Remanufacturing industries such as hardware may break through private capital investment restrictions

On May 31, 11 departments including the National Development and Reform Commission, the Ministry of Science and Technology, and the Ministry of Industry and Information Technology jointly announced the "Opinions on Promoting the Development of Remanufacturing Industries" (hereinafter referred to as the "Opinions"), in order to strengthen macro instruction, deepen pilot demonstration, and strengthen key technologies. R&D, demonstration, promotion, and improvement of hardware and other remanufacturing industry development policy mechanisms and strengthening of publicity and training to promote the healthy development of hardware and other remanufacturing industries, and to expand the scale of remanufacturing industries such as hardware. The strength of policy support is unprecedented.

If it is not a joint document issued by 11 departments, the hardware and other remanufacturing industries are equivalent to ordinary “maintenance” in the eyes of most consumers, and they are also skeptical about the quality of remanufactured parts such as hardware. Today, hardware and other remanufacturing industries have become hot spots for companies to pursue.

Industry insiders believe that the promotion of hardware and other remanufacturing policies has provided new development ideas for major companies. Enterprises such as home appliances and automobiles have already started to re-use waste products as new means of profit. However, due to public perceptions and production cost constraints, it is not easy to make market-oriented development.

The temptation of the output value of one hundred billion

In the past 50 years, foreign remanufacturing such as hardware has become a unique emerging industry as an important part of the manufacturing and service industries. In China, this aspect is almost blank.

"Household appliances and auto products have been scrapped in the recycling system. In fact, hardware and other remanufacturing industries have greatly promoted the mitigation of resources, environmental pressure, promotion of energy-saving and emission reduction, and the transformation of economic growth patterns." Car analyst Jia Xinguang believes that in the field of remanufacturing such as hardware, the auto market alone implies an output value of 100 billion yuan.

Remanufacturing such as hardware is an industry that implements high-tech repair and transformation of used products. Targeted at components that are damaged or will be scrapped, based on the analysis of performance failure analysis and life assessment, the company will conduct hardware and other remanufacturing engineering designs and adopt a series of related advanced manufacturing technologies to achieve the quality of hardware and other remanufactured products. More than new products. Director of the Changhong Engineering Technology Center and manager of waste household appliances recycling project Pan Xiaoyong told reporters that general hardware and other remanufacturing have gone through three major steps. The first step is to dismantle the whole and dismantle the originals of major categories such as picture tubes and line tubes; The second step is reprocessing, which includes the removal of hazardous substances and the recycling of raw materials such as copper and iron. The third step is deep processing, that is, refinement. In the process, scattered plastics may become plastic plates, and metals also become The finished metal to be used.

Statistics show that at least 90% of parts and components in Germany can be reused or properly handled. Since 1947, Volkswagen AG in Germany has paid attention to remanufacturing such as hardware. Up to now, only 7.84 million units have been remanufactured by hardware, including original engines. According to statistics, hardware and other remanufacturing of these 7.48 million engines is equivalent to saving 337,366 tons of steel. These steels are enough to build 49 Eiffel Towers and 161 Golden Gate Bridges. For home appliances, many of the key parts in the scrapped products are in good condition. For example, if the LCD TV is in good condition, it will save up to 80% of the cost.

Not only that, the remanufacturing industry such as hardware has also played a significant role in reducing emissions, including 572,220 tons of carbon dioxide emissions, 569 tons of dioxide* emissions, and 662 tons of nitrogen oxide emissions.

Industry observer Zhang Yanbin told reporters that with reference to the relevant experiences and models of Japan and the European Union, the recycling of used products will be a huge “hidden gold mine” for enterprises. Recycling of resources after scrapping and re-listing sales of old products can bring a good market space for the company.

Guo Guodong, a strategic analyst at Everbright Securities, expects the market size of China's hardware and other remanufacturing industries to reach 190 billion yuan in 2015, and the development potential of hardware and other remanufacturing industries is huge. “The annual production value of remanufacturing industries such as hardware in the United States in 2002 was 0.4% of GDP. China’s GDP is expected to reach 37 trillion yuan in 2010, and it is expected to reach 48 trillion yuan in 2015. If China’s hardware in 2010 and 2015 wait, If the manufacturing industry level reaches 0.2% and 0.4%, the annual output value of hardware and other remanufacturing industries will reach 74 billion yuan and 1920 billion yuan, respectively, said Guo Guodong.

The National Development and Reform Commission has publicly released data. Compared with manufacturing new products, hardware and other remanufacturing can save costs by 50%, save energy by 60%, and save 70% of raw materials. Hardware and other remanufacturing can reduce the use of bulk commodities such as steel, copper and plastic granules. And the import volume, hardware and other remanufacturing industries show attractive prospects.

