Rematec Asia sees insurers and government taking the lead

Asiawide, the only auto part remanufacturing exhibition “Rematec Asia 2020” had its grand opening on 11 October in Guangzhou. Dutch leading exhibition organiser, RAI Amsterdam, in cooperation with its Chinese counterpart China National Machinery Industry International Co., (Sinomachint) has introduced the Rematec trade show brand to China in October 2019. Consul General Michiel Bierkens was invited to join the opening ceremony, and to give the continuous support to Rematec and the Dutch auto part remanufacturing industry.

Representatives from insurance companies made a striking appearance among the approximately 20,000 visitors to Rematec Asia 2020. “An important development is going on there,” says Rematec’s Director Yorien de Ruijter. “The Chinese insurers were clearly orienting themselves, contacting exhibitors who are able to supply large volumes of reman products. They find these products interesting for two reasons. They have started to calculate with the price advantage of roughly 30 percent of high-quality remanufactured parts compared to new parts. If an insurer stipulates, in the event of damage, that garages use reman parts, that saves a bunch. The savings can provide a competitive advantage, especially if that translates into lower premiums.”

China’s government urges: sustainability
In addition, a serious sustainability development is also going on in China - under the explicit encouragement of the government. The use of reman components is an interesting option for insurers to make their activities greener. “China is one of the first countries in the world where insurers want to make serious and structural work on high-quality remanufactured re-used parts,” says Yorien de Ruijter. "A good example, from which insurers in Europe and America can also learn."

Bridging East and West in Remanufacturing
Over the last 20 years, Rematec has been developed into the world’s leading event for automotive parts remanufacturing, benefiting from the excellent reverse logistics, high quality and professionalism of the European remanufacturing industry. Guangzhou city has been appointed by the Chinese Central Government acting as one of the main core national remanufacturing hubs. For the second time Rematec Asia certainly provided a good platform to stimulate bilateral collaboration and promote circular economy initiatives.