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End-of-Life Vehicle Recycling in China: Now and the Future

Posted on: Thursday, 20 October 2005, 06:00 CDT

By Chen, Ming

The volume of in-use vehicles in China will reach 32 million by the end of 2006 and the volume of end-of-life vehicles (ELVs) will be more than 1.5 million by the end of 2005. In 2001, China passed a law regulating the disposal and recycling of ELVs. Progress has been slow, with the rate of ELV dismantling just 10% at the beginning of 2004. However, a pilot industrial demonstration of ELV dismantling and disposal was established in Shanghai in 2005. In addition, Shanghai Volkswagen established a modern engine remanufacturing plant aiming at its after-sales market. This article reviews the ELV policy, law, and administration system in China; the ELV dismantling industry; the challenges and opportunities of ELV recycling; and the state-of-the-art of remanufacturing of ELVs in China.

INTRODUCTION

Since the concept of sustainable development was introduced in 1987 by the World Commission on Environment and Development, China has paid close attention to research on the topic. A Chinese government white paper, "China's Agenda 21,"1 declared that "China's sustainable development strategies will emphasize the social aspects of the sustainable development. China's sustainable development will be based upon the sustainable utilization of resources and preserving a healthy environment." The strategic objective of China's sustainable development is "to establish economic and social systems conducive to sustainable development and to establish the mechanisms whereby these systems can be adapted to meet the evolving requirements forthe sustainable use of resources and the environment."

Vehicles have become a consumable industrial product for the average Chinese family. The volume of in-use vehicles in China, which is increasing dramatically, is expected to reach 32 million by the end of 2006 (Figures 1,2, and 3). As a consequence, the volume of end-of-life vehicles (ELVs) is predicted to exceed 3.5 million by the end of 2010. However, government data found that, as of early 2004, only about 10% of ELVs had been dismantled while the others were still in use illegally.

How to efficiently reclaim ELVs and how to develop comprehensive recycling techniques are key issues when considering ELVs as a resource in sustainable development. Table I shows a recent history of ELV recycling in Shanghai. The data for China as a whole are not available now, but an administration directive about such statistics is pending. The table shows that the rate of ELVs to in-use vehicles is nearly 3% in Shanghai; that rate in the United States is about 4.5%-6.5% and in Japan, 7%-8.5%.

Figure 1 The volume of in-use vehicles in China.

Figure 2. The production of vehicles in China.

For the sake of natural resource conservation, environmental protection, and harmonious development in China, technical innovations are necessary to thoroughly remold the ELV recycling industry into an intensive and environmentally benign industry.

Economic Analysis

Today, the annual sales of an average ELV dismantler in Shanghai are about $2,784,503 and annual revenue is about $496,368. Assuming that the average level of operation and management of ELV dismantlers nationwide is similar to that of the dismantler in Shanghai, it is estimated that the annual sales of the national ELV dismantling industry are about $850-960 million and annual revenue about $169 million. It is assumed that the rate of ELV recycling and the rate of part reuse (from the present 20% to 40%) will be improved with technique innovations.

Table 1. The Volume of In-Use and End-of-Life Vehicles in Shanghai Administrative District and Metal Reclaimed in ELVs

Solid Waste Reduction

In 2003, the volume of civil vehicles was 23.82 million in China. The rate of ELVs is assumed to be 3-5% of the total, and the volume of ELVs is estimated at 0.715-1.191 million (i.e., 2.415-4.025 million tonnes) in China. Ten percent of that weight was assumed to have been placed in a landfill as industrial solid waste. That equated to an estimated 241,500-402,500 million tonnes and accounted for 1.24-2.07% of the volume of nationwide industrial solid waste in the year 2003. It is assumed that the rate of ELV recycling and the rate of part reuse have improved due to technique innovations. In addition, it is estimated that the volume of vehicles sent to landfills as solid waste was 120,750-201,250 tonnes and accounted for 0.62%-1.04% of the volume of China's industrial solid waste in 2003. The results of the analysis suggest that a significant reduction of industrial solid waste results from technique innovations.

See the sidebar for details on ELV policy, law, and management in China.

