In the future, users find that some equipment is broken, so long as the old part is handed over to the manufacturer, a new equipment can be obtained at half price. For manufacturers, through a "re-manufacturing" process, the old parts can be restored to a level comparable to the new equipment, and then sold at the price of the new equipment. Thus, remanufacturing not only reduces the user's equipment purchase cost, but also gives the manufacturer a considerable profit margin. What is even more valuable is that it maximizes the recycling of industrial old equipment.
As a remanufacturing of new things, China is gaining momentum. In Shanghai's Lingang Industrial Zone, Caterpillar, the world's largest remanufacturer, has settled two years ago and has built the largest remanufacturing and logistics center in the Asia Pacific region. This year, with the support of the National Development and Reform Commission, more than 10 companies across the country have been allowed to carry out pilot remanufacturing of auto parts.
Not long ago, "remanufacturing" was also written into the first "Circular Economy Promotion Law" promulgated by China, and the entire industry is ready to come. It is predicted that the global remanufacturing market will have a scale of 100 billion U.S. dollars, and China will reach a market size of 10 billion U.S. dollars by 2010. Remanufacturing industry, it is time to sail.
Not only repairs and reuse
Equipment refurbishment is a simple definition of remanufacturing. But it is not a repair and reuse in traditional concepts.
Relevant person in charge of the Shanghai Remanufacturing Center of Caterpillar introduced the remanufacturing production process to reporters. After the old equipment was recycled, it was completely disassembled to the last screw and cleaned; after that, all parts were screened. Part of it is the consumable part that needs to be completely replaced, part of it can be restored to its original shape, such as the cylinder head, and some parts do not need to be updated or repaired, such as screws, etc., and can be used again as long as it is cleaned.
Then, the “replaced, cleaned, and repaired†components enter the assembly line and are completely disrupted and completely combined and manufactured. Compared with the “manufacturing industry†process, the biggest difference in “remanufacturing†is that the raw materials are used products, but the production process of combining new equipment is the same. After the products have been tested and tested, the performance is exactly the same as the new products. . This is not a one-level concept with the “repair†of simply returning old parts to consumers.
According to media reports, the benefits of remanufacturing are staggering. Taking the remanufacturing of an engine cylinder head as an example, the amount of carbon dioxide it releases is 61% lower than that of producing a new device, water consumption is reduced by 93%, energy is reduced by 86%, material consumption is reduced by 99%, and landfill space is reduced by 99%. And its cost is only between one-third and two-thirds of a new engine cylinder head. Huge profit margins are hidden in the process of “renovating with the oldâ€.
It is understood that Caterpillar remanufacturing currently has more than 160 professional production lines for remanufactured products, involving 7 countries in North America, Europe, Asia Pacific and other regions. In 2005, Caterpillar remanufactured sales of US$1 billion, and the annual growth rate will reach more than 15% in the future. Remanufacturing became the fastest-growing segment of this global equipment manufacturing giant.
Of course, because the remanufactured raw materials are all waste products, the products they produce will need to pay more in order to gain consumer acceptance. It is understood that remanufacturing companies generally pay more attention to the quality of products than traditional manufacturing enterprises. At present, most remanufactured enterprises in the world have already reached the ISO standard, and some even exceed the QS9000 certification.
Chaoyang industry with Chinese characteristics
Compared with the traditional manufacturing industry, the remanufacturing industry uses almost free materials. With the increasing shortage of resources such as oil, metals and minerals, the attractiveness of this business model will become stronger and stronger. The reporter also found that this new thing actually has a more fertile “soil†in China.
From the perspective of the supply of used materials, China can be described as rich in "raw materials." Xu Binshi, an academician of the Chinese Academy of Engineering, believes that since the reform and opening up, China’s imported equipment alone has reached trillions of yuan. Due to gaps in equipment maintenance technology, foreign machinery and equipment can be used for 40 years. China may only use 20 years. These equipment have been used in recent years. One after another into the retirement period, if these equipment can be repaired through remanufacturing, this will be a huge market. At the same time, electronic products, computers, automobiles, and motorcycles that are being phased out in China are also increasing. If these waste equipment cannot be disposed of in time, it will not only bring economic benefits, but will also cause serious pollution to the environment. The introduction of remanufacturing made more efforts in one fell swoop.
