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Caterpillar, eager to transplant in China "remanufacturing business model," finally picked up the "friends."
On September 23, the reporter of "Daily Economic News" was informed that Caterpillar, the world's largest construction machinery manufacturer, wanted to join forces with Weichai to enter the engine remanufacturing field.
“At the moment, the negotiations between the two sides are coming to an end. We expect to sign a contract in October this year. Whether or not a joint venture will be established is still in secrecy.†A person familiar with the matter disclosed that on August 19th this year, Caterpillar Group President Douglas Oeborghmann made a special trip. We went to Weichai Power to investigate and negotiate with Tan Xuguang, Chairman of Weichai Power.
“In the automotive engine field, the demand for remanufacturing is showing a growth trend. Caterpillar hopes to discuss cooperation with Chinese manufacturers and jointly develop the market,†said a department manager of Weichai Power.
The so-called remanufacturing is a dismantling and renovating of used products, and then assembled into a production process with the same technical performance as the original product. It is estimated that the size of China's remanufacturing market can reach 10 billion U.S. dollars each year. The remanufacturing business accounted for nearly 4% of Caterpillar's global turnover.
In 2008, Caterpillar established the third global remanufacturing center in Shanghai, covering an area of ​​25,000 square meters. In the first half of 2009, Caterpillar established remanufacturing recovery points for consumer terminals in Shunde and Chengdu. However, its promotion of remanufacturing business in China is not smooth.
Weichai Power registered and established Weichai Power Remanufacturing Company in April 2008. According to the person in charge of Weichai Power, the old engine was recovered through the original sales service channel, and then remanufacturing R&D and trial production were performed in the old factory area. The company has already sold the first batch of remanufactured engines, and there have been no quality complaints.
Li Feng, general manager of Weichai Power Remanufacturing Co., Ltd., said that the company will expand its use of engines for automobiles to engines for engineering, marine and power generation. At the same time, it carried out business such as remanufacturing of transmissions and axles. “From the current situation, we hope that the state will introduce relevant incentive policies, especially tax benefits.â€