end-of-life vehicle recovery in china

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Vol. 61 No. 3 • JOM 45 www.tms.org/jom.html Vehicle Recycling Feature How would you… …describe the overall significance of this paper? About 43 million vehicles were on the roads of China by the end of 2007 with production and imports increasing at a rapid rate. Upwards of 5 million vehicles in China will be reaching the end of their useful lives by the year 2010, according to the latest estimates. This represents a challenge and an opportunity for the country’s end-of-life vehicle (ELV) recycling industry. …describe this work to a materials science and engineering professional with no experience in your technical specialty? This article provides an insight into current thinking within China about ELV recycling. Included in the discussion are vehicle recovery activities such as management systems for recoverability and banned/restricted substances of automotive products, innovation in parts remanufacturing, non- governmental organization handling ELV recovery, and vehicle-recovery- related science and technology collaboration in Eastern Asia. …describe this work to a layperson? End-of-life vehicle recovery activities in China have achieved significant progress, especially after a broad investigation and discussion of the EU “ELV Directive” in 2006–2007. There is emerging emphasis in China on sustainable ELV recovery through extended producer responsibility and recovery in the whole life cycle of products. This paper reports the progress of ELV recovery activities in China today, and explores current thinking and innovation inspired by the EU ELV directive. Implementation of the EU’s end- of-life vehicle (ELV) directive eight years ago had a profound influence on China’s automotive industry, leading to the consideration of concepts such as extended producer responsibility. It also provided some impetus for ELV recycling industry developments within China. This article provides insight into current thinking within China about ELV recycling as well as vehicle recovery activities. INTRODUCTION About 43 million vehicles were on the roads of China by the end of 2007, with production and imports increasing at a rapid rate. An estimated three to six million vehicles should have reached the end of their useful lives in the previ- ous year but 2006 data reveal that only 380,000 were dismantled. Upwards of 5 million vehicles in China will be reaching the end of their useful lives by 2010, according to the latest estimates. A figure of this magnitude represents both a challenge and an opportunity for China’s end-of-life vehicle (ELV) recy- cling industry. Implementation of the EU’s ELV di- rective eight years ago had a profound influence on China’s automotive in- dustry, leading to the consideration of concepts such as extended producer re- sponsibility as well as sustainable man- ufacturing and sustainable consump- tion. It also provided some impetus for ELV recycling industry developments within China. The developing legislation and spec- ification system on ELVs could be re- garded as response actions of China to- ward EU ELV directives, from national law to specifications. It is expected that a register of recoverability and use of restricted/banned substances in new au- End-of-Life Vehicle Recovery in China: Consideration and Innovation following the EU ELV Directive Ming Chen and Fan Zhang certain quotas relating to recoverability and use of restricted substances. However, China’s ELV recovery in- dustry is still facing some significant issues, not least of which is the fact that improper disposal of hazardous substances and a lack of environmen- tal protection measures are common in vehicle dismantling operations. Given China’s abundant labor resources, large-scale automated recycling is deemed unsuitable whereas used parts remanufacturing provides development opportunities for China’s ELV recy- cling industry. However, the transition of the business model from scrap steel sales to remanufacturing represents a real challenge because it is unrealistic to establish a nationwide automotive parts remanufacturing and reverse lo- gistics system relying solely on dis- mantling enterprises. This article provides an insight into current thinking and activities of ve- hicle recovery within China. BACKGROUND China has become the third larg- est country for auto production and the second largest for auto consump- tion. In 2007, the auto output in China was 8,887,000 vehicles, an increase of 22.1% over the previous year. By the end of 2007, the volume of in- use vehicles was 43 million in China. Production and import volumes were increasing rapidly (see Figures 1, 2, and 3). Based on their life times, by the end of 2006, about 3.0~6.0 mil- lion should have reached the end of life. However, data from 2006 shows that only 0.38 million in total were dismantled in China (Table I), equal to about 1% of the in-use volume of 2006. The common length of use for passenger vehicles except for taxi cabs tomotive products will be launched in early 2009. By the following year, it is estimated, all new automotive products sold in China will be forced to abide by

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Page 1: End-Of-Life Vehicle Recovery in China

Vol. 61 No. 3 • JOM 45www.tms.org/jom.html

Vehicle Recyclingfeature

How would you……describe the overall signifi cance of this paper?

