Remanufacturing of construction machinery highlights the green value strategy

China is a major country in the manufacture and use of equipment. Its equipment assets have reached several trillion yuan, and the total number of 14 major models of construction machinery has reached 2.9 million units. Most of China’s construction machinery and equipment are overloaded. At present, 80% of the country’s in-service construction machinery exceeds its warranty period. If the equipment products that are eliminated are repaired, they can obtain greater returns at a lower cost. Some experts predict that The size of China's remanufacturing market can reach 10 billion U.S. dollars each year.

According to statistics, in the 8 industrial sectors involved in the US remanufacturing industry in 1996, there were more than 73,000 specialized remanufacturing companies producing 46 major remanufactured products with annual sales exceeding US$53 billion, close to the 1996 year of US steel industry. Sales of 56 billion US dollars. Among them, automotive remanufacturing is the largest remanufacturing field, with a total of 50,538 companies and annual sales of 36.5 billion U.S. dollars, accounting for 68% of all remanufacturing industries. According to statistics, the annual output value of the remanufacturing industry in the United States in 2002 was 0.4% of GDP. China's GDP in 2020 is expected to reach US$ 400 billion. If the U.S. remanufacturing level in 2002 is taken as the target for China in 2020, the annual output value of the remanufacturing industry will reach US$16 billion.

Green, environmental protection, sustainable development, and recycling have become the focus of global attention. Under such circumstances, remanufacturing has become an important component and development direction of advanced manufacturing technology. It is a concrete manifestation of the development of industrialization to a certain extent, and it is a powerful starting point for achieving sustainable development and building a resource-saving and environment-friendly society. At the same time, it has become the benchmark of the core competitiveness of the manufacturing industry.

Remanufacturing activities have a very significant role in saving energy: the energy consumption for newly manufacturing a car is 6 times that of remanufacturing, the energy consumption for newly manufacturing a car engine is 11 times that of remanufacturing, and a car is newly built to generate electricity. The energy consumption of the machine is 7 times that of remanufacturing, and the energy consumption for the key components of a new automobile engine is twice that of remanufacturing. According to Luo Baihui, general secretary of the International Mould and Hardware and Plastics Industry Suppliers Association, the annual economic losses caused by corrosion and wear of China's industrial industry accounted for 4.5% and 5% of the annual GDP, respectively, while the two developed countries added up losses. Between 4.5% and 5%, remanufacturing can save the country 155 billion yuan annually. The performance and quality of remanufactured products can reach or even surpass the new ones, while its cost is only 1/4 of that of new products, energy saving is more than 60%, and material saving exceeds 70%, maximizing the potential value of manufacturing products and enabling energy Close to zero waste of resources can bring tremendous wealth to society.

The fundamental reason for the potential value of remanufacturing is that the service life of each component in the machine is not equal, and the service life of each working surface of each component is not equal, which provides the requirements for the implementation of remanufacturing.

The cost of manufacturing a machine or a component is composed of the cost of raw materials, the cost of manufacturing labor, the cost of energy consumption, and the cost of equipment and tool wear. Among them, the latter three costs are called finished value added relative to the cost of raw materials. Taking the automotive engine as an example, the value of raw materials only accounts for 15%, and the added value of finished products is as high as 85%. Luo Baihui said that the economic benefits of remanufacturing are obvious. Through remanufacturing technology, the lifespan of the product can be extended at a relatively small cost, creating greater economic value, and the cost is actually less than 50%. In the modern society, the protection of the environment has also been incorporated into the cost of economic development, and all countries are striving to maximize the economic benefits under the premise of protecting the environment. However, remanufacturing is still in its infancy in China. The constraints are as follows:

1. There is a lack of uniform standards for the remanufacturing of domestic construction machinery, resulting in a lack of standards for the quality of remanufactured products;

2. The effective recovery of equipment is difficult to achieve. China has not yet opened up the free circulation market for used parts and components, and it is difficult for regular remanufacturers to obtain old parts.

3. The relevant supporting policies of the country are not perfect, such as tax policies;

4. The concept of consumption by domestic users is far less acceptable for remanufactured products than new products.

The promotion and use of remanufacturing technology not only saves resources and energy, but also has the effect of protecting the environment. This is a great asset for society.

For example, the remanufacturing of used and used mechanical and electrical products can reduce the environmental pollution caused by the extraction, extraction and manufacturing of new products in the original mines, and at the same time, it can greatly save energy and reduce greenhouse gas emissions. The U.S. Environmental Protection Agency estimates that if the results of the U.S. automotive recycling industry can be fully utilized, the level of atmospheric pollution will be reduced by 85% from the current level, and the volume of water pollution treatment will be reduced by 76% from the current level. Each year, only 14 million tons of materials are saved by the world's remanufacturing industry. The energy saved is equivalent to the annual power generation of eight medium-scale nuclear power plants. This fully shows that the remanufacturing of used products can reduce the exploitation of resources, reduce the pressure on the world's per capita resources to keep shrinking, and meet the needs of sustainable economic development.

The current situation facing our country's environmental problems is very serious, environmental pollution is deteriorating, and per capita possession of resources continues to shrink. We urgently need to change the mode of development. Remanufacturing just fits the goal of building a resource-saving and environment-friendly society. It can be said that remanufacturing has become an important part of China's development of circular economy.

