China’s “Magically Modified Mechs” Exports Poised to Become a “Trillion-Yuan Blue Ocean”

According to a report by Reference News on August 7 (by Su Xiaozhou), remanufactured construction machinery refers to products created by “magically upgrading” aging construction equipment using advanced and practical technologies. In recent years, these cost-effective “heavy-duty machines” have emerged as a “value-for-money choice,” making them particularly well-suited to the Global South—where demand is high but purchasing power is relatively low—and have thus gained widespread favor in many countries across Asia, South America, and Africa. As overseas orders continue to grow, remanufacturing enterprises for construction machinery have sprung up across China, with regions such as Hunan even developing industrial clusters and parks that bring together over a hundred companies.

Industry experts believe that scaling up the export of remanufactured construction machinery can both boost economic and social development and improve living standards in relevant countries and regions, while also helping China better achieve its manufacturing transformation and meet its “dual carbon” goals. Looking ahead, by strengthening standardization and regulatory frameworks and enhancing overseas service capabilities, the export trade of remanufactured construction machinery is poised to evolve into a “hundred-billion-yuan blue ocean” market.

Turning Waste into Treasure in Construction Machinery

In mid-June this year, the Fourth China–Africa Economic and Trade Expo’s Construction Machinery Remanufacturing Exhibition (hereinafter referred to as the “Remanufacturing Exhibition”) was held at the Central China International Machinery Park in Xiangtan, Hunan Province. At the roughly 40,000-square-meter exhibition venue, reporters observed a concentrated display of construction machinery and equipment manufactured by companies such as China Railway Science & Industry Group, Sany Group, and XCMG Group. Prominently displayed on the exhibits were labels indicating that all items had been produced through the remanufacturing of recovered used equipment.

To demonstrate the performance of remanufactured construction machinery, XCMG staff operated a remanufactured excavator on-site, using its bucket teeth to “grip” a brush and write characters and to “hold” a tool to open a beer bottle cap, earning enthusiastic applause and praise from the hundreds of Chinese and foreign guests in attendance.

According to several representatives from exhibiting companies responsible for international marketing, unlike traditional overhauls or refurbishments, China’s construction-equipment remanufacturing employs advanced, appropriate processes, technologies, equipment, and materials to systematically disassemble, inspect, repair, replace components, upgrade, and retest recovered used construction machinery before it is released from the production line. During the remanufacturing process, techniques such as laser nondestructive testing, plasma welding, 3D printing, and new materials are utilized.

After undergoing “radical modifications,” these construction machines not only boast a brand-new appearance but also deliver performance and quality that rival those of new equipment, thereby meeting the demands of a wide range of application scenarios. Zhang Shejun, deputy director of the Research and Design Institute of Tunnel Boring Machines at China Railway Construction Heavy Industry, explained that the company took the slurry shield tunneling machine “Yuan’an,” which it had used years ago in the Yuanjiang Tunnel project in Changde, Hunan Province, and remanufactured it into a earth-pressure-balanced shield machine named “Jinxiu,” which was then redeployed for excavation on the Jinxiu Tunnel in Chengdu. During this process, the cutterhead diameter was increased from 11.75 meters to 12.79 meters, the operating mode was switched from slurry to earth-pressure balance, and the overall utilization rate of existing components exceeded 80%.

Industry insiders explain that remanufactured construction machinery typically sells for 50% to 70%—or even less—of the price of a brand-new unit of the same model, thereby extending equipment service life, reducing resource consumption, and significantly cutting carbon emissions and environmental pollution. For example, a Hubei-based company remanufactures heavy-duty bulldozers that sell for RMB 3.5 million (excluding tax), about RMB 10 million cheaper than new units of the same model from the original manufacturer. Another Hunan-based firm offers remanufactured long-boom concrete pump trucks at just 40% of the price of new models from the original brand, while achieving 60% energy savings and an 80% reduction in carbon emissions compared with new-machine production. Furthermore, a company in Hengyang, Hunan Province, has upgraded aging diesel-powered wheel loaders by incorporating new technologies such as advanced power batteries and permanent-magnet motors, resulting in “zero emissions” from exhaust and reducing operating costs by roughly 60% compared with diesel-powered machines.