About 43 million vehicles were on the roads of China by the end of 2007 with production and imports increasing at a rapid rate. Upwards of 5 million vehicles in China will be reaching the end of their useful lives by the year 2010, according to the latest estimates. This represents a challenge and an opportunity for the country’s end-of-life vehicle (ELV) recycling industry.

…describe this work to a materials science and engineering professional with no experience in your technical specialty?

This article provides an insight into current thinking within China about ELV recycling. Included in the discussion are vehicle recovery activities such as management systems for recoverability and banned/restricted substances of automotive products, innovation in parts remanufacturing, non-governmental organization handling ELV recovery, and vehicle-recovery-related science and technology collaboration in Eastern Asia.

…describe this work to a layperson?

End-of-life vehicle recovery activities in China have achieved signifi cant progress, especially after a broad investigation and discussion of the EU “ELV Directive” in 2006–2007. There is emerging emphasis in China on sustainable ELV recovery through extended producer responsibility and recovery in the whole life cycle of products. This paper reports the progress of ELV recovery activities in China today, and explores current thinking and innovation inspired by the EU ELV directive.

Implementation of the EU’s end-of-life vehicle (ELV) directive eight years ago had a profound infl uence on China’s automotive industry, leading to the consideration of concepts such as extended producer responsibility. It also provided some impetus for ELV recycling industry developments within China. This article provides insight into current thinking within China about ELV recycling as well as vehicle recovery activities.

introDUction

About 43 million vehicles were on the roads of China by the end of 2007, with production and imports increasing at a rapid rate. An estimated three to six million vehicles should have reached the end of their useful lives in the previ-ous year but 2006 data reveal that only 380,000 were dismantled. Upwards of 5 million vehicles in China will be reaching the end of their useful lives by 2010, according to the latest estimates. A fi gure of this magnitude represents both a challenge and an opportunity for China’s end-of-life vehicle (ELV) recy-cling industry. Implementation of the EU’s ELV di-rective eight years ago had a profound infl uence on China’s automotive in-dustry, leading to the consideration of concepts such as extended producer re-sponsibility as well as sustainable man-ufacturing and sustainable consump-tion. It also provided some impetus for ELV recycling industry developments within China. The developing legislation and spec-ifi cation system on ELVs could be re-garded as response actions of China to-ward EU ELV directives, from national law to specifi cations. It is expected that a register of recoverability and use of restricted/banned substances in new au-

end-of-Life Vehicle recovery in china: consideration and innovation following the eU eLV DirectiveMing Chen and Fan Zhang

certain quotas relating to recoverability and use of restricted substances. However, China’s ELV recovery in-dustry is still facing some signifi cant issues, not least of which is the fact that improper disposal of hazardous substances and a lack of environmen-tal protection measures are common in vehicle dismantling operations. Given China’s abundant labor resources, large-scale automated recycling is deemed unsuitable whereas used parts remanufacturing provides development opportunities for China’s ELV recy-cling industry. However, the transition of the business model from scrap steel sales to remanufacturing represents a real challenge because it is unrealistic to establish a nationwide automotive parts remanufacturing and reverse lo-gistics system relying solely on dis-mantling enterprises. This article provides an insight into current thinking and activities of ve-hicle recovery within China.

BackgroUnD

China has become the third larg-est country for auto production and the second largest for auto consump-tion. In 2007, the auto output in China was 8,887,000 vehicles, an increase of 22.1% over the previous year. By the end of 2007, the volume of in-use vehicles was 43 million in China. Production and import volumes were increasing rapidly (see Figures 1, 2, and 3). Based on their life times, by the end of 2006, about 3.0~6.0 mil-lion should have reached the end of life. However, data from 2006 shows that only 0.38 million in total were dismantled in China (Table I), equal to about 1% of the in-use volume of 2006. The common length of use for passenger vehicles except for taxi cabs

tomotive products will be launched in early 2009. By the following year, it is estimated, all new automotive products sold in China will be forced to abide by

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JOM • March 200946 www.tms.org/jom.html

is 15~20 years, and for private use pas-senger vehicles, there is no limit. For commercial vehicles, the common use period is 15 years except for mini-com-mercial vehicles (Table II). Due to the rapid development in China in 2010 the estimated volume of in-use vehicles is 55 million and ELVs, 4.8 million. The facts illustrate the promising future of the ELV recycling industry in China.

