Scrap car recycling - the industry needs to make its voice heard

2020-04-21 05:33:12

Guide language: as of June 2016, China's vehicle population is 184 million, nearly 10 million scrapped vehicles, from the traditional recycling mode, dismantling mode, to the traditional business mode, scrapped vehicle recycling and dismantling industry in all aspects to change, and this change has been urgent.

On September 19, the decision of the state council on revising the > administrative measures for the recovery of scrapped automobiles (draft for comments) was officially released. The auditing department of the recovery of scrapped automobiles will be changed from the economic and trade administrative department to the competent department for the recovery of scrapped automobiles and the environmental protection department, and the recovery of scrapped automobiles will no longer be included in the management of special industries.

In terms of scrapped automobiles recycling enterprise qualification, paper weakening of registered capital in the current regulations and the specific requirements of the site area, the number of people, emphasized the enterprises have to conform to the environmental protection laws, regulations and standards of waste storage and processing equipment, facilities, and elv dismantling activities that meet the needs of professional and technical personnel, and improve the internal management system and dismantling operation specification.

The biggest highlight of the draft is to allow scrapped car engine, gearbox, front axle, rear axle, frame and other "five assembly" to be sold to remanufacturing enterprises, but in the current regulations only as scrap metal forced furnace.

Recently, the association of China materials recycling association vice President and secretary general gao yanli conducted an exclusive interview.

Change is imperative

By the end of June 2016, the vehicle population in China exceeded 184 million, ranking second only to the United States in the world. From 2006 to 2010, the sales volume of China's automobile industry grew rapidly and the vehicle population took shape. According to the vehicle retirement period of about 10 years, the next few years may usher in the first vehicle retirement peak.

As the highest regulation of the industry, the state council issued the management measures for the recovery of scrapped automobiles no. 307 in June 2001, which plays an irreplaceable role in the development of the recovery and dismantling industry of scrapped automobiles in China.

On July 19, 2010, the State Council legislative affairs office to published on the < scrapped motor vehicles of retrieving and dismantling regulations (draft) > public advice notice to try to modify the failed for the first time, published on September 19th, the State Council on amending the < scrapped automobiles recycling measures for the administration > decision (draft) "has been amended is against the regulations of the second.

Specifically, the 2010 draft was marked by the revision of the document's name to highlight "motor vehicles", including cars. This time, the document's name is again defined as "scrapped cars", which also reflects some subtle changes in industrial policy.

In addition, the September 19 version of the document returned the "regulations" to the "measures" again, which is less strong than the 2010 version of the "measures" to the "regulations" in terms of regulation, which also caused a lot of suspicion in the industry.

At this point, gao yanli believes that no matter "measures" or "regulations", as long as the laws and regulations issued by the state, that has the effect of administrative, laws and regulations, in the absence of higher laws and regulations, this is the highest law to guide and regulate the development of the industry, all must be implemented in accordance with the requirements of laws and regulations.

"In fact, for the industry, what should be paid more attention to is the content of the regulations rather than its form of expression -- no matter the method or the regulations, they have the same effect on the industry binding force, there is no obvious and essential difference in the implementation, but the key is to see the implementation.

Gao yanli said that the industry's response to the draft is very strong and positive, and the most important thing is whether it is in line with the industry's reality, whether there is executable, implementation can be in place, and the relevant functional departments can do their duty.

"The most important thing is for the industry to make its voice heard and come up with practical ideas and Suggestions. Overall, the industry has welcomed the draft."

In fact, the implementation of order 307 has been a little too long -- 15 years have passed since the date of its enactment, and the development and changes of the entire industry have been worthy of the attribute of "changing the world".

Gao Yanli thinks, this responsibility cannot be completely attributed to one sector: "China's fast economic development, the development of the industry situation change is too fast, some terms is still in research stage may have begun to become out of date, some are too controversial, and therefore cannot be launched as scheduled, but on the other hand it also highlights the industry development with each passing day, as the industry enterprises to build up your confidence."

No matter what kind of policy is introduced, it is better than no policy at all, she stressed, because the 307 order has been difficult to adapt to the rapid development of the industry, and even to some extent has been restricting the development of the industry.

"Objectively speaking, the difficulty of issuing policies is also partly related to the rapid development of the industry -- after a long period of consultation and expert discussion, policies are often found out to be out of date before they are formally launched, so they have to enter a new round of consultation."

She points out that few people can accurately predict the development of the industry in advance, and even a few experts who make bold but proven accurate statements at the time are not enough to influence national industry policy.

"National policies must be made on the basis of facts and in the service of reality, so there will be some advance, but never much." "It is also a wake-up call for national policy making models," she said.

For the opinion draft the biggest highlight, is the biggest point of the five assembly release, gao yanli refers to two modes - conditional release and unconditional release.