The Remanufacturing Expo drew exhibitors from 39 countries and international organizations. A visitor from Côte d’Ivoire, after taking a seat in the cab for a hands-on experience, gave a thumbs-up and remarked, “Equipment like this is perfectly suited to Africa!” Meanwhile, a guest from Kenya noted: “In the past, many projects in Africa were difficult to carry out because it was simply unaffordable to purchase brand-new, large-scale construction machinery. The emergence of China’s remanufacturing technology, however, has made such equipment financially accessible to project developers, giving us greater confidence in accelerating the development of public infrastructure and mining operations across Africa.”

According to organizers of the Remanufacturing Expo, foreign delegates from Algeria, the Democratic Republic of the Congo, the Central African Republic, the Comoros, Gabon, and other countries also engaged in a series of site visits and business matchmaking sessions with enterprises in the remanufacturing industry cluster at the Xiangtan Central International Machinery Park, resulting in orders and cooperation agreements totaling more than RMB 100 million.

An official from Sierra Leone candidly stated that China’s advanced remanufacturing technologies will usher in new development opportunities for African countries, and expressed the hope that China and Africa will strengthen policy coordination, share industrial resources, and innovate cooperation models, thereby establishing construction-machinery remanufacturing as a new highlight, a new pillar, and a new model of China–Africa cooperation.

Scaling up the industry remains a key challenge.

According to reports, companies in the Changsha Economic and Technological Development Zone, the Xiangtan Central International Machinery Park, and other regions have leveraged online live streaming, trade shows, and various other marketing channels to gradually attract foreign dealers who previously scoured China’s used-equipment market. As a result, remanufactured construction machinery—billed as the “cost-effective choice”—is now being marketed overseas. Leading firms in this sector, such as Sany Group, have even established dedicated “official used-equipment” divisions, achieving strong business performance in international markets.

According to interviews with industry insiders from both China and abroad in the construction machinery sector, Southeast Asia, the Middle East, South America, and Africa are the primary export markets for China’s remanufactured construction equipment. From January to May this year, China’s exports of construction machinery to Africa surged by 58%, with a significant share consisting of remanufactured units.

A marketing executive at a company revealed that its remanufactured cement pump trucks, concrete mixer trucks, and other equipment have generated more than RMB 50 million in sales over the past two years in African countries such as Nigeria, Algeria, and South Africa. In addition, excavators, wheeled cranes, crawler cranes, and rotary drilling rigs are also poised for strong sales in markets including Mexico, the United Arab Emirates, Kazakhstan, India, and Malaysia, while overseas markets for port machinery and road-construction equipment are steadily expanding.

During interviews with industry insiders, the reporter also learned that China’s export of remanufactured construction machinery is currently in its nascent stage—characterized by production driven by sales and small, sporadic orders—and that achieving large-scale, batch production to truly “scale up” the industry remains an unresolved challenge.

A lack of standards. At present, only a small number of enterprises or industrial parks have preliminarily established quality grading standards for remanufactured construction machinery products. The industry as a whole lacks a unified remanufacturing standards system, resulting in chaotic market transactions and equipment pricing, low transaction transparency, and frequent difficulties in export trade—often described as “being afraid of both the wolf and the straw scarecrow.”

Service gaps. With the exception of leading enterprises, most Chinese companies lack robust after-sales service systems overseas, making it difficult to promptly dispatch qualified technicians and supply spare parts when equipment malfunctions. Furthermore, most remanufactured equipment does not come with after-sales warranty coverage, and even when such coverage is available, it is often hard to enforce.

Lack of authorization. Some original-brand manufacturers of remanufactured equipment are registered with customs and require authorization for export; however, the authorization process lacks clear guidance, making it difficult, time-consuming, labor-intensive, and costly to obtain.