In view of the enormous benefits brought by the remanufactured hardware to the society's circular economy, the "Opinions" clearly stated that China will focus on the remanufacturing of parts and components such as automobile engines, gearboxes, and generators, and auto parts hardware. The scope of manufacturing pilots was expanded to include transmission shafts, oil pumps, and water pumps; at the same time, remanufacturing of construction machinery, machine tools, and other hardware, and the refurbishment of large-scale waste tires were promoted.

In addition to related policies such as hardware and other remanufacturing, the National Development and Reform Commission has also published the “Details on the disposal of waste electrical and electronic products” under the “Management Regulations for the Recycling of Waste Electrical and Electronic Products” (hereinafter referred to as the “Regulations”). TVs, room air conditioners, refrigerators, washing machines, and microcomputers will be the first batch of products to be recycled and dismantled in accordance with national standards in the "Regulations" implemented in early January of next year.

Magnification of policy support

If all industries have policy support, they seem to have started to become a law. The most important thing is that the market performance of hardware and other remanufacturing has fully reflected the company's expectations for the future. With policy support, the company's early investment may be able to avoid embarking on the market.

In fact, before the policy was introduced, various companies already smelled this huge business opportunity. As early as 2005, Haier took part in the recycling of used home appliances. Haier established a “Qingdao Xintiandi Ecological Cycle Technology Co., Ltd.” waste home appliance dismantling center in a joint venture with another company in Jiangshan Town of Laixi, and set up a community recycling facility for used household appliances in Qingdao and other areas, which will recycle used household appliances and production. All defective products that were scrapped were sent to Xintiandi for dismantling and harmless treatment.

Changhong, another long-established household electrical appliance company in Chengdu, has also begun to build a waste household appliance processing base and is expected to be completed and put into operation next year. According to the plan, by the end of 2012, Changhong will build 7 waste electronic and electrical recycling production lines for the disposal of used TVs, refrigerators, washing machines, air conditioners, plastics, circuit boards and so on.

Pan Xiaoyong introduced that in order to reduce environmental pollution and realize the reuse of resources, Changhong has invested 6 million yuan in the construction of a recycling appliance line for used household appliances in recent years.

It is understood that, in addition to home appliance companies, the recycling industry has become the focus of the manufacturing companies. It is understood that the recycling and dismantling industry for end-of-life vehicles in China has formed a certain scale. There are currently 480 retired and dismantled enterprises for scrapped automobiles, and more than 1,800 scrapped automobile recycling outlets.

Liu work is the first batch of remanufacturing pilot units for mechanical and electrical product hardware released by the Ministry of Industry and Information Technology. It has been involved in the remanufacturing fields such as hardware for 10 years. The president of Liugong Zeng Guangan told reporters that Liugong’s remanufacturing such as hardware is based on cooperation between domestic and international distributors, repurchasing from customers, and remanufacturing and reselling hardware. After a series of modern processing methods, let it return to the quality of new parts.

In fact, since the implementation of the old-for-new policies for automobiles and home appliances that were implemented last year, the recycling of recycling and dismantling has been urgently needed to sort out the various policy issues that exist throughout the industry chain.

The “renewal of old technology” not only stimulates domestic demand, but also brings development opportunities to recycling companies. However, national trade-in is a regulatory policy and cannot be permanently promoted. According to Jiang Peifeng, chief consultant of Digital China Brand Communication Research Institute, trade-in-trade has paved the way for the development of recycling companies. However, industry development cannot rely on short-term national policies. Recycling companies how to formulate development plans suitable for their own companies, connecting home appliances, cars to the countryside is the next step to go.

Market problems

Remanufacturing such as hardware has been extensively researched and applied in industrialized countries. China also attaches great importance to the recycling of used materials, and has formulated corresponding plans in various stages of national economic development. However, due to the relatively short development time of hardware and other remanufacturing industries in China, the related technologies and laws and regulations are not sound enough, which has caused the industry to encounter a lot of practical difficulties.

Experts generally believe that public awareness is placed on the greatest difficulty in remanufacturing such as hardware. In an interview, the reporter found that hardware and other remanufacturing are still a strange term for consumers, and hardware and other remanufactured products are generally considered to be the concept of second-hand goods renovation.

In this regard, Jia Xinguang said that companies have the responsibility and obligation to establish a positive image of hardware and other remanufactured products in the consumer sector and dispel consumer concerns. “Through the promotion and popularization of hardware and other remanufactured products, consumers are made aware that in the production process, the quality of remanufactured products such as hardware must meet the requirements and return to the original new level; in the use of links, hardware and other remanufacturing The product also has a warranty period as new."

However, the end consumer's concerns may be resolved through publicity, but the level of dismantling of manufacturers is uneven but it is worthy of industry attention. Jia Xinguang told reporters that although there are a large number of enterprises for automobile recycling and dismantling, most of them have low levels of dismantling, they are poorly equipped, equipment and facilities are backward, and there are relatively serious environmental and safety risks. The resource utilization rate is not high, and there is an urgent need to improve. Level.