THE ELV RECYCLING INDUSTRY IN CHINA

Overview

Among the challenges the Chinese ELV dismantling industry must overcome are a lack of professional equipment and management specifications, small production scales, low dismantling efficiency, low recycling rates, and environmental pollution. Almost all ELV dismantling plants are ill-informed about environmental protection and scientific, reasonable disposal techniques. For example, waste fluids are not removed before dismantling. Today, most ELVs are dismantled manually in China with pneumatic and electric tools and oxyacetylene cutting because of the low cost of labor. The dismantling processing is random and unreasonable. For example, in order to dismantle a part for sale, the connection or other parts around it might be destroyed. The secondary parts are sold without any inspection and processing. This is partly because customs would like to see the condition of the ELVs from which the part is dismantled to determine its quality and price, and partly because the plants have no capability for processing and inspection. The shredding process is simplified to cut metal into big pieces for convenient transportation rather than to grind it into smaller pieces.

Characteristics of ELVs in China

End-of-life vehicles in China differ by region. The ELVs of eastern China are in better condition than those in western China because of the advancing economy of eastern China and, consequently, the higher standards of vehicle users.

Figure 3. The volume of private vehicles in China.

Figure 4. Imported vehicles in China. Inset shows origin, by percent.

There are numerous end-of-life commercial vehicles in China. The proportion of personal cars is small, but increasing. Also increasing is the number of obsolete imported vehicles, which were sold in China in large quantities in the early 1990s (Figure 4). Passenger cars account for the biggest proportion of imported vehicles. For instance, in 2000, the proportion of passenger cars was 51 % (21,614 vehicles) and the proportion of four-wheel drive vehicles was 20% (8,668 vehicles). The proportion of imported trucks and buses added up to less than 30%. Imported ELVs are mainly recycled for their metal materials because such vehicles are generally used for business and official purposes. There is no market for reused parts in this market segment. On the other hand, some domestic auto-parts remanufacturing plants imported cores from the United States and Japan for sale abroad after remanufacturing. The gaps between the recycling of end-oflife imported vehicles and the outbound remanufacturing of auto parts and assemblies should be considered as the ELV industry develops in China.

Patterns of ELV Recycling Industry in China

The industrial components of ELV recycling and remanufacturing in China include reverse logistics and dismantling of ELVs; remanufacturing of typical parts and assemblies; recycling of materials; and waste disposal and environmental protection in the ELV recycling industry.

There are six ways to reuse and recycle materials after ELV dismantling in China:

* Parts reuse: Some parts enter the vehicle after-sales market or return to the vehicle manufacturer for assembly

* Reuse after remanufacture: The remanufactured parts mainly enter the vehicle after-sales market

* Reuse in debasement: Some parts are not qualified for use in vehicles but could be applied in other products or services, such as the use of obsolete tires to stabilize river banks

* Material recycling: Most recyclable materials, such as metals and plastics, are reclaimed as recycled materials

* Energy recovery: Some materials, such as tires and lubricating oils, are recycled by way of incineration, and the recovered energy could be used for the recycling industry itself or other applications

* Landfill: The shredder residues have to be land-filled

Vehicle Recycling and Reverse Logistic Infrastructure in China

There is a difference in the economic development and consumption in eastern, central, and western regions of China, which leads to differences in vehicle consumption. New vehicles begin their life cycle in the east and end in the west; as it develops, the Chinese vehicle recycling industry should consider this social fact. Therefore, the following model of vehicle recycling and reverse logistic infrastructure is proposed (Figure 5).

In the central and western regions of China, numerous ELV dismantlers should be established to accept obsolete vehicles. After being dismantled, t\he auto bodies, tires, plastics, and used oils should be treated locally. For instance, bodies should be recycled as scrap steel, and tires and plastics recycled as crushed powder. Effective and low-cost processes and equipment should be developed and applied in these regions.

The repairable parts and assemblies that are collected by dismantlers or service stations should be accumulated and sent to the remanufacturers. The remanufacturing enterprises could be specialized or comprehensive, and could be independent or belong to vehicle manufacturers. The remanufactured parts could then enter the spareparts market.

Finally, directly reusable parts could be collected by dismantlers and sent to original-equipment manufacturers (OEM) or vehicle manufacturers. The automotive suppliers should establish specialized workshops or departments for dealing with those parts that could be reassembled after strict quality checking and testing.

