SANY Launches First Engineering Machinery Remanufacturing Base
DONGFANG, China — SANY Group has recently commenced operations at its inaugural global engineering machinery remanufacturing base located within the SANY Hunan-Hainan Intelligent Manufacturing Industrial Park, known as the 'Park'. This significant development, which took place on December 23, symbolizes a pivotal moment in SANY's drive towards global expansion and sustainability. On its opening day alone, SANY secured impressive orders amounting to CNY100 million (approximately USD14.27 million) from markets in Southeast Asia and Africa.
A Vision for Sustainable Operations
The Park stands out as a groundbreaking industrial site in China, being the first to be co-constructed by both a pilot free trade zone (FTZ) and a pilot free trade port. This unique setup intends to enhance the interconnected growth of Hunan and Hainan by leveraging the distinct industrial strengths and policy advantages of each province. This approach is designed to empower Chinese enterprises as they embark on expanding their global presence.
Park Overview and Future Potential
Spanning an area of 150 mu (around 10 hectares), the Park signifies a substantial investment totaling CNY600 million (USD85.62 million). Once fully operational, it is anticipated to generate an annual output value of approximately CNY750 million (USD107.02 million). The facility strategically positions itself as a regional hub for remanufacturing, focusing on both the maintenance and revival of essential engineering machinery components and second-hand equipment sourced from both local and international markets. This initiative promotes the effective circular reuse of key industrial resources, contributing significantly to sustainable practices.
Operations and Economic Benefits
In conjunction with the policies of the Hainan FTZ, the facility offers unique tariff benefits for eligible value-added processing activities. Remanufacturing operations are permitted under a supervised bonded framework that may qualify for corporate and personal income tax incentives. The Park is also part of the favorable 'Dual 15%' tax incentive regime, allowing its outsourced processes to benefit from a reduced corporate income tax rate of 15%.
Strategic Initiatives and Future Goals
SANY Chairman, Tang Xiuguo, highlighted the project's significance as a strategic initiative aimed at advancing globalization, digital transformation, and low-carbon strategies within the company. Looking ahead, SANY is committed to exploring innovative remanufacturing models and accelerating the circular reuse of industrial resources, with a shared goal of facilitating the transition to a greener and low-carbon engineering machinery sector across the globe.
Frequently Asked Questions
What is the purpose of SANY's new remanufacturing base?
The new remanufacturing base aims to enhance the sustainability and globalization of SANY's operations by focusing on the remanufacturing of engineering machinery components.
What is the expected output value of the Park?
Once fully operational, the Park is anticipated to achieve an annual output value of about CNY750 million (USD107.02 million).
How does the Park benefit from tax incentives?
The Park is eligible for various tax incentives under the Hainan FTZ, which includes a 15% reduction in corporate income tax for its operations.
What markets is SANY targeting with this new facility?
SANY is looking to secure orders specifically from Southeast Asia and Africa, among other international markets.
What is SANY's broader vision for sustainability?
SANY aims to innovate in remanufacturing processes and promote circular resource use to support a low-carbon transition in the engineering machinery industry.
