Supportive policies for remanufacturing industries such as auto parts are expected to be introduced

At the same time that the car trade-in policy is in full swing, a huge industry is brewing. The reporter learned from the National Development and Reform Commission on the 21st that support policies such as "Opinions on Promoting the Development of Remanufacturing Industry" are expected to be introduced as soon as possible.

Industry insiders expect that only one auto parts will be remanufactured, and the market size in 2015 will exceed 20 billion yuan. With the support of the government, the remanufacturing market for other products will be even larger.

Partial remanufacturing project
Will receive financial support
The person in charge of the National Development and Reform Commission said that it has organized and drafted the "Opinions on Promoting the Development of Remanufacturing Industry", which is planned to be jointly released with relevant departments in the near future to guide and promote the healthy, orderly and rapid development of the remanufacturing industry.

Remanufacturing refers to the professional repair or upgrading of electromechanical products using high technology, so that they can be restored to a batch manufacturing process like new products or better than new products.

According to research by Xu Binshi, an academician of the Chinese Academy of Engineering, remanufactured products will save 50% in cost, 60% in energy saving, and 70% in materials, compared with new products. The adverse effects on the environment are significantly lower than those of new products.

The NDRC said that the forthcoming "Opinions" proposed that the "Remanufactured Product Catalogue" will be compiled to implement tax incentives for listing products.

The person also said that the next step will be to continue to use the central budget to support re-manufacturing key projects and to cultivate a number of remanufactured typical enterprises.

Remanufacturing market size
Hard to estimate
Cultivating emerging industries is a long-term and systematic job. The above-mentioned person said that this year and next year, the National Development and Reform Commission will work with relevant departments to compile the "Remanufacturing Industry Development Plan" to clarify the goals, key tasks and safeguard measures for promoting the healthy development of the remanufacturing industry in China during the 12th Five-Year Plan period, and promote the formation of circular economy. Larger scale, fostering new economic growth points.

Various factors have determined that the remanufacturing industry is expected to enter the fast lane. Xu Binshi pointed out that since the reform and opening up, China's only imported equipment has reached one trillion yuan. These equipments will soon enter the scrapping period. If it can be repaired through remanufacturing projects, this will be a huge market.

At the same time, the remanufacturing process is more complicated and the demand for labor is greater. In general, the recycling of waste materials is varied, the degree of new and old is not the same, the work of dismantling, cleaning, parts testing, screening and other processes can only be done manually, and the use of labor is more cost-effective than using machines.

Xu Binshi said, “In the remanufacturing process, labor and daily expenses account for more than 60%. This feature also adapts to the situation of China’s relatively surplus labor force and can provide more jobs.”

Qi Yiping, deputy secretary-general of China Association of Automobile Manufacturers, predicts that by 2015, China's automobile production and sales will reach 22 million units, and the demand for parts and components will reach 510 billion yuan. If 5% use remanufactured parts, the demand will reach 25.5 billion yuan.

The remanufacturing of auto parts is only one component of the remanufacturing industry. The NDRC said that in the future, while promoting the industrialization of auto parts remanufacturing, it will promote the remanufacturing of construction machinery, machine tools and other products, improve the technical level, and expand the application.

25.5 billion yuan
Qi Yiping, deputy secretary-general of China Association of Automobile Manufacturers, predicts that by 2015, China's auto parts demand will reach 510 billion yuan. If 5% use remanufactured parts, demand will reach 25.5 billion yuan.

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