The potential of enormous value in remanufacturing is not only to create rich profits for enterprises and countries, but also to embody the macro-environmental protection policy, but also to highlight a certain sense of social responsibility.

First of all, remanufacturing can provide more affordable and reliable commodities to relevant demand parties, improve people's material living standards, and reduce unnecessary expenses. Since remanufacturing fully extracts the added value contained in the product, there is a clear price advantage when the product is sold. If the engine is remanufactured, the quality and service life of the engine will reach or exceed new products, and there will be perfect after-sales service. The price is only about 50% of the new machine, and it can be used by people with different income levels and who care about the environment. In Israel, the recycling price of a used Boeing 747 is about 2 million U.S. dollars, but Israel remanufactured the old passenger aircraft into cargo aircraft with a price of 80 million U.S. dollars, while the new cargo plane has a price of 130 million U.S. dollars.

Second, with the development of remanufacturing, a number of emerging industries will be able to emerge, thus solving part of the employment problem. The United States' remanufacturing industry will employ 1 million people in 2005. If China reaches the 2005 level in the United States by 2020, it will create more than 1 million jobs. Research in the United States shows that for every 100 employees in the remanufacturing and recycling industries, the mining industry and the solid waste safety treatment industry will lose 13 jobs. Compared with the two, it can be seen that the employment opportunities created by the remanufacturing and recycling industries are far greater than the reduced employment opportunities.

Finally, if the concept of remanufacturing is known and recognized by most people, if our enterprises use the remanufactured products to be favored by consumers and can promote their use, then the whole society will enter the era of remanufacturing. This will be The leap of the entire manufacturing industry is also the leap of the entire society.

In 2005, the State Council made clear its support for the development of remanufacturing in the "Several Opinions on Accelerating the Development of Circular Economy." The first batch of circular economy pilots will focus on remanufacturing.

In 2008, the National Development and Reform Commission first selected the auto parts industry to carry out remanufacturing pilot projects. At that time, 11 companies including FAW, Chery and JAC were selected as pilot sites. After two or three years of exploration, positive progress has been made in the area of ​​auto parts.

The "Circular Economy Promotion Law" implemented in January 2009 incorporated remanufacturing into the legal system.

In 2009, 33 companies and two industrial agglomeration areas in the construction machinery, mining machinery, railways, machine tools and other industries were used as test units and began to explore the development of the remanufacturing industry in all directions.

On September 14, 2011, the National Development and Reform Commission issued the Notice on Deepening the Pilot Work of Remanufacturing, which will expand the types and scope of remanufactured products and increase support.

At present, the research and preparation of the “Remanufacturing Products Catalogue” (hereinafter referred to as the “Catalogue”) has been put on the agenda. The construction machinery remanufactured products are 60% more energy efficient than new products. On average, 70% of the components can be reused. In the manufacturing process, more than 80% of energy consumption can be saved. The average price is only 30% of new products. 40%, the cost is actually less than 50% of the original.

11 departments including the National Development and Reform Commission jointly issued the "Opinions on Promoting the Development of the Remanufacturing Industry." Construction machinery has emerged as a key area for the development of remanufacturing industries such as auto parts and machine tools. The “Circular Economy Promotion Law” promulgated last year also clearly stated that the state will support enterprises in the remanufacturing of motor vehicle parts, engineering machinery, machine tools and other products. This "Catalogue" is a continuation of this series of policies.

It is understood that in the preparation of the "Catalogue," the Development and Reform Commission will also work with relevant departments to study the corresponding tax incentives. This is one of the issues that companies are most concerned about. There has been a controversy before this, if the remanufactured product is categorized as old product recycling, there will be no value-added tax invoice, which means that the remanufactured product cannot enjoy the VAT deduction policy, nor can it deduct the remanufacturing enterprise VAT. The development of the enterprise has brought about greater obstacles. This time promised to let companies eliminate the concerns of lack of tax support.

Followed by the guidance of energy-saving emission reduction policies. The Chinese government promises that by 2020, the unit's GDP will be reduced by 40%-45% compared to 2005. With the sustained and rapid development of the economy, especially the acceleration of industrialization and urbanization, China will face tremendous pressure and challenges to achieve this emission reduction target. It is also such a hard constraint indicator that the concept of remanufacturing gradually became popular in China's construction machinery industry.

In addition, the country has been limiting the use of second-hand imports of excavators and other products, one of the reasons is that these old products have too many hidden safety problems, maintenance difficulties, and will impact the new product sales. With the gradual rise of the remanufacturing business, it can be found that this policy has virtually cleared up market obstacles for remanufactured products. The low prices of remanufactured products and used products are advantages that attract users. If this advantage of used products is effectively transplanted to remanufactured products, it will provide a very broad market space.

The Ministry of Industry and Information Technology will promote the development of remanufacturing industry from four aspects. 1. Make some explorations from the policy system or the environment;

2. Grasp the establishment of a standard system for remanufacturing technology;

3. Further increase the propaganda of remanufacturing enterprises and products and increase user awareness;

4, to be based on solving the problems in the maintenance system.