Dongfeng Cummins: "Remanufacturing" Lights Green Future

"Recycling" has always been one of the core concepts of environmental protection. As a large consumer of energy, the need for recycling in the machinery manufacturing industry is also more urgent. Remanufacture is the production method of “recycling and recycling”: using old machinery and equipment as a core, using special The process and technology are based on the original manufacturing of new manufacturing, and the re-manufactured products are no less than the original new products in terms of performance or quality. The world's major machinery manufacturing companies, including automotive and spare parts manufacturers, have already made the remanufacturing business an important part.

China introduced the concept of "remanufacturing" in the late 1990s to carry out industrial innovation in environmental protection and sustainable development. In March 2008, the National Development and Reform Commission awarded 14 domestic auto and parts and components companies the qualification to carry out "remanufacturing" projects. These 14 companies have considerable influence in the industry: the quality of the brand is excellent; the company has a strong sense of responsibility for environmental protection and energy conservation and a considerable technical capacity reserve; Dongfeng Cummins is one of them, which has also become the start of the remanufacturing business of Dongfeng Cummins.

In September 2008, the remanufacturing pilot project of Dongfeng Cummins Engine Company was reviewed by the National Development and Reform Commission and won unanimous praise. In February 2009, Dongfeng Cummins signed a cooperation agreement with Cummins, its parent company, to jointly advance the remanufacturing project of Dongfeng Cummins. Cummins's remanufacturing projects in the US market have been under way for several decades, accumulating a large amount of technical resources, providing Dongfeng Cummins with support in terms of standards, technology, talent, and craftsmanship, and allowing Dongfeng Cummins' remanufacturing projects to go together. Walking in the forefront of the industry. In March 2010, the Dongfeng Cummins remanufacturing plant was officially launched and launched in December. According to Dongfeng Cummins, it is expected that its remanufactured engines will reach 10,000 units in the next 3-5 years.

Dongfeng Cummins remanufacturing production assembly line
Dongfeng Cummins remanufacturing production assembly line

In fact, compared with the United States and other countries, China's remanufacturing industry has not developed at the present stage: due to the existence of a large gray old parts recycling network, the regular manufacturers have higher acquisition costs for old parts, and manufacturers are remanufacturing. The production cost is almost the same as the new one, which leads to a lower profitability of remanufacturing. Under this special situation, the national industrial planning department subsidizes the remanufacturing projects to help them complete the preparations for the preparatory accumulation. After all, remanufacturing is closely related to energy conservation and sustainable development: According to statistics, every recycling A Dongfeng Cummins engine can save nearly 300 kilograms of steel compared to a new one. Dongfeng Cummins also regards remanufacturing as an important part of the company's future energy-intensive development.

Different from people's usual ideas, remanufactured products are not "used goods." Product quality is equal to new products. It is completely consistent with new products in terms of performance, user commitment, warranty, etc., and related national quality supervision departments are also successively. The introduction of specific laws and regulations guarantees this. However, considering that the current level of understanding and acceptance of remanufactured products by end users needs to be improved, the state requires that remanufactured products not enter the new machine assembly market, and only enter the spare parts repair market. Usually, the price will be 25% cheaper than the new ones. about. According to reports, the remanufactured products of Dongfeng Cummins are currently aimed at the old machine replacement market for large-scale transportation and logistics enterprises, and adopting the user's "old machine + price difference" in return for the "re-manufacturing" new machine or the "old machine + price difference" in exchange for a new one. The model of the engine is sold. On the one hand, it will save users' procurement costs; on the other hand, “remanufacturing” will foster a stable and gradually expanding end-user group.

Remanufacturing production
Remanufacturing production

In fact, there are two strategic considerations for Dongfeng Cummins to vigorously implement remanufacturing: First, it is out of the commitment and responsibility of an automotive core component company for environmental protection: Over the years, energy conservation and environmental protection have been the most important element in Cummins’ global CSR system. Dongfeng Cummins has implemented the concept of environmental protection in all aspects from product design, technical standards and production processes, and remanufacturing is of course due to it. The second is to provide users with a lifelong product service platform to create value for customers: the remanufactured market for new exchanges, so that Dongfeng Cummins end users can obtain updated power parts and components with minimal purchase costs and minimal transfer costs. It provides users with better choices. Combining corporate social responsibility with long-term industrial development direction and taking into account recent market performance, remanufacturing in Dongfeng Cummins is no longer a concept, but is becoming a real action, bringing about social and consumer Maximizing value also creates a greener future for Dongfeng Cummins.

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