“The majority of glass and interior parts are garbage, especially electronic components. There are no channels for reuse. Aluminum and copper metals such as engines and gearboxes are also refined and can be sold as scrap metal. The person in charge of a dismantling point also stated that due to the manual operation, the operation of dismantling is still very extensive.

Fortunately, on March 21, 2008, China's auto parts hardware and other remanufacturing pilot projects were formally launched. The National Development and Reform Commission has identified 14 companies to carry out pilot projects for the remanufacturing of auto parts hardware. Among them are China FAW, Anhui Jianghuai, and Chery's three vehicle production companies and 11 remanufacturing pilot companies such as Jinan Fuqiang, Weichai, and Yuchai.

A person in charge of a remanufacturing company, such as parts and components hardware, also stated that, compared with the direct recycling of used parts and components, hardware and other remanufacturing can save costs by 50%, and can produce significant economic benefits. Compared with manufacturing new products, hardware and other remanufactured products have good energy-saving and material-saving benefits, can achieve energy-saving 60%, save 70% of materials, hardly produce solid waste, and reduce the emission of atmospheric pollutants by more than 80%.

In addition, the cost issue has also constrained the development of this industry. Luo Qingqi, a senior director of Pall Consulting, said, “As a simple example, the plastic housing of a TV set can be recycled and reused, but due to technical problems, it is generally difficult to achieve new molding. The cost of household appliances may be higher than the cost of manufacturing new products, which is also the reason for difficulties in the hardware and other remanufacturing industries.Currently, pilot companies such as Haier and Changhong have recovered under the support of the state. , dismantling has made great progress, but it is unlikely that real re-use is possible."

Private capital or breaking the investment bottleneck

In Jia Xinguang's view, hardware and other remanufacturing models have developed rapidly in China, but it is not enough to tap the huge potential for remanufacturing such as hardware, and not all remanufacturing companies such as hardware have been plain sailing. "Most of them are at a loss, there are problems with their survival, and it is very difficult for them to develop." Jia Xinguang described the current status of the dismantling industry.

People in the industry believe that although the profit model of recycling has become the focus of attention of all parties, there are six months before the official implementation of the “Regulations” on January 1, 2011, and the current specific operating system for recycling of waste electrical and electronic products Still not clear, how to deal with how to pay ** is not yet conclusive.

In accordance with the "Regulations", the state will establish disposal of waste electrical and electronic products**, subsidies for recycling costs, and the producers of electrical and electronic products, consignees of imported electrical and electronic products, or their agents will become responsible for processing payments. The legal person responsible for the obligation.

“Manufacturers said they did not make money originally, and recycling companies said they had lost money without subsidy, a reduction in demand, and an increase in subsidies. This contradiction is the most difficult issue for institutional developers.” China’s recycling of renewable resources Use the Deputy Secretary-General of the Association, Fu Hongyu. It is not difficult to see that the ** charging system has not yet been introduced, and it is not unrelated to the difficulty of coordinating the interests of all parties. How to reach a balance point will become the biggest aspect of the system in the future.

The early completion of the recycling system for waste electrical and electronic products has almost become the common voice of China's waste electrical and electronic recycling companies. Pan Xiaoyong believes that there is no industry supporting industry that can not be healthy and sustainable. Consumers in Europe, America, Japan and other countries are the main sources of waste electronic recycling costs. Currently, domestic electronics manufacturers should be the main source of **, after all, large companies still have the strength to promote the development of this industry. In the future, consumers, electronics manufacturers, and the state are all obliged to bear this cost.

Shen Jian, a spokesperson for Skyworth Group, said that the industrialization of discarded electronic recycling is a new profit point for the entire consumer electronics industry. The establishment of ** is very necessary, but the structure, management model, and revenue model of ** are not clear. The plan is that different companies have different products and different proportions. It is of course unreasonable to use a one-size-fits-all fee standard. The new model requires the consultation of all parties.

At the same time, as the basis and core of the “re-quantification, resource-based, and hardware-based remanufacturing” of the circular economy, whether the comprehensive utilization of resources can obtain more support and attention is also the focus of attention of all companies. “In the short term, the economic efficiency is not outstanding, and the impetus for social capital to invest in the development of circular economy is insufficient. Enterprises have long faced problems such as insufficient investment and difficult financing.” The head of the Department of Resource Saving and Environmental Protection of the National Development and Reform Commission admitted that, in addition to the national hardware and other remanufacturing demonstrations. Pilots, the source of funds for many remanufactured companies such as hardware still needs the support of social forces.

Jia Xinguang believes that hardware and other remanufacturing industries will usher in the golden period of development. China now has a large number of private capital in finding a way out. To solve the capital bottleneck problem of circular economy enterprises, the state should guide social investment in this direction.