China: Reman Opportunity or Threat?

The big question we put to people in this issue was whether they agreed that China is an opportunity - not a threat - for reman. The answer was overwhelming…

Xie Jianjun, secretary general, Remanufacture Committee of China Association of Automobile Manufacturers:

“China’s reman industry is just ten years old. We have a lot to learn from foreign companies: knowledge and experience can be exchanged. If we’re all co-operating, then there’s no threat – instead, it’s an opportunity. There are no barriers to selling in China. Most local Chinese reman companies are not trying to conquer Europe or America.”

Jens Uhl, head of reman, ZF Services:

“We expect China to become the biggest growing market for remanufactured products in the Asia Pacific region. China sees the importance of reman as part of an environmental protection and promotes sustainable business by concession contracts.

After gaining the China remanufacturing licence in 2013, ZF established a centre in which to remanufacture automatic passenger car transmissions and mechatronics for its customers. Remanufactured parts offer the same quality standards as volume production components and an optimal cost/benefit ratio. The reman working group of the German Association of the Automotive Industry (VDA) has a sub-group in China, headed by local ZF management, which promotes all these advantages because there is still a kind of uncertainty about the quality of reman products.”

Shi Peijing, vice director, National Key Laboratory for Remanufacturing:

“China has a big potential market and the reman industry can grow very rapidly. We are trying to get more contact with colleagues in Europe and America – they certainly see it as an opportunity. Maybe it won’t develop like traditional industries such as steel or new cars, but we must have competition – we’re all on the same planet, after all!”

Yan Wang, senior lecturer, University of Brighton

“Remanufacturing in China has the fastest growth rate and could be the largest remanufacturing market in the whole world. With comprehensive support from government, including policy and financial incentives, establishment of a certification system and the development of standards, reman in China will take off in the near future and play an important role in the world remanufacturing community.

The rapidly-growing domestic market presents massive investment opportunities in China. Meanwhile, some leading Chinese remanufacturers are starting to invest abroad: Europe and the US are the main destinations for investment. This will allow resources to be organised globally and pour much-needed investment into infrastructure and training of staff as well as global supply chain management and business modes which are essential for the uptake of remanufacturing in western countries.

The investment from China to western countries in remanufacturing will create good job opportunities and achieve environmental gains in these countries.”