A Pilot Demonstration System of ELV Recycling in Shanghai

Overview

In Shanghai, an ELV recycling pilot demonstration system has been established to disassemble obsolete commercial vehicles for spare parts and recycle the vehicles' rubber, plastic, and metal material. The project is the first ELV recycling system in Shanghai established on the impetus of Statute 307, and may lead to the establishment of other similar systems in regions at the prefecture level and above with qualification cognizance all over China.

The dismantling plant, which is the heart of the system, includes equipment for disassembling large commercial vehicles (vehicle mass >5 tonnes), including pre-treatment for the safe, environmentally friendly removal of liquids, and also the capability for separating the different materials for recycling. Combined, the rubber, plastic, metal, and reused parts and assemblies processed weigh more than 12,500 tonnes/year, and annual profit is about $274,368. Preliminary indications are that the project could be profitable and sustainable. Figure 6 shows the layout of the plant.

The most significant advantages of the Shanghai operation are the low cost of labor as well as the large potential source of vehicles and the significant numbers of consumers of reusable and remanufactured parts.

The dismantling plant is housed in a facility of at least 20,000 square meters, much of which is used for storage. However, space is available to expand to incorporate some material-specific recycling and parts-remanufacturing modules. For example, an auto-engine parts remanufacturing workshop is planned, which would expand the secondary-parts market in China. The remanufactured parts would compete with new, OEM-compliant and guaranteed parts. Remanufacturing and sales of parts are likely to be important parts of the pilot system's success.

Figure 5. Vehicle recycling and reverse logistic infrastructure in China.

Shanghai Jiao Tong University, with financial support from the Science and Technology Committee of Shanghai Municipal Government, is collaborating with joint-venture entrepreneurs who manage the facility. The university is responsible for environmental issues and for the coordination of the factory layout and remanufacturing issues.

Goal

With the ELV recycling industry in China still developing at a slow pace, the Shanghai ELV recycling pilot system is anticipated to prompt the sustainable and orderly development of nationwide ELV recycling. Therefore, the goal of the pilot demonstration system is to "establish an ELV recycling engineering system which matches to the reputation of the international metropolis of Shanghai, and thoroughly remold the ELV recycling industry from (an) extensive to intensive and environmentally benign industry." Based on ELV disposal policies and laws, including Statute 307, the Shanghai municipal government consolidated the ELV recycling industry, and the former 14 officially designated ELV recycling enterprises were merged into the present four enterprises.

Technical Innovation

To achieve the ELV recycling goal, a scientific and practical administration system for ELV recycling in Shanghai has been established, with a municipal-wide information platform. The information system, made up of "Shanghai ELV Administration System" and "Operation Flow Management System Software for ELV Dismantlers," carries out the multilayered and multi-noded functional management of monitoring, coordinating, and administering the program among municipal governmental departments, ELV dismantler managing departments, and ELV dismantling workshops. Recommendations for ELV- related local policy and administrative regulation are proposed as well.

Second, a pilot demonstration ELV dismantling plant was established. The project was tasked with implementing a visual and corporate image; a recycling process for ELVs; facilities for dismantling; clean production of ELV dismantling; logistics and storage for the ELV dismantler; and reused parts and assemblies examination and remanufacturing.

The project developed a systematic green production specification and technological process for ELV dismantling plants, improving the recycling rate. The proportion of reused parts rose from 22.5% to the present 31.7% in weight, and the landfill deposits were reduced from 10% to 4%.

Based on the requirement of residual fatigue life prediction for reused parts, a patented apparatus was developed for residual fatigue life prediction of used auto crank shafts. The dangerous sections of used auto crank shafts are evaluated for cracks and stress concentration via eddy current testing and metal magnetic memory inspecting, respectively. Thus, it is comprehensively determined whether the used parts are worthy of being remanufactured.

Finally, a primary pilot demonstration network of reused auto parts was established (Figure 7). This network includes some downstream designated reuse and remanufacture industrial enterprises that specialize in reclaiming and disposing of used auto parts.

Figure 6. A layout of the pilot demonstration ELV dismantling plant in Shanghai.