ELV Take-Back and Treatment in China

There are about 356 qualified ELV dismantlers approved by the state ad-ministrative department, and more than 800 take-back stations in cities all over China. In all, 16,000 people are em-ployed in the industry, which has a dis-mantling capacity of 1.2 million vehi-cles per year. Auto recycling provides more than 200 million tons of scrap steel, 50,000 tons of non-ferrous met-als, and a large amount of waste rubber and plastic each year. Experience has shown that China can manage the ELV dismantler administrative qualification system and control the number of en-terprises. The national system not only provides governmental supervision and administration, but also encourages ELV dismantlers toward economic ef-ficiency and technology innovation. However, the Chinese ELV treatment industry still faces significant issues. First, the existing policy, regulation, and technical specifications system is not fit for the development of the ELV treatment industry. For example, Decree No. 307 of the State Council “Management Measures on Take-back of Scrapped Automobiles” requires that the “five supervised assemblies of vehicle” including engine, power trans-mission box, steering, axle, and chas-sis should be destroyed and recycled as metal materials. This decree is contra-dictory to the requirement for develop-

Table I. Number of End-of-Life Vehicles in China (2002–2006)

PassengerYear Total Vehicles Trucks Others

2002 414,543 207,420 195,524 11,5992003 956,797 344,453 586,816 25,5282004 541,539 325,243 203,830 12,4662005 562,025 287,529 263,659 10,8372006 380,560 224,561 147,646 8,353

ing used-parts remanufacturing. Another problem is that in the manu-al dismantling processes, improper dis-posal of hazardous substances is com-mon. For example, mainly for scrap metal dismantling, it is common to use an oxygen-torch cutting process in an open dismantling yard. In addition, the dismantlers often do not have sufficient specialized tools and equipment, such as for waste liquid collecting, ELV dis-mantling, material sorting, and shred-ding facilities. Hazardous substances such as lead, cadmium, mercury, hexavalent chromium, and other heavy metals usually are improperly treated as common waste, causing heavy metal

pollution. Finally, the industry does not have sufficient environmental protec-tion measures, such as those requiring separate collection and treatment facili-ties for waste liquids; oil and water sep-aration facilities; and ground seepage control measures. The result is severe secondary pollution from the manual dismantling facilities. Also, the reuse and remanufacturing of parts is not popular. Although the used parts can be sold by dismantlers, the sales of “five supervised assemblies of vehicle” are prohibited. The circula-tion of used auto parts in China is un-derdeveloped because of the absence of related policies and regulations and the

Figure 3. The vol-ume of auto imports in China (1991~ 2006).

Figure 2. The volume of auto production in China (1991~ 2007).

Figure 1. The volume of in-use vehicles in China (1991~2007).

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Table II. Current Fixed Years for Vehicle Use and for Compulsory Dismantling in China

Fixed Years for Fixed Years Extended Years Technical Inspection Intervals CompulsoryVehicle Type for Use for Use during Use Life Dismantling

Lessthan9(included)SeatsNon- 15 Nolimitfor Within6years,onceeverytwoyears; NoBusinessUsePassengerVehicle extension 6–15years,onceeveryyear; morethan16years,twiceeveryyear

Morethan9SeatsNon-Business 10 10 Within10years,onceeveryyear; 20UsePassengerVehicle 10–15years,onceeveryyear; 16–20years,twiceeveryyear

PassengerVehicleforTourism 10 10 Within5years,onceeveryyear; 20 5–10years,onceeveryyear; morethan10years,twiceeveryyear

BusinessUse(notfortaxi) 10 5 Within5years,onceeveryyear; 15PassengerVehicle 5–10years,onceeveryyear; morethan10years,twiceeveryyear

Morethan20(included)Seats 8 4 Within5years,onceeveryyear; 12PassengerVehicleforTaxiUse 5–8years,onceeveryyear; morethan8years,twiceeveryyear

Lessthan19(included)Seats 8 Noextension Within5years,onceeveryyear; 8PassengerVehicleforTaxiUse 5–8years,twiceeveryyear

MiniCommercialVehicle 8 Noextension Within8years,onceeveryyear 8

LightandHeavyCommercialVehicle 10 5 Within10years,onceeveryyear; 15 morethan10years,twiceeveryyear

TruckwithTrailer,MineTruck 8 4 Within8years,onceeveryyear; 12 morethan8years,twiceeveryyear

CraneTruck,FireTruck,DrillingTruck,etc. 10 Properextension Within10years,onceeveryyear; NoSpecialPurposeVehicle morethan10years,twiceeveryyear

FullTrailer 10 5 Within10years,onceeveryyear; 15 morethan10years,twiceeveryyear

Semi-Trailer 10 5 Within10years,onceeveryyear; 15 morethan10years,twiceeveryyear

Semi-TrailerTractor 10 5 Within10years,onceeveryyear; 15 morethan10years,twiceeveryyear

Others 10 5 Within10years,onceeveryyear; 15 morethan10years,twiceeveryyear

cheap price of new parts. The extended producer responsibility (EPR) of vehi-cle manufacturers is not clear and there is insufficient communication between auto manufacturers, dismantlers, and other stakeholders.

