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Volkswagen FAW starts China engine recycle plant operations

ABR Staff Writer Published 06 September 2011

Volkswagen FAW Engine (Dalian), a joint venture between Volkswagen and China based partner FAW, has started operations at its passenger vehicle powertrain remanufacturing facility in northeastern city of Dalian, China.

Volkswagen FAW has invested about CNY100m ($15.65m) in the plant that can recycle 5,000 engines annually in its initial stage, which is expected to increase to 15,000 units a year in 2014.

The company said that at the outset, only EA888 series engines will be rebuilt, with transmissions and other engines to follow later, said the joint venture.

Volkswagen Group China president and CEO Karl-Thomas Neumann said it is the first time the group has built a powertrain remanufacturing facility outside of Germany and the move is further proof that it is bringing advanced technologies to China.

The company started remanufacturing major auto components in 1947 and by 2008 it had recycled 7.7 million engines and 2.8 million transmissions.

Remanufacturing factories disassemble old engines and transmissions, which are then carefully checked, in which usable components are retained and renewed, while worn out parts are replaced.

The company said that compared to manufacturing all-new components, every 10,000 remanufactured engines can save 14.5 million kWh of electricity and reduce 600 tonnes of CO2 emissions.