Remanufacturing “Re-Exports” to Unlock New Blue Oceans in Foreign Trade

At the Construction Machinery Remanufacturing and Maintenance Base in the Changsha Area of the Free Trade Zone, a mixer that has undergone a “baptism by fire” has been revitalized. Soon, it will be shipped overseas to continue its powerful roar on a brand-new stage.

Hunan is a major province for construction machinery, and Changsha is renowned as the “Capital of Construction Machinery.” In recent years, the Changsha Area of the Hunan Free Trade Zone has actively explored a new full-industry-chain model for the remanufacturing and export-oriented maintenance of construction machinery, resulting in rapid growth in exports of high-quality used construction equipment.

Exporting Remanufactured Products: Opportunities and Challenges Coexist

In recent years, China’s exports of used construction machinery have maintained an average annual growth rate of 30%. With the government designating construction machinery as one of the 11 priority sectors for large-scale equipment renewal, robust policy support has been provided for the remanufacturing and export of such machinery.

“Our first-tier remanufacturing process enables products to achieve 90% of the performance of new equipment, while reducing manufacturing costs by 40%. At the same time, through our intensive utilization of resources, we can help customers obtain more cost-effective solutions,” said Fang Zhan, General Manager of Hunan Huimeng Heavy Industry Technology Co., Ltd. “For example, a brand-new machine that retails for nearly RMB 5 million can be remanufactured and sold for just over RMB 3 million.”

Fang Zhan stated that the company has also developed a new integrated mixing-and-pumping machine, which combines the functions of two types of equipment, occupies a smaller footprint, and requires less labor, making it highly popular among overseas customers.

Thanks to their high cost-effectiveness and customizable solutions, China’s remanufactured construction equipment has become a “star product” in overseas markets. Nevertheless, despite the promising market prospects, the export of used construction machinery continues to face multiple challenges.

“In the past, when regulations were lax, some traders carried out construction in ‘no-man’s-land’ areas, which had a significant negative impact on the environment and the overall image of the industrial park,” said Peng Ying of Shanhe Intelligent Equipment Co., Ltd. She added that the biggest challenge facing the export of remanufactured products lies in establishing clear regulations and standards.

In addition, the underdeveloped export tax rebate policy, the lengthy disposal cycle for litigation-related equipment, and the difficulty in obtaining certificates of origin all pose constraints on the development of Changsha’s remanufacturing industry.

Establishing Standards and Fostering Internal-External Collaboration to Unlock a “New Blue Ocean”

Currently, the export of remanufactured construction machinery and automobiles, along with related repair services, has emerged as a new growth driver for foreign trade in the Changsha Economic Development Zone. In response to the pain points and bottlenecks encountered in the international expansion of remanufactured products, the zone and its resident enterprises have taken proactive measures, breaking through conventional barriers through innovation to open up broader international channels.

With the support of the Changsha Area of the Hunan Free Trade Zone, the Hunan Provincial Alliance for the Export of Remanufactured Construction Machinery Equipment was established. Leveraging this alliance, Hunan has formulated and released eight group standards for the remanufacturing and maintenance of construction machinery.

In March last year, the Construction Machinery Remanufacturing and Maintenance Base in the Changsha Area of the Hunan Pilot Free Trade Zone was officially inaugurated and began operations. Built on the principles of “government guidance, enterprise leadership, and market-oriented operation,” this industrial hub integrates repair equipment, inspection and labeling, warehousing and logistics, and one-stop services, and has so far successfully attracted 13 enterprises to set up operations there.

“The government has brought all these traders under standardized regulations by establishing industry standards and providing one-stop solutions. As a result, the traders are now operating in compliance within the park, which has also enhanced our overall image,” said Peng Ying.

As a national-level pilot enterprise, Shanhe Intelligent has also demonstrated a long-term strategic approach to overseas after-sales service. To address the core challenge of “inadequate spare parts supply” that often hinders the global expansion of heavy machinery, Shanhe Intelligent has partnered with major domestic suppliers to pre-position high-frequency, wear-prone components in overseas warehouses across the Middle East, Africa, and other regions, thereby ensuring that local equipment breakdowns can be promptly resolved through on-site parts delivery.

At the same time, we are actively advancing the localization of our service teams by partnering with local vocational and technical schools to implement “targeted training programs,” thereby building up a forward-looking pool of expertise in new-energy construction machinery and comprehensively strengthening our competitive edge in overseas markets.

Not only has the Changsha Economic and Technological Development Zone achieved remarkable results in the heavy-industry sector, but it has also reaped significant successes in the remanufacturing of cultural and office equipment.

According to reports, Hunan Zhijian Copier Remanufacturing Co., Ltd. takes high-quality used copiers sourced from Europe and North America, disassembles and inspects them, cleans them, replaces core components, and repairs both hardware and software, thereby extending their service life to more than 90% of that of new machines—while charging only 40% to 60% of the price of a brand-new unit.

According to reports, Zhi Jian copiers are now sold in more than 90 countries and regions worldwide, with sales revenue reaching nearly RMB 1 billion in 2024, making the company a leading player in the national copier remanufacturing industry and a vivid model of circular economy within the industrial park.