Sustainable Manufacturing in China

The 1.3 billionth citizen of China was born in Beijing on January 6, 2005. Although the baby’s birth came ten years after China’s 1.2 billionth cit-

izen and four years later than experts’ predictions, the huge population and consequent natural resource scarcity, energy consumption, CO

2 emissions,

and climate change became weighty responsibilities for China. On the other hand, the release and implementation of numerous EU environmental direc-tives on products had a significant in-fluence on the manufacturing industry in China. Since 2004, China has re-leased such measures as Regulation on the Recycling and Treatment of Waste

Household Electrical and Electronic Appliances (China WEEE), Restric-tion of Hazardous Substances (China RoHS), China ELV, and the Energy-Using Products directive (China EUP): • In response to the EU ELV direc-

tive, the National Development and Reform Commission (NDRC) released its “Automotive Products Recycling Technology Policy” in 2006

• In response to the EU WEEE direc-tive, the NDRC released “Regula-

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tion on Take-Back and Disposal of Waste Home Appliances” in 2004 and the former State Environ-mental Protection Administration released “Measures on Pollution Prevention from Waste Electri-cal and Electronic Equipment” in 2005

• In response to the RoHS Directive, the former Ministry of Informa-tion Industry released “Manage-ment Measures for the Prevention & Control of Pollution from Elec-tronic Information Products” in 2006

• As a response to the EUP & IPP, the General Administration of Quality Supervision, Inspection, and Quarantine and Standardiza-tion Administration Commis-sion released national standards: “Environmentally conscious de-sign—Integrating environmental aspects into design and develop-ment of electro-technical prod-ucts (GB/T 21273-2007, idt IEC Guide 114:2005)” and “Environ-mental management—Integrat-ing environmental aspects into product design and development (GB/T24062—2007, idt ISO/TR14062:2002)” in 2007

Further, the concept of sustainable manufacturing is emerging in China as a promising approach toward sustain-ability more than as a solution to en-vironmental issues. Sustainable manu-facturing is the science and technology of manufacturing based on the idea of sustainable development, which im-proves economic growth and minimiz-es resource consumption and environ-mental pollution at all phases of the life cycle by “reduce, reuse, and recovery.” This approach can enable present and future generations to live in a society with abundant resources and a good en-vironment. The auto industry plays an important role in the national economy. As a large consumer of natural resourc-es, the auto industry is also concerned with the issue of sustainable develop-ment. The auto manufacturing industry involves large-scale resource utiliza-tion and wide demand for resources, and many affiliated enterprises are in-volved. Since the beginning of the 21st century, the constraints imposed by limited resources on the development

of the auto industry have become ever more apparent.

ManageMent response to the eU “eLV

DirectiVe”

The implementation of the ELV Di-rective (2000/53/EC, Directive of the European Parliament and of the Coun-cil of 18 September 2000 on end-life-vehicles) has deeply and broadly influ-enced the Chinese auto industry. The automakers are considering the fol-lowing measures: EPR, recovery sys-tems in the total life cycle, providing dismantling information, prohibiting hazardous substances, green procure-ment and sustainable consumption. In addition, the Chinese auto industry is considering taking several ELV re-cycling measures. First, for resource recycling, the supervision of govern-ment and environmental protection should be emphasized. Next, disman-tling in China must be consistent with China’s national conditions. China has abundant labor resources. The disman-tling operation mode in China should be: “mechanization tools + manual dismantling.” Large-scale automatic recycling equipment is unsuitable for China’s national conditions. The emerging used-parts remanufac-turing industry is a business model for the transition of the Chinese ELV recy-cling industry from scrap steel sales to remanufacturing. The Chinese govern-ment requires sustainable development of the manufacturing industry. But this is a real challenge because establishing a nationwide distributed automotive parts remanufacturing and reverse lo-gistics system only relying on disman-tling enterprises is not realistic. The responsibility of auto product manufacturers is to: • Promote design for dismantling

and design for recycling in the product design phase; promote the use of materials marking/coding systems

• Continuously improve the recov-erability of products; promote the use of environmentally friendly materials; ban hazardous sub-stances

• Product recoverability and use of restricted substances should abide by the policies and regulations

• Provide a true, accurate, and reli-able report of product recoverabil-ity and restricted substances use

• Components and raw material suppliers should bear correspond-ing responsibility

Auto Recovery Legislation Policy and Specification System

The establishing legislation and specification system for automotive products recovery could be regarded as a response of China toward EU ELV directives, from national law to detailed technical specifications, and from vehicle design to ELV recycling.