Lack of institutional mechanisms. At present, a comprehensive policy and regulatory framework for the export of remanufactured construction machinery has yet to be established, resulting in cumbersome operational procedures and ambiguous interpretations of relevant laws and policies in areas such as out-of-area account closure, invoice issuance, customs declaration and clearance, applicable tax rates, and credit policies.

According to reports, because exported remanufactured construction machinery is typically large-scale equipment, its production and sales are capital-, technology-, and labor-intensive; thus, any disruption at any stage of the export process can easily jeopardize the entire transaction.

Industry insiders note that, at present, securing many export orders requires the foreign party to offer sufficiently high prices and ensure ample profit margins. Both Chinese and foreign firms must simultaneously identify demand overseas while leveraging their expertise to select products in China, engaging in “cash-on-delivery” transactions where payment is made upon receipt of goods—full-payment, spot delivery arrangements. By contrast, trade modalities such as installment payments, CIF delivery, and leasing have yet to gain traction. This situation is detrimental to cultivating overseas customers’ positive reputation, trust, and satisfaction with China’s remanufacturing sector.

Creating a favorable wind, with promising prospects.

According to industry insiders, the Global South—particularly the countries and regions participating in the Belt and Road Initiative—represents a key market for China’s exports of goods used in overseas engineering contracting projects, making remanufactured construction machinery highly marketable. At present, China maintains nearly 10 million units of construction machinery, and the sector is shifting from an incremental-market-driven growth model to one centered on the existing stock. If multiple stakeholders work together to leverage this existing stock through “upgrading old equipment to new” and “turning waste into treasure,” the remanufacturing of construction machinery—and its subsequent expansion into international markets—holds significant potential.

Building a standardized industrial ecosystem. Standards are the cornerstone of any industry; therefore, it is essential to secure national support while fostering close collaboration among local governments, industry associations, leading enterprises, and specialized inspection agencies. This collaborative effort should further advance the standardization of remanufacturing quality-control processes and product-performance grading, establish robust systems for the appraisal and certification of used equipment, and implement end-to-end traceability mechanisms. Moreover, efforts should be made to promote international mutual recognition of relevant standards. By leveraging the standards framework, regulatory oversight over the industry and individual enterprises can be strengthened. Establishing high-level testing laboratories within industrial parks and implementing “one-stop services” will elevate remanufacturing technology and product quality, thereby not only regulating market order but also fostering a standardized industrial ecosystem.

Enhancing overseas service capabilities. As service is the foundation of trade, it is essential to advocate for the introduction of favorable national policies such as tax breaks and fiscal subsidies. At the same time, local governments should provide support and assistance to leading enterprises in key countries and regions along the Belt and Road Initiative, including Africa, to establish comprehensive after-sales service centers equipped with intelligent operation-and-maintenance platforms that can be shared by small and medium-sized enterprises, as well as spare-parts warehouses and overseas fulfillment centers. These measures will effectively improve the delivery capacity of remanufactured construction machinery, enhance customer application guidance, and strengthen after-sales warranty and repair services.

Break through restrictions on brand authorization. All stakeholders in the remanufacturing industry need to conduct in-depth research into domestic and international laws and regulations: on the one hand, leverage internationally accepted principles such as “exhaustion of rights” to address limitations imposed by brand registration requirements; on the other hand, foster collaboration between remanufacturing enterprises and original brand owners to secure qualification and authorization. In addition, it is essential to establish a scientific legal-risk assessment and early-warning mechanism that brings the legitimate rights and interests of both remanufacturing enterprises and end-users under the protection of domestic and international regulations.

Innovative mechanisms to support “going global.” Building on early pilot initiatives in Hunan, Zhejiang, and other regions, further institutional innovations are being rolled out: streamlined procedures for account closure have been introduced to facilitate business operations; and tailored financial services are being provided to support flexible trade arrangements for remanufactured products in Africa and other markets, including landed delivery, installment payments, barter trade, and lease-to-own models.