At the same time, the remanufacturing operation is more complicated and the demand for labor is also greater. In general, the recycling of waste materials is various and the oldness is not the same. The work of dismantling, cleaning, parts inspection, screening and other processes can only be completed by hand. The use of labor is more cost-effective than using machines. According to the survey, when manufacturing new equipment, 70% of the cost is spent on materials, and 30% of the cost is spent on the labor force; but in the remanufacturing process, labor and daily expenses and other costs account for more than 60%. This means that remanufacturing is a labor-intensive industry. This feature also just adapts to the relative surplus of China's labor force and can provide more jobs.
"Although China's remanufacturing industry has developed relatively late, it has developed very well. It has become one of the world's most important remanufacturing centers on a technical level." Xu Binshi pointed out that because China's remanufacturing project has technically abandoned foreign countries. The main replacement repair method is to make a new part to replace worn parts. China's remanufacturing is based on advanced remanufacturing key technologies supported by advanced surface engineering technologies to accurately recover the size of used parts to achieve the original performance, and can even significantly improve the original performance, that is, “repair the old as newâ€. What is important is the high utilization rate of resources and less energy consumption. These technologies are at the leading level internationally.
The atmosphere for encouraging the development of "remanufacturing" in China has also gradually become stronger. According to reports, as early as October 2004, the National Development and Reform Commission proposed a pilot study on the demonstration of engine remanufacturing and a feasibility study on the reuse of waste computer products. In 2005, six ministries and commissions including the National Development and Reform Commission jointly issued circulars on circular economy pilot work and remanufacturing became one of the four areas. In the "Eleventh Five-Year Plan" National Science and Technology Support Plan issued by the Ministry of Science and Technology in 2006, "Key Technology and Application of Auto Parts Remanufacturing" was also listed as a key topic. Two years ago, the National Development and Reform Commission signed a letter of intent with Caterpillar to jointly develop the remanufacturing industry. It is also intended to introduce the concept of remanufacturing to China and to promote the entire industry.
Industrialization begins with the creation of an environment
The remanufacturing industry has started to take off, but there are still many gaps in the domestic industrialization environment.
The improvement of the old recycling system has yet to be explored in China. At present, the recycling of used materials such as old household appliances, old mobile phones, and old batteries shows that the standard processing companies cannot directly recycle used products. Even if there are specialized companies for recycling, the costs are too high to be sustained due to taxation and so on. Waste materials have flowed into the underground market and have been completely dismantled and illegally disposed of, seriously polluting the environment.
How can remanufacturers get old parts unimpeded?
In this regard, Caterpillar's experience can be used as a reference. It is understood that Caterpillar does not ignore the fact that it does not sell its products, but instead maintains a relationship of product replacement with its customers. When the customer wants to replace an engine cylinder head, he can get the retreaded cylinder head at a discounted price simply by handing the old part to Caterpillar. In order to encourage customers to hand over the old parts, the company even returns part of the cash so that the old parts will not be lost to the market. The well-developed dealership network and incentives for returning old items will enable Caterpillar to return 80% of the equipment it sells. Next, Caterpillar also intends to engage in the recovery and remanufacturing of "non-homemade equipment."
At the same time, relevant policies also encourage traditional manufacturing companies to prepare for “remanufacturing†when they first manufacture equipment. It is understood that Caterpillar is easy to refurbish after returning to the factory in order to make the equipment old. Therefore, when the equipment is designed and produced, new product engineers and remanufacturing engineers are required to work together so that one set of equipment can withstand two or three. Remanufacturing process.
In addition, remanufacturing products also need to be more widely recognized. Caterpillar officials told reporters that they first hope that domestic industrial policies will give a clearer definition to the remanufacturing industry and remanufactured products. At present, due to the lack of relevant regulations for remanufactured products, the import and export of remanufactured raw materials and products are restricted. The definition of remanufacturing will ensure that the product's further specifications, such as performance, safety, environmental protection, and quality requirements, will be the same as new ones. These are the preconditions for the healthy development of the industry. In addition, government departments must establish a market circulation standard for remanufactured products as soon as possible, and at the same time guide the market and consumers to increase their recognition of remanufacturing, encourage consumption, and promote industrial development. In the transaction and taxation of all remanufactured products, we must also maintain fairness and fairness.
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