National Laws

• “Law of the People’s Republic of China on Prevention of Environ-mental Pollution Caused by Solid Waste” was enacted to prevent and control environmental pollution by solid waste, safeguarding hu-man health, safeguarding the eco-logical environment, and promot-ing the sustainable development of economy and society.

• “Law of the People’s Republic of China on Circular Economy Pro-motion” was designed to provide a legal framework for a national sus-tainable development strategy. The law requires low energy consump-tion and high resource efficiency, low emissions of pollutants, and minimal waste discharge, using the principles of reduce, reuse, and recycle. The law also requires the recycling of larger waste prod-ucts such as end-of-life vehicles and ships, and mechanical and electrical products. Incentives and penalties are included.

National Technical Policies

• “Automobile Industry Develop-ment Policy,” May 2004

• “Automobile Trade Policy,” Au-gust 2005

• “Technical Policy of Automotive Products Recovery,” February 2006

• “Administrative Measures for Pi-lot Remanufacturing of Automo-bile Parts & Assemblies,” March 2008

• “Management Regulation of ELV Take-back,” a revised Decree 307,

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in review • “Administrative Rules of Recov-

erability Rate and Forbidden Sub-stances for Motor Vehicles,” in review

Technical Specifications

• GB/T 19515-2004: “Road vehi-cles—Recyclability and recover-ability-calculation method”

• HJ 348-2007: “Environmental Protection Technical Specifica-tions for Disassembly of End-of-Life Vehicles”

• QC/T 797-2008: “Material Identi-fication & Marking of Automotive Plastic, Rubber & Thermoplastic Elastomer Parts”

• GB 22128-2008: “Technical spec-ifications for end-of-life vehicles recycling and dismantling enter-prise”

Managing Auto Recoverability Rates and Forbidden Substances

The framework of the manage-ment system for recoverability rate and forbidden substances of automo-tive products include the following substructures: administrative rules of recoverability rate and forbidden sub-stances for vehicles; an exemption list for banned/restricted substances of auto products; a proven technology list for vehicle material recovery; and op-erational system and tools to support the implementation of the management system. The administrative rules of recover-ability rate and forbidden substances for motor vehicles apply to new auto-motive products sold within China, as well as the spare parts for the after-sales maintenance and service of motor vehicles. Key points are: • Starting on January 1, 2009, the

manufacturers or the general im-port agents should start the initial examination and certification of the recoverability rate and the use of hazardous substances of new auto products

• Starting in 2010, all new auto prod-ucts sold in China should abide by the policy-provided stage targets in recoverability and restricted substances

• The recoverability of automotive

products is calculated according to related regulation or specification such as GB/T 19515-2004/ISO 22628:2002

• The proven technology of recover-able automotive materials shall be accompanied with the identifica-tion report or certificate issued by a properly qualified institution

• Banned/restricted substances in-clude lead (Pb > 0.1 wt.%), mer-cury (Hg > 0.1 wt.%), cadmium (Cd > 0.01 wt.%), hexavalent chromium [Cr (VI) > 0.1 wt.%], polybrominated biphenyls (PBB > 0.1 wt.%) and multi-bromo ether (PBDE > 0.1 wt.%)

• After January 1, 2014, the spare parts for maintenance and repair of all motor vehicles shall comply with the requirements for forbid-den substances applicable to the new vehicle types

• Punishments for violations include warning or rectification with a time limit of 3 months; temporary can-cellation of certification or tem-porary suspension of importing in addition to appropriate economic penalty

