disassembled. Since 2008, Cummins has established a localized Chinese production base in Xiangyang, which is now mainly engaged in the production of medium-horsepower engine parts remanufacturing business. In addition to manufacturing basic steel, crankshaft, and connecting rod basic structural components, peripheral components are also manufactured. With the continuous changes in market demand, Cummins has continuously introduced new technologies and increased product lines. Its annual engine remanufacturing capacity in China has exceeded 30,000 units.
Remanufacturing requires awareness and support
It is understood that in the developed country market, the remanufacturing service industry has become an important industry, and it has almost expanded into all fields such as automobiles, electromechanical equipment, defense equipment, metallurgical equipment, and mining equipment. It is conservatively estimated that the current annual value of the global remanufacturing service industry has exceeded US$140 billion. Relevant experts predict that according to Carter's theory, the future scale of China's remanufacturing industry will reach 10 billion US dollars per year. This is a gold mine, but there is still a long way to go to make it a real gold.
First of all, we must strive to raise the awareness of society. Yang Yihua appealed to industry participants to introduce the remanufacturing industry through various occasions, promote the remanufacturing industry, and let everyone accept the remanufactured products. Jing Jingjing very much agrees with this. He said that Cummins has encountered some new challenges in developing diesel remanufacturing in China. From the perspective of the world, especially European and American countries, the remanufacturing price is basically 70% of the new or new engine price, of which the old ones account for 30%. However, from the perspective of customer acceptance in the Chinese market, it is generally believed that the value of remanufactured products is only 50% of new products, which greatly reduces the profitability of remanufacturers and also affects the investment of remanufacturers. This may also be caused by the user’s inadequacy of understanding of the concept of remanufacturing. Outside the remanufacturing industry, customers' understanding of remanufacturing is still at a very preliminary stage. "Everyone must promote it with one mind and let end users accept the concept of remanufacturing. Allowing users to accept, bring benefits to users, and bring convenience, this is the key for users to pay you." Jing Jingjing said.
The second is to hope that the government will introduce specific policies to support it. Due to the shorter development time and smaller product volume, domestic remanufactured products cost more. Although the state has introduced some policies to promote the development of recycling economy, it lacks specific measures. Yang Yihua hopes to introduce related measures as soon as possible, such as giving more taxes and financial subsidies to the remanufacturing industry, creating a good development environment for the remanufacturing industry.
In addition, some experts believe that China's remanufacturing should choose the right development strategy. In the short term, remanufactured pilot companies can make accessories first and then complete the whole machine. It is not possible to remanufacture every part. We must choose a relatively high value and a relatively large batch. At the same time, the remanufacturing industry must innovate in business models. After several decades of development, the European, American and Japanese remanufacturing industries have accumulated a lot of very good experience. We can quickly increase the level of the remanufacturing industry through international cooperation and strive to explore new models suitable for the development of China's remanufacturing industry.
In terms of business model innovation, Jing Jingjing emphasized that there is a big difference between remanufactured products and new products. After all, remanufactured products are products several years ago. There are two options for remanufacturing. The first one is remanufacturing in the original product state, and the second one realizes product upgrading in the remanufacturing process. At present, 70% of Weichai's remanufactured products are the second products. With the gradual increase in emission requirements, he felt that diesel engine remanufacturing could also take some technical upgrading measures. For example, the current market demand for oil to gas is very large. Diesel engine companies can convert past diesel engines into gas engines to solve problems for users. And create value.
“We are now taking on the pioneer role of the industry, and we hope that through our unremitting efforts to turn waste into treasure, it will bring a new dimension to the sustainable development of the Chinese remanufacturing industry.†Jing Jingjing’s words seem to represent the Chinese remanufacturers Heartfelt.
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