Figure 7. A primary pilot demonstration network of ELV recycling in Shanghai.

The general investment in the Shanghai pilot demonstration system was about $1.2 million, and its annual profit and revenue total about $496,368.

Pilot ELV Recycling Process

The ELV recycling process in the pilot demonstration plant includes:

* Pre-treating-The first step in vehicle recycling is recovering the fluids and hazardous parts. These include motor oil and transmission fluid, gasoline, power steering fluid, windshield washer fluid, antifreeze, brake fluid, and batteries.

* Dismantling-The second step is to dismantle the usable parts and components. These include wheels and tires, steering columns, fenders, radios, engines, transmissions, dynamotors, actuating motors, select plastic parts and components, glass, foams, and other components based on after-market demand.

* Cutting-The next step is to manually cut the vehicle into easily handled hulks.

* Shredding-The hulk is then loaded into the vehicle shredder. The shredder grinds the vehicle into various-sized metals pieces.

* Resource recovery-The metals are then sent back to the steel industry for remelt. Extensive research is underway to develop methods for recovering energy and materials from the remains.

ELV REMANUFACTURE ACTIVITIES IN CHINA

Engine Remanufacture

There are only two engine remanufacturing factories in China. One, in Shanghai, is for Volkswagen engine remanufacturing (Shanghai Volkswagen Allied Developing Company, Ltd.) and the other, in Jinan, Shandong Province, is for Styrengine remanufacturing (Jinan Fuqiang Power Co., Ltd.). The latter is a Sino-Britain joint venture enterprise and a member of the Production Engine Remanufacturers Association.

Because of the potential market in remanufacturing, the availability of experienced technicians, and lower-cost labor, remanufacturing operations and investments are becoming more common in China. For example, a U.S.-based engine remanufacturing equipment provider, Sunnen Mechanical Company, Ltd., has been operational in China for two years. Sunnen says it will provide not only the remanufacture equipment but also the technology and service for the Chinese engine remanufacturing industry. Caterpillar (Caterpillar [China] Investment Company, Ltd.) has also established its Asia Pacific remanufacturing services office in Shanghai. However, engine remanufacturing is still restricted and controlled in China to prevent the illegal piecing together of vehicles.

Dynamotor and Actuating Motor Remanufacture

Some factories remanufacture dynamotors and actuating motors, as well as constant velocity joints, and power steering. Such factories are small and flexible, and some of them are automotive parts OEM suppliers. The quality of their remanufacturing parts is perfect, and the parts carry the same quality guarantee as new OEM automotive parts. The price of these secondary parts is one-third to one-half of new OEM parts

REMANUFACTURE TECHNOLOGY DEVELOPMENT IN CHINA

Surface Engineering in Engine Remanufacturing

The normal procedure for remanufacturing, forexample, main bearing houses, is to enlarge the holes and replace thick bearings. However, the thick bearings are scarce in the marketplace. With surface engineering, it is easy to achieve the same dimensions and surface conditions found in the original parts, and at a lower cost. Surface engineering is applied in Styr engine remanufacturing (Figure 8). The practiced surface engineering techniques include repairing main bearing houses in the engine body with a high-speed electric arc spray technique; repairing camjournals, crank journals, rod bearing houses, and other bearing houses with electric brush plating; and repairing flaws in the engine body with the micro- pulse cold weld technique.

Figure 8. A surface engineering workshop.

A national laboratory for remanufacturing was es\tablished in Beijing in 2003 to investigate fundamental research and practical applications of surface-engineering technology to enable the rapid development of the remanufacturing industry in China. The applications of newly developed nanoscale surface engineering, such as nano-material brush electroplating, nano-material thermal spraying, and nano-material self-repairing antifriction additive technology, have proven to be superior to traditional manufacturing methods.3

Residual Life Estimating for ELV Cores

A new systematic method has been established for estimating the residual life of the core before ELV remanufacturing. Based on the measurement of flaws and breaks in parts materials, the method attempts to estimate the residual fatigue life of parts to determine whether they can serve another life cycle. The method involves the inspection of macrocracks with eddy current testing and the estimation of damage and weakening of anti-fatigue capacity with a metal magnetic memory inspecting technique. The method is in use at Shanghai Jiao Tong University.