The exemption list for banned/re-stricted substances of automotive prod-ucts includes the additional substances of PBB and PBDE with four heavy metals referenced in the EU ELV direc-tive annex II. It provides for the com-prehensive consideration of alterna-tive technologies and products supply capacity of suppliers, and the time and cost required for complete replacement of restricted substances as well. The Proven Technology List for Vehicle Material Recovery was initi-ated and drafted by a research group of Shanghai Jiao Tong University. There are more than 500 proven technology sheets of 4R (reuse, remanufacturing, recycling, and recovery) in the first version based on an extensive Chinese literature investigation including eight categories of parts and materials, such as iron and steel, non-ferrous metals, engineering plastics, composite materi-als, rubber, glass, ceramics, and liquid (gas). The Automobile Materials Data Sys-tem is a controversial issue in China. The NDRC agreed that vehicle manu-facturers have the right to choose the

International Material Data System (IMDS) or China Automotive Mate-rial Data System (CAMDS), coupled with internal data systems for type ap-proving. China Automotive Material Data System is scheduled to be imple-mented in March 2009, when all auto enterprises must provide material data to meet the requirements of materi-als data management. The system will review and manage the data provided by enterprises. To reduce costs, local brand original equipment manufactur-ers (OEMs) choose to participate in the preparation of CAMDS. The Interna-tional Material Data System is another choice for local brand OEMs. Local OEMs contact Electronic Data Systems (EDS, the technology services business group of Hewlett-Packard Develop-ment Company) frequently for IMDS orientation due to their export business drive. EDS has offered IMDS training sessions in Beijing and Shanghai, and an IMDS helpdesk will be located in Wu Han. A reliable and operational approval and administrative system is very im-portant to ensure the implementation of Administrative Rules of Recoverabil-ity Rate and Forbidden Substances for Motor Vehicles. The recoverability rate and forbidden substances of auto prod-ucts will be integrated into the permit-ting management system of market ac-cess for vehicles, in addition to consti-tuting one compulsory requirement of the “Announcement on Vehicle Manu-factures and Their Products” and the administration of import of automotive products. The mode of vehicle type ap-proval over the recoverability rate and forbidden substances of auto products will be implemented in two steps: ini-tial examination and certification of the automotive product (Figure 4). For the initial examination, the manufacturer must submit a letter of application, and the competent authorities or their en-trusted technical service must conduct the examination. For the certification of automotive products, the manufac-turer must submit the letter of appli-cation, and the technical service must conduct the certification. Both the ini-tial examination and the certification of automotive products will be conducted by combining the review of documents with on-site auditing.

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aUto recoVery actiVities anD

innoVations

Auto Recovery Activities

For years, local brand and joint ven-ture OEM recycling-related activities have been regarded as strategic issues concerning the upcoming administra-tive rules of recoverability rates and forbidden substances. For example, new vehicle product recoverability rate calculation and preparing for type approval; collecting, evaluating, and confirming the parts and components complied with the substances restric-tion specification in supply chain; pro-moting design for recycling, design for dismantling and life cycle thinking in the product design phase; releas-ing “green” material specifications for product designers; compiling end-of-life vehicle dismantling manual. On March 21, 2008, the NDRC con-firmed that three auto makers and 11 parts manufacturers kicked off the na-tional pilot auto parts remanufacturing program as part of the efforts to achieve a circular economy. The tentative auto parts remanufacturing products are: engines, transmissions, generators, starters, and steering. Meanwhile, the NDRC announced five principles for the pilot program: temporarily, parts remanufacturing enterprises are not al-lowed to purchase the “five supervised assemblies of vehicle” from ELV dis-mantling enterprises; the warranty for

Table III. Fundamental Research and Pilot Programs for ELV Recovery in Shanghai

Year Project Title Financial Support

2001 InvestigationonDevelopingELV Science&Technology RecyclingandRemanufacturingin CommissionofShanghai Shanghai Municipality(STCSM)Funding2002–2004 TheKeyTechniqueInvestigation&Pilot STCSMFunding ProjectofELVDisposalinShanghai2005–2007 TheKeyTechniqueInvestigation&Pilot STCSMFunding ProjectofELVPartsRemanufacturing2006–2007 InvestigationontheELVDirectiveand ShanghaiTechnicalBarriersto China’sStrategicResponse TradeFunding2006–2009 TheKeyTechniqueInvestigationandPilot MinistryofScience& ProjectofELVGreenDismantling TechnologyChinaFunding andRecycling2008–2010 TheKeyTechniqueInvestigationandPilot STCSMFunding ProjectofPassengerCarRecovery

remanufactured products shall not be less than for original new products; the parts remanufacturing enterprise shall not be allowed to take back or remanu-facture authorized products of another enterprise; the remanufactured products shall be circulated in auto manufactur-ers’ after-sales service systems and not sold directly in the retail market; the parts remanufacturing enterprise shall obtain the right to use the trademark from the OEM of the core. In addition, the national standard “Specification for Auto Parts Remanufacturing: Positive Ignition and Compression Ignition En-gines” was drafted in 2008.