"Conditional release refers to the old engine has reached the service life, scrapped five assembly, can only be sold to the remanufacturing enterprises recognized by the state.

"Unconditional release is a complete release, such as some accident car is not involved in the five intact assembly and parts can be reused, can be completely free to sell to anyone.

While suggesting unconditional liberalisation rather than the elimination of barriers such as corporate qualifications, she admits that it may still be difficult to get things right: "implementation is likely to be a combination of the two."

Gao Yanli special points out, China resources recycling association (the association), according to research at present is not only a remanufacturing enterprise, car repair shop in the consumption of second-hand spare parts, auto 4 s shops is also one of the biggest buyers of: "4 s store to buy the main is the car in front of the four doors and hood and trunk lid, bumper non-critical parts, but the amount is very large."

She admitted that in the recent inspection of a number of scrap car recycling and dismantling enterprises, regardless of their size have built five assembly warehouse, and have been actively storage: "some of the enterprises of the warehouse, even seems to date back to a few years ago, everything is ready, only the arrival of [the measures]."

According to the statistics of the association, the sales volume of second-hand auto parts in 2015 is 570 million yuan. After the release of the five major assemblies in the future, the second-hand parts market will see an explosive growth. At this point, she believes that this is not only a good channel to promote consumption, but also a certain role in promoting the national economy.

For the release of the five assembly after the "car" will be popular, although gao yanli does not deny the existence of such incidents in some remote areas, but it will never become the mainstream, do not worry.

"The auto industry is one of the fastest growing industries in China. Currently, it has realized a complete industrial chain with high, medium and low-end configuration. Cars have already become daily necessities in the homes of ordinary people.

At this point, she emphasized that with the legalization of the five major assemblies into the market, the value created by the remanufacturing and reuse of auto parts is not much lower than the illegal assembly car, and is reasonable, legal operation, I believe that the enterprise itself will make a choice.

"For example, the overall quality of scrapped cars in Beijing is the highest in the country, and many of them have even passed the annual inspection of the same year. These cars can be used as second-hand cars in terms of quality, but once accidents or disputes are found after the scrapped cars are sold, the relevant enterprises will be severely punished. And the profit from selling the vehicle is no more or less than the profit from selling the parts, so it's not worth the money."

She stressed that regardless of the final regulations, the most important work of the association is to work out relevant industry standards as soon as possible, prepare for the release of parts for sale, and promote the recycling and reuse of scrapped car parts.

"There will be five parts before the end of the recycling and reuse a reuse standards, and through the national standard committee member societies of the public, such as to what qualifies as a standard for remanufacturing product, or to sell shoddy product liability system, traceability system, etc., will be worked out by national policy."

"For example, the reuse of four doors and two LIDS -- neither critical parts, its use cost is far lower than the maintenance after serious damage, and more importantly, it reduces the waste of resources, which is a good thing."

She revealed that these standards are based on the successful experience of the United States, Europe, Japan, South Korea and other large circular economy countries, and on the basis of consulting a large number of industry enterprises' opinions and Suggestions, will be combined with China's actual launch of international advanced standards.

It is reported that by the invitation of the association of European automobile industry, there will be a group of Chinese experts organized by China materials recycling association to visit Europe in the near future, for the "scrap car recycling management measures" to make preliminary preparations, the industry reform is imperative.

Change is urgent

Although the fund subsidy tardy hard to arrive at place and "the method" again break an engagement to cast a shadow to the industry, but the reality shows that these adverse factors did not really hit the scrap car recycling dismantling, the overall situation of the market is far better than expected.

In 2015, the number of scrapped motor vehicles recovered and dismantled in China reached a record high. In the first three quarters of 2016, it reached a new high of more than 5%, and it is expected to be higher than last year for the whole year.

Gao pointed out that by the end of June, the number of motor vehicles in China had reached 285 million, the economic aggregate was growing and people's living standards were improving. The result of all these factors is that the number of scrapped cars is still increasing whether the government takes subsidies or not.

"For example, tianjin xinneng renewable resources co., ltd. recovered and dismantled 59,000 scrapped cars in the first three quarters of this year, a national record, and is expected to exceed 90,000 in the whole year."

At the same time, she agrees that financial subsidies play a huge role: "after shandong province, second only to Beijing in car recycling in 2015, dropped its national ranking to 15 in the first three quarters of this year, and the top 50 recyclers dropped from eight to one in the first three quarters."

She points out that for provinces with volatile recycling volumes, such as shandong and zhejiang, there may be a "live and live" effect: "for example, some cars that can still be scrapped or scrapped late are scrapped in advance because of government subsidies."

In fact, scrap-car recycling subsidies are only temporary incentives for local governments, not institutionalised or permanent. They are based on actual conditions and needs, with the exception of Beijing.

