Caterpillar Boost remanufacturing industry

A few years ago, Caterpillar has been expanding continuously. Caterpillar announced an excavator production capacity expansion plan will expand to four times in Xuzhou Factory till to 2014. The first half of this year, Caterpillar still committed to advancing the base of Jiangsu, Shandong and other expansion plans and plan launched caterpillar excavator.

However, according to the reporter from Caterpillar (China) insiders, trapped in the Chinese market downturn, the project has not been pushed substantially. Unlike traditional capacity stopped expansion in China, Caterpillar remanufacturing field increased development efforts.

Reporters learned that Caterpillar has become one of the world's leading manufacturing companies, annually recycled about 2 million parts in the global. Because remanufacturing can save 70% of the parts, as well as 80% of water, electricity and other energy resources consumption can reduce more than 60% of the cost, and thus obtained the attention by Caterpillar. 68 Caterpillar factories in 17 countries currently engaged in remanufacturing.

Caterpillar in China has established two manufacturing companies - Caterpillar Remanufacturing Industry (Shanghai) Co., Ltd and Yuchai Remanufacturing Industry (Suzhou) Co., Ltd. The former produce pump, motor and engine parts. Offer Service for parts remanufacturing business of the region, it while also providing services to external customers and other Chinese Carter business units. Latter was run by Guangxi Yuchai and Caterpillar joint venture enterprise.

 In fact, several years ago, Richmond had said that the next decade global remanufacturing market will reach 100 billion U.S. dollars. China may become the largest market in the field. Richmond told the reporter, remanufacturing is one of the fastest-growing businesses in Caterpillar. Remanufactured products have reduced costs for customers, and benefit for the environment, increasing in more business opportunities. Caterpillar in China further promotes the remanufacturing business development.

It is reported Caterpillar remanufacturing business has been extended from the eastern region to the western region of China, in July this year, Caterpillar Remanufacturing begin to layout southwest.

Richmond said, remanufacturing policy plays a key role in China. Before in 2005, re-manufacturing is a restricted industry, and later it comes to realize the great significance for the achievement of sustainable economic development, which has now become encouraged industry. But it is still not perfect in terms of standards, distribution, tax policy, may take a long time to solve these problems.