CHALLENGES FOR THE FUTURE

General Objectives of ELV Recycling in China for 2010

By 2010, the general ELV objectives in China are identified in the statute as "remold Chinese ELV recycling industry thoroughly from (an) extensive to intensive and environmentally benign industry with technical innovation, promote the sustainable utilization of natural resource, and advance the orderly development of ELV recycling." To achieve those objectives, the industry must implement an informationexchange platform for ELV disposal monitoring and administration within local administrative districts; establish and perfect systematic technological specifications for sustainable ELV recycling; and research and develop technology, processes, facilities, and equipment for sustainable ELV recycling in China. Technological issues include:

* Establishing a clean dismantling process for ELVs

* Developing a technology and specialized facilities for identification, sorting, and pre-treatment of nonferrous metals and plastic materials for ELVs

* Developing thermal/cold cleaning technology for cores

* Measuring and assessing residual service life for cores

* Improving the proportion of reused parts and the rate of ELV recycling

Requirements for the State-of-the-Art

Numerous advances are needed to achieve the state of the art in ELV recycling. For example, an information system is required for the monitoring, management, and administration of the entire vehicle life cycle (i.e., design, manufacture, sale, after-sales service, dismantling, scrapping, reuse, and recycling). According to Statute 307, the information system for ELV monitoring and administration and the systematic local administrative specifications should be developed within local administrative districts. The auto manufacturers should be involved in collaborative research on systematic specifications, legislation, and sustainable ELV recycling activities. Until now, manufacturers' responsibility for ELV disposal has been lacking in China.

In addition, further investigation is needed on the state-of-the- art in the clean ELV dismantling. New technologies, such as water jet cutting, should be applied to control and reduce the volume of gas, liquid, and solid waste in the dismantling process.

Technology and facilities specialized for identification, sorting, and pre-treatment of nonferrous metals and plastics materials for ELVs should be developed in order to upgrade the efficiency and quality of material recycling. For example, a portable infrared-based plastics-identification technology and apparatus could be applied in non-metal recycling of ELVs. Also, the recycling of nonferrous metals such as aluminum, magnesium, and copper alloys could be implemented. The identification and sorting of nonferrous parts would be mainly a manual operation. Thermal/ cold cleaning technology and equipment could be applied in cleaning of cores.

The model, criteria, and facilities for measuring and assessing residual service life should be developed based on nondestructive testing techniques such as metal magnetic memory and infrared thermal imaging. Also, further investigation is needed on surface engineering of the ELV core.

Next, the environmental management of the total materials cycle must evaluate the effect of changes in processing or material substitutions, where materials use, reuse, component remanufacture, and materials recycling can be considered and the overall costs and impacts assessed. And finally, approaches on education regarding sustainable ELV recycling in China must be explored.

Roadmap

The ELV recycling industry in China should establish a system to monitor, manage, and administer the life cycle of vehicles. Large- scale ELV recycling centers and well-organized reverse logistics are also needed. The centers could be either state-owned and designated ELV recycling corporations or steel-scrap oriented ELV recycling enterprises supported by the steel industry. The centers should be responsible for ELV recycling R&D collaboration among government, industry, and universities.

A remanufacture center for auto parts must be established that relies on the technology and specifications of auto manufacturers and suppliers, and it should collaborate with insurance agents for the potential auto repair market.

Finally, international communication and cooperation should be established with, for example, the United States, the European Union, and Japan, on techniques, management, and industrialization of ELV recycling.

In developing sustainable ELV recycling in China, the following points should be considered: ?

* Pursue R&D for easy-to-recycle materials and parts

* Reduce the categories of materials used in vehicle manufacture

* Develop a design for dismantling and design for recycling

* Expand the categories of reused and remanufactured parts, and raise the ratios of material recycling

* Reduce shred residues and improve their disposal

* Pursue R&D for clean energy recovery

* Conduct life-cycle assessments for ELV recycling techniques

CONCLUSION

Although China has realized ELV recycling is important since 2001, a 10% ELV recycling rate means 90% of dangerous ELVs are still on the road.

The ELV industry in China has some bright points as well as problems. For example, the engine remanufacture factories are modern, well organized, and profitable, but the engine- remanufacturing business is highly restricted and has some problems with legislation.