Innovations

Since 2001, six fundamental re-search and pilot programs have been developed in Shanghai which are sup-ported by local government and the

government of China (Table III). The fundamental research issues concern LCA tools and database development for auto products; design for recycling and design for dismantling; theories and technologies for environmentally sound ELV dismantling; and remanu-facturing. An ELV dismantling pilot factory is completed, an engine parts remanufacturing pilot production line is installed, and a remanufacturing core pilot logistics center is planned. Key issues for used auto parts re-manufacturing include theories and technologies for clean processing of the remanufactured core; residual life evaluation, dimension, and precision inspection of core; dimension and pre-cision restoring of the core; disassem-bly, reassembly, and running-in of re-manufactured products; and quality control of remanufactured products. In-novations in parts remanufacturing aim at providing technical support and ex-ploring the development model for au-tomotive products remanufacturing in China.

Magnetic Memory NDT-Based Residual Fatigue Life Evaluation

Fatigue is the most common failure mode for mechanical parts. Residual fatigue life is a key indicator for evalu-ation of remanufacturability of used parts. Residual fatigue life is hard to determine by means of statistics be-cause the service history of parts is not clear. Magnetic memory is a physics phenomenon: the ferromagnetic mate-rials located in a geomagnetic field and under service loads will behave with decreasing magnetic conductivity and

Figure 4. Vehicle type approval mode for the recoverability rate and forbidden substances in China.

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increasing leakage of magnetic flux in the concentration areas of residual stress and deformation. A research group at Shanghai Jiao Tong University has focused on the crankshaft, developing a magnetic memory residual fatigue life evaluation method with the following features: es-tablishing the magnetic memory quan-titative characterization mode of the material’s fatigue damage; establishing mapping between the parameters of magnetic memory characterization and fatigue life; and establishing a practical residual fatigue evaluation method based on used crankshafts. The investigation based on 48MnV steel shows that a metal magnetic memory non-destructive testing tech-nique can be used to characterize the fatigue damage of ferromagnetic mate-rial.

Flow Plating: Automatic Operation and Mass Production of Brush Plating

Partial surface damage is another common failure mode for mechanical parts. Surface engineering, such as electroplating and thermo-spraying are repair methods developed especially for bearing houses, crank shafts, and other expensive parts. Traditional man-ual brush plating is not suitable for au-tomation and mass production require-ments. Therefore, a research group in Shanghai Jiao Tong University propos-es a so-called flow-plating technology. It is anodic without a cotton pack to store plating fluid; it involves plating of anodes and the work piece to maintain a certain space, with the plating fluid circularly pumped to flow to the plat-ing work area. Through a series of studies, brush-plating anode material was chosen and a flow-plating interface was designed, through optimization of parameters of the orthogonal test-plat-ing process.

Non-Governmental Organization for ELV Recovery in China

In 2007, the first ELV recovery non-governmental organization of China, the Shanghai Automotive Product Re-cycling Technical Committee, which is affiliated with the Shanghai Society of Automobile Engineers, was estab-lished. The members are mostly engi-

neers and technicians from Shanghai Automobile Industry Co. and other re-lated industries, such as suppliers, dis-mantlers, remanufacturers, and re-search institutes. In 2008, a nationwide automotive product recycling technical committee was created, which is affili-ated with the China Society of Auto-mobile Engineers. The technical com-mittee should be a platform for govern-mental administrative departments, in-dustries, research institutes, and uni-versities to communicate and collabo-rate on automotive product reuse, re-manufacturing, recycling, and recovery. In this organization, an international steering committee will lead in the ex-change and collaboration of science and technology in auto product recy-cling and recovery; promote auto in-dustrial policy for product recovery in China; and advocate sustainable auto-mobile consumption in Chinese com-munities.