"Beijing has been subsidizing the recycling of scrapped cars since 2009, but its high subsidy of 8,000 yuan per car before 2015 is unattainable by other provinces and cities. Even if it goes down to 6,000 yuan in 2016, it is unmatched elsewhere."

In addition, the number of motorcycles recovered this year has dropped significantly compared to 2015, indicating that the proportion of cars among scrapped vehicles has increased.

Gao Yanli thinks, in addition to the factors of fiscal subsidies, motorcycle is the underlying cause of a drop in all parts of the country "ward" strength is on the rise, leading to reduction in the number of motorcycles is absolutely in recent years, the other electric bicycle for increasing role instead of motorcycle, motorcycle market continued to reduce the number of new car.

It has been 15 years since the state council issued the regulation no. 307 on the collection of scrapped cars. The industry is now in a different mood from that of the previous year.

"Compared with before 2009, the focus of the industry has changed significantly. The topics of 'qualification control' and 'regional control' are no longer the focus, and the focus is more on environmental protection and safe production. The awareness of the industry as a whole has been significantly improved."

"It is absolutely not acceptable for some companies not to make progress, not to develop themselves well, but not to want other companies to join in, just to make monopoly profits under the protection of the state."

"There are also companies that talk about, for example, controlling the number of companies in one city, but this is actually a fear of competition in the market. We welcome all those who are interested in entering the scrap car recycling and dismantling industry and the renewable resources industry. The future is to achieve survival of the fittest through full competition and never protect backward enterprises and backward production capacity."

"The scrappage car recycling and disassembly industry used to be a 'first batch, then build' industry. Now it is a 'first build, then build' industry. As long as the completed factory meets relevant requirements, any enterprise can enter this industry."

At the same time she also confessed, retrieving and dismantling scrapped automobiles industry while it is true is not a small profit business, but profit is limited, and that is so far very few month big enterprises involved in the reason: "either upstream or downstream of large steel mills and automobile manufacturing enterprises have obtained qualification, but business is very general, yet even there is no organized production."

In this regard, gao suggested that although the implementation of the "qualification" of the industry management, but the industry entry threshold is necessary to raise, especially in the environmental protection and safety of production.

"There is a similar problem with the environment, but it is a hard indicator - companies that are not up to scratch have to get out, and to protect is to protect those that are behind. This is a very tightly controlled area and it will be a red line in the future."

According to disclosed, at present, the ministry of environmental protection inspection team is in hebei, shanxi and other provinces to carry out the most stringent environmental supervision, among which hebei several environmental unqualified enterprises may become scrapped car recycling and dismantling industry revoked "scrapped vehicle recycling and dismantling qualification certificate" the first case.

In the classified management directory of environmental impact assessment of construction projects, which has been implemented since June 2015, the disassembly classes of automobiles in the original waste resources recovery, processing and recycling projects have been updated to the waste automobiles in the waste resources (including biomass) processing and recycling projects, and the environmental impact statement is required to be submitted. However, only 5% to 10% of enterprises in the whole industry have completed environmental impact assessment, which is far from the national environmental protection requirements.

Gao Yanli noted, for the air pollution caused by one of the main reason is that the number of cars, but the root cause should be caused by automobile fuel quality closes nevertheless, consists of the car and depletion in the role is not as big as I thought: "compared with the huge car ownership, consists the number of cars, automobiles is minuscule."

In addition to environmental pollution, safety in production will be the next focus of scrutiny: "in the future, traditional and barbaric car disassembly, such as hammers and acetylene cutting, will be banned."

She points out that, although many dismantling enterprises built tall, beautiful plants, but not many modern equipment and still give priority to with artificial disassemble, and in the actual dismantling is still the basic with the method of open operation, one of the important reasons is acetylene cutting brought about by the poisonous and harmful gas emissions.

"Our next priority is to 'put out the fire' and prohibit open fire operations." She stressed that the future will increase the use of mechanized equipment, manual work will be used mainly for refined dismantling.

In fact, although the refined dismantling project has long been the goal of dismantling enterprises in pursuit of transformation, few of them have actually achieved it. At present, the profit model of scrap car recycling and disassembly industry is still single, which mainly focuses on selling scrap steel. The value of many parts has not been deeply explored, while the direct reuse rate of scrap car in foreign countries can reach 35%.

Therefore, it is necessary to solve the disassembly problem of the same disassembly enterprise in the face of numerous brands and types of scrapped cars. The disassembly equipment is required to be highly flexible, and can automatically or quickly manually adjust the station, tool or working parameters for different types of cars, so as to ensure a higher work efficiency under the premise of flexibility.