However, it is clear that China makes more and more vehicles each year, and more and more ELVs should be disposed of properly. To establish a sustainable developing economy and a community system, and to maintain a compatible resource and environmental system are Chinese ambitions. The government administration, research institutes, and industry have begun collaborations on those ambitions. The ELV recycling industry is full of opportunities in China.

ACKNOWLEDGEMENT

The author expresses sincere thanks to the Science & Technology Commission of Shanghai Municipality for financing this research within the project "The Key Technique Investigation & Pilot Demonstration of ELVDisposal in Shanghai" under the label "02DZ12103," and the Natural Science Foundation Committee for financing this research within the project "The Fundamental Theory and Key Techniques for Remanufacturing " under the label "50235030."

ELV POLICY, LAW, AND MANAGEMENT SYSTEM IN CHINA

In 2001, Statute 307 regulating end-of-life vehicle (ELV) disposal was issued by the State Department of China. This is the highest law concerning the disposal of ELVs in China today. The Chinese ELV standard (issued by the National Committee of Economy and Trade) requires that civil vehicles registered in China should be discarded as ELVs according to the following technical specifications (all categories except other and light commercial vehicles include four-wheel drive, off-road vehicles):

* Mini-size commercial vehicles, mileage up to 300,000 km

* Light commercial vehicles, mileage up to 400,000 km

* Heavy, medium commercial vehicles, mileage up to 400,000 km

* Passenger vehicles, mileage up to 500,000 km

* Others, mileage up to 450,000 km

* Mini-size commercial vehicles, including trailers and taxicabs, service period up to 8 years

* Light commercial vehicles and others, service period up to 10 years

* Vehicles with a service period of the fixed number of years as listed. However, taxicabs for less than 19 passengers, and light and mini-size commercial vehicles could prolong their service period up to half of the fixed number of years if they pass inspection for compliance with national vehicle exhaust standards.2

The ELV recycling industry is controlled as a special industry and the ELV recycling enterprises are administered under a qualification cognizance system. According to Statute 307, the number of ELV dismantling enterprises is limited to 367 in China. The terms for qualification as an ELV dismantling enterprise are: registration capital should be higher than $60,240; land for production activities should be greater than 5,000 square meters; dismantling equipment and fire-fighting establishments are required; the capacity of dismantling should be more than 500 vehicles per year; the enterprise should have more than 20 employees, including more than five technicians: there must be no record of illegal activities; and the facility must meet national environment protection standards.

Prefectural and higher local governmental departments of economy management are responsible for supervising and managing ELV recycling activities in the local administration district. Prefectural and higher local governmental departments of public security (i.e., police) and departments of commercial administration supervise and manage local ELV recycling activities within the scope of their own power and responsibility.

Thestatute requires that vehicle owners sell ELVs to a vehicle recycling enterprise. Any private sales (to unqualified individuals) and donations are prohibited. As stated in the statute, the "five supervised assemblies of vehicles" including engine, power transmission box, steering, axle, and chassis should be destroyed and recycled as metal materials. Other parts could be sold as secondary parts with the compulsory labels of "ELV reuse parts."

References

1. The State Council of the PR. China, "Agenda 21," White Paper on China's Population, Environment, and Development in the 21st Century, adopted at the 16th Executive Meeting of the State Council of the P.R. China (25 March 1994).

2. General Administration of Quality Supervision, Inspection and Quarantine, Chinese National Standard GB 7258-2004.

3. B.S. Xu, "Nano-Surface Engineering and Remanufacture Engineering," Trans. Nonferrous Metals Society of China, 14 (Sp. lss. 2) (October 2004), pp. 1-5.

Ming Chen is an associate professor in the School of Mechanical and Power Engineering, Shanghai Jiao Tong University, in Shanghai, China.

For more information, contact Ming Chen, Shanghai Jiao Tong University, School of Mechanical and Power Engineering, #1954 HuaShan Road, Shanghai, 200030, P.R. China; +86-21-6293-2905; fax +86-21-5254-1413; e-mail mingchen@sjtu.edu.cn.

Copyright Minerals, Metals & Materials Society Oct 2005

Source: JOM

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