Co-initiation of Asia Automotive Environmental Forum

After its initiation in Shanghai and one year of preparation, the first Asia Automotive Environmental Forum was held on October 29, 2008 in Seoul, South Korea. Among the more than 150 participants were government of-ficials, academics, and industry experts as well as automotive association rep-resentatives. The forum was hosted by Hyundai Motor Company, and au-tomakers such as China’s Shanghai Automotive Industry Corporation and Japan’s Toyota and Nissan participat-ed. There are many reasons for estab-lishing the Asian regional non-govern-mental forum: China, Japan, and Korea are closer neighbors in East Asia, and there are broader political and cultural exchanges as well as a higher mutual economic cooperation between the three countries. In the coming decade, automobile production and sales in East Asia will account for half of the world’s; it is significant to form an information exchange and consulta-tion mechanism, and accelerate the vehicle-recovery-related science and technology collaboration and dissemi-nation in this region. A second forum is scheduled to take place in Tokyo in 2009, while a third will be in 2010 in Shanghai.

actiVities in the fUtUre

Policies related to automobile prod-ucts recovery, regulations, standards, and technical specifications provide a guide for the auto manufacturers to implement the product design for re-coverability, establish management flow for parts material information, study disassembly techniques of parts, prepare products for manual disman-tling, and take part in the construction of a take back network for ELVs. The manufactuers must also be responsible for the take back and treatment of des-ignated hazardous substances. Vehicle-recovery-related activities in China should focus on policy and regulation, standards and technical specifications, and R&D. The policy for auto parts and compo-nents focuses on remanufacturing and circulation; OEM-guided auto prod-ucts and their packaging take-back sys-tem; the regulation of hazardous and dangerous substance disposal for auto products; and administrative rules for automotive products dismantling infor-mation disclosure. Standards and technical specifica-tions focus on testing methods to iden-tify hazardous substances in auto prod-ucts; methods for plastic/rubber parts marking and coding; standards for auto materials recovery proven technology and database; standards for automo-tive product dismantling information disclosure; parts and components re-manufacturing related technical speci-fications and standards. Research and development of the necessary technology processes and facilities shall include: process and equipment for sustainable ELV recy-cling with the main targets of clean dis-mantling; process and equipment for non-metal materials identification and sorting systems; techniques and theory for clean processing of remanufactur-ing core; techniques and theory for re-sidual life evaluation of the remanufac-tured core; and techniques and theory for dimension and precision restoring of remanufacturing core.

concLUsion

Implementation of the EU’s ELV directive eight years ago had a pro-found influence on China’s automotive

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industry, leading to consideration of concepts such as extended producer re-sponsibility as well as sustainable man-ufacturing and sustainable consump-tion. It also provided some impetus for ELV recycling industry developments within China. It is expected that a reg-istery of recoverability and use of re-stricted/banned substances in new au-tomotive products will be launched in early 2009. By the following year, all new automotive products sold in China will be forced to abide by certain quo-tas relating to recoverability and use of restricted substances. However, China’s ELV recovery in-dustry is still facing some significant issues, not least of which is the fact that improper disposal of hazardous substances and a lack of environmen-tal protection measures are common in vehicle dismantling operations. Given China’s abundant labor resources, large-scale automated recycling is deemed unsuitable whereas used parts remanufacturing provides development

opportunities for China’s ELV recy-cling industry. It is significant to specify the respon-sibilities of the auto manufacturers to reduce and improve recovery rates of auto production waste. It is significant, also, to reinforce the momentum of sci-entific and technological contributions, and strive for green competitiveness in the automotive recovery technology. Meanwhile, it is necessary to estab-lish technical and quality management specifications for parts remanufactur-ing, to define a reused parts distribution channel, to guide the auto manufactur-ers gradually to incorporate the reman-ufactured parts into their maintenance service and product management sys-tem, and to guarantee the quality and regulate the market of the remanufac-tured parts. Finally, it is important to give full play to the exchange platform of non-governmental organizations (such as the Society of Automobile Engineers of China and China Automobile Manu-

facturer Association), positively pro-mote international cooperation in re-covery technology of the automobiles, and advocate green procurement and consumption of the autos.

acknowLeDgeMents

The author expresses sincere thanks to the Ministry of Science & Technol-ogy, P.R. China for financing this re-search within the project “The Key Technique Investigation & Pilot Proj-ect of ELV Green Dismantling & Recy-cling” under the label 2006BAF02A18, and sincere thanks to the Science & Technology Commission of Shanghai Municipality for financing this research within the project “The Key Technique Investigation & Pilot Project of Pas-senger Car Recovery” under the label 08DZ1202900.

Ming Chen is a professor in the School of Mechanical and Power Engineering and Fan Zhang is a lecturer in the School of Media and Design, with Shanghai Jiao Tong University, No. 800, Dongchuan Road, Shanghai, 200240 China. Prof. Chen can be reached at [email protected].