However, both the fine disassembly and the flexible manufacturing of disassembly equipment require the disassembly manual provided by the automobile manufacturers that have the best understanding of automobiles. But so far, Chinese car manufacturers have not provided any disassembly manuals.

Gao yanli discloses, at present China USES scrap car disassembly manual mother this is provided by association of European automobile industry, although its content can keep pace with Europe, but it is limited to the car of European brand, limitation is very big.

"Very detailed information, such as a component of dismantling requires several steps, each step needs what kind of tool, even a layman can also be clear at a glance, this brings to the elv dismantling industry in China is not only technology, but also the profit - always a hammer down, things can sell down 200, refinement and dismantling parts can now sell for $5000."

European version, however, dismantling manual does not include represent the future development trend of automobile's hybrid and electric vehicles, although currently both because of the time has not yet entered the large-scale BaoFeiQi, but scattered car accident needs to be done, such as scrap processing of vehicle has become more and more, and this field not only has no rules, scrap car dismantling enterprises don't have any experience, frequent accidents in the actual operation.

Due to the stranger, for the new vehicles have open car enterprise employees by a car while disassemble accident electric high voltage battery blow fly, and cut down the battery cannot do further processing: "similar to the very real, and in urgent need of standardization issue and scrap cylinders, etc., the processing of natural gas vehicle production enterprises would have to be closely cooperate and assist."

At this point, she especially stressed that, as an important part of the circular economy, it is urgent to develop extended producer responsibility system for automobile manufacturers: "this is the successful experience of Europe, America, Japan and other developed countries, and it is also the social responsibility that all Chinese manufacturers must bear."

She said the association had previously submitted its own amendments to the national development and reform commission and other relevant departments, and the industry was eager to see the extended producer responsibility system reflected in the new measures, but unfortunately it did not.

At this point, gao yanli said that the promulgation of the measures will promote the industry to move towards legalization and standardization faster and better. And the industry's technological progress, environmental protection facilities, safety production will also be more perfect.

"The standardization system will run through the whole process of enterprise operation and management and refined disassembly. The recovery price of scrapped cars will be more flexible and the recovery pricing model will be completely changed. The sales of parts will become an important part of driving domestic demand."

She stressed that in the future, while upgrading the industry's equipment, technology and management level, we should encourage the advanced, eliminate the backward, do in and out, there will be laws will be followed, law will be prosecuted.

According to gao yanli, there are four problems in the scrap car recycling and dismantling industry: high production cost; Few acquisitions; The price fluctuation caused by the long disassembly cycle of recycled materials sold is large; However, few enterprises can enjoy the new tax refund policy issued by the ministry of finance. The total tax payment of the industry reached 609 million yuan in 2015.

"In terms of industry itself, the majority of dismantling internal lack of information rights management, general management level backward problems, there is no information management system and advanced streamline, standardization of the management idea and enterprise in combination with the actual operation, caused the enterprise existing work efficiency is low, enterprise operating costs are high."

She points out that the scrappage industry is still lagging behind in terms of ideas and management, which is the biggest problem: "the idea that you don't want to go ahead and do a bad job, but you don't want others to come in and do it well, and you want to set a barrier to keep others out, is the most dangerous and the most undesirable."

In addition, has long been scrappage procedures processes are taking total artificial, or all of the paper records and statistical methods to complete the whole car scrappage procedure, the traditional way of working error rate is higher, the Ministry of Commerce website information submitted after the frequent change of situation, serious increased workload system and elv dismantling enterprises by the Ministry of Commerce, at the same time also delayed the scrappage formalities complete.

At this point, gao yanli revealed that, led by the China materials recycling association, a mobile APP APP for citizens to scrap self-service cars will be launched in the near future for trial operation. It is also the first APP APP for scrapped cars in China.

"This work has been strongly supported by the Beijing municipal commission of commerce, the Beijing municipal public security bureau, the Beijing municipal traffic administration and other relevant departments, and will be promoted by these departments. For example, the APP can be downloaded directly from their official websites."

It is reported that the regenerative scrapped car mobile APP also has the functions of second-hand parts retail and so on. It is a mobile terminal platform with both service and commercial functions, and has a broad market prospect in the future.

Because of this, this platform has also won the favor of overseas enterprises: "there is a huge demand for second-hand auto parts in Europe and the United States. This project is supported by some auto parts sales enterprises in the United States and Europe, and most of the second-hand parts will be exported in the future.

"In the new era environment, scrap car recycling and dismantling industry is facing new requirements and new management mode. It should seize the opportunity to conduct research on green recycling and disposal of scrapped cars and their industrial management mode, comply with the requirements of circular economy development, and follow the road of sustainable development in China.

Ms gao stresses that the industry needs and must change: "everything from the traditional recycling model to the dismantling model to the traditional way of doing business needs to